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

• For every subnet the validator is active:
  • Stakeholder will earn a proportion of the rewards
• As a stakeholder, you can decide:
  • Your subnet emissions are immediately sold to tao and added to your stake balance on root.
  • Your subnet emissions remain as alpha, staked to the validator in that subnet.
• By default, root stakeholder emissions will follow option .
  • Every stakeholder can change this setting by

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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

Calculating Root Emissions:

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How we got here

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 Emission

After completing the prework steps, we have the alpha token that is to be distributed amongst our stakeholders.

Step 1: Convert the alpha to tao. See Alpha Tokens for details. There will be Slippage in this sale, but due to the small amount of alpha being sold, the amount will be minimal.

Step 2: The tao is divided by a weighted average of how much stake is on root for each validator.

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Example

0.01 tao is to be paid out to validators on the subnet.

taostats has 1M tao staked, of a total 3M tao staked.

Taostats' proportion is 1/3, so taostats will received 1/3 * 0.01 = 0.0033n tao