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.