Stakeholder Emissions: Alpha

Stakeholders may stake on a validator in a subnet.

• Staking on a subnet converts tao into subnet Alpha Tokens. This will cause there to the Slippage
• For every block, a percentage of emissions will be rewarded to each alpha stakeholder.

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How we got to this step of Emission:

Step 1: Subnet Emission Distribution: How emitted tao is split amongst the subnets

Step 2: Alpha Emission: How the emitted alpha is split between the Subnet pool and subnet participants.

Step 3: Emissions for Validators: How the Subnet emission is divided amongst all the validators.

Step 4: Emission for Parent/Child Hotkeys: On each subnet, determine the rewards for each validator. This sums across all parent and child hotkeys. The validator's take is removed.

Step 5: Emissions: Root vs. Alpha Stake: Divide the validator's dividends into a root proportion and an alpha proportion

Emission in Alpha

Step 1: From the total dividends in alpha - deduct the validator's take, and award to their hotkey.

Step 2: With the remaining alpha, award every hotkey a weighted average (based on the amount of alpha stake)