Emission for Parent/Child Hotkeys
Parent hotkeys are validators that do not run infrastructure in a subnet. They use their stake as a parent hotkey to a validator running infrastructure (the child hotkey).
Parent hotkeys have all of the same abilities as child hotkeys.
- Delegators may stake alpha on a parent hotkey inside a subnet.
- Delegators staked on root receive root stake from parent hotkeys.
How we got here:
Calculating emissions for Parent/Child hotkeys
Example
Taostats is the validator
There are two parent hotkeys:
The validator running the child hotkey (running the validation infrastructure) can impose a child hotkey take on any validator running a parent hotkey. In the screenshot above the child hotkey take is set at 4.5%.
Step 1: Find the tao and alpha staked to the hotkey
First, we determine the amount of tao and alpha each validator has on this hotkey:
- Taostats has 8/9 of its stake
- parent_1 has 50% of its stake on this child hotkey
- parent_2 has 100% of its stake on the child hotkey.
Step 2: Determine the total stake of each validator
tao_weight = 0.18
Step 3: Find the Percentage of total stake, and apply it to the dividends.
The 0..15 dividends are split based on the % of total stake for each validator
Step 4: Apply child hotkey take to parents
Taostats has a 4.5% child hotkey take. Remove 4.5% of the dividends from each parent, and apply the proceeds to taostats.
0.000102 and 0.003372 are taken from parent_1 and parent_2, and added to taostats' final dividends.
Step 5: Repeat this math for all child hotkeys.
Taostats has 1/9 of its stake on another validator.
Parent_1 has 50% of its stake on other validators.
Sum these dividends for all hotkeys in a subnet to get the final dividends for a validator on a subnet.
Child Hotkey Take
Note that the child hotkey take collected by the child hotkey is added to the dividends of the validator.
This means that most of the child hotkey take is distributed to the stakeholders of the validator, and it is not directly deposited to the vlidator's wallet.
Next Steps:
The remaining dividends are then divided amongst stakeholders.
Updated about 1 month ago