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How we got to this step of Emissions

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

Root Emissions:

Stakeholders on root place their delegation of tao on a root validator.

• For every subnet the validator is active: stakeholders will earn a proportion of the rewards.

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Root staking is similar to pre-dTao staking

Pre-dTao, staking was done to a validator.

• Rewards were earned across all subnets the validator was active.

dTao: this is staking to a validator on root.

The difference is that root staking in dTao will have lower returns over time, as stakeholder emission is split between alpha and root stakeholders (see Emissions: Root vs. Alpha Stake

Root Emission Options

There are a number of ways to receive your root stake rewards

Root emissions as tao

This is the default option. All earnings earned inside a subnet will be sold from alpha to tao, and the tao will be auto-compounded - added to the existing stake on root.

This is referred to as a Root Claim Swap.

Root Emissions as alpha

Stakeholders may elect to change the way they receive their emissions.

Root stake Keep keeps the alpha earnings as subnet stake on each subnet. The alpha earnings wil be staked on the subnet and autocompound as alpha stake.

Root emissions claim options

Auto:

This is the default option. Emissions are regularly awarded to the stakeholder.

Manual:

Manual transfer of emissions to the stakeholder.

Calculating Root Emission

Step 1: The validator take is removed from the root emission and awarded to the validator's hotkey. The validator's emission can either be swapped to root, or staked as alpha on the subnet.

Step 2: The total alpha for stakeholders is divided as a weighted average amongst all stakeholders based on the amount of root stake.

Step 3a: If the stakeholder has opted to Root Claim Swap, the alpha is sold through the subnet pool and awarded as tao.

Step 3b: If the stakeholder has opted to Root Claim Keep, the alpha staked to the same validator on the subnet.