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How we got here

Subnet Emission tao and alpha

Distribution of alpha_out to participants

How are emissions calculated for Validators?

Terms to know

VTrust

1. Validators test miners and create a weighted list of scores. These are submitted to the Yuma consensus.
2. These scores are compared to the other validators - and each validator is judged to be in consensus with the rest of the validators.

If a Validator is judged to be out of consensus, their VTrust (validator trust) will decrease. VTrust is a value between 0 and 1, where 0 is terrible, and 1 is perfect.

Stake Weight

The other value in the determination of validator emissions is the stake weight. Validators with higher stake weight will receive higher emissions.

• root_stake: The amount of tao staked to a validator on root.
• tao_weight : Defined on chain as 0.18.
• alpha_stake: The amount of alpha staked to a validator on the subnet
• total_stake: The value used to determine emissions.

Dividends

Dividends are the percentage of the total validator emissions that will be given to each validator. It is calculated from VTrust and total_stake. High stake & high VTrust lead to high dividends. High dividends yield high emissions.

• The sum of all dividends on a subnet is 1.
• Dividend score is calculated once per tempo (360 blocks for most subnets).

Calculating Validator Emission

• Validators receive 41% of the alpha_out subnet emission.
• The validator's dividend score gives the fraction of the Validator alpha that is awarded.

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Emission math example

A subnet receives 1 alpha_out per block.

In 1 epoch - 1*360 = 360 alpha.

Validators receive 41% of the subnet' emissions. 360*.41 = 147.6 alpha

Validator x has dividends of 0.006. 147.6*0.006 = .8856 alpha per epoch.

Validator x has 0.8856 alpha emission.

If this validator has parent hotkeys this will be divided amongst the validators based on the stake (see Emission for Parent/Child Hotkeys).

This will then be divided into root emission (and converted into tao) and alpha emission (see )Emissions: Root vs. Alpha Stake.

Validator rewards

We have calculated the emission to the validator, but this is further split by several factors:

• Parent hotkeys receive their percentage of the stake.
  • The validator may take a child_take from this emission.
• Each Subnet has a root: alpha proportion that divides the emissions.
• Both alpha and root proportions may have a validator take.
  • This is the reward for the validator.
• The remaining root and alpha reward is divided amongst stake nominators.

Next Steps

• Emission for Parent/Child Hotkeys: Dividing dividends to parent/child hotkeys.
• Emissions: Root vs. Alpha Stake Dividing between root & alpha proportions.
• Stakeholder Emissions: Root & Stakeholder Emissions: Alpha: distribution of emissions to stakeholders.