Recycling

Recycling is the process of returning active tao or alpha to the unissued pool.

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Recycled vs. burned

Recycled tao/alpha just becomes unissued - ready to be emitted again at a later date

Burned tao/alpha is destroyed. This token no longer exists, and cannot be used.

Alpha token recycling

• Neuron registration: When a neuron is registered, the coldkey pays the registration fee in tao. However, the fee is sent through the subnet pool and converted to alpha. This alpha is then recycled.
• Subsidized subnets: In certain conditions, excess tao is sold to alpha. This alpha is then recycled.

Tao recycling

• Root Neuron Registration: If registering on root, there is no need to transfer the fee into alpha. The tao is directly recycled.
• Subnet Registration: When a subnet is registered, 1 tao from the fee is placed in the subnet pool. If there is any lock fee remaining, it is recycled.
• Transaction fees: Extrinsic (transaction) fees are recycled — subtracted from total issuance and available to be emitted again later, rather than paid to the block author. Since runtime 445 this reverted the earlier behaviour of rewarding the block author. Alpha-denominated fees are sold to tao and that tao is recycled. See the Runtime 445 explainer.