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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

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

• root_stake: The amount of tao staked to a validator on root.

• alpha_stake: The amount of alpha staked to a validator on the subnet

• total_stake: The value used to determine emissions. tao_weight is defined on chain as 0.18.

  

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 sun 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. This will then be divided into root emission (and converted into tao) and alpha emission - awared to stakehodlers holding alpha.

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.