Subnet Emissions (Alpha)

In this series of pages, we’ll walk through the process of how tao and alpha are distributed to participants of a subnet.

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

Step 2: Alpha Emission: Alpha is emitted per subnet per block, split between the Subnet Pool (alpha_in) and subnet participants (alpha_out). alpha_in is capped at root_proportion × alpha_emission per block (de-facto the subnet’s root_proportion, since alpha_emission = 1); alpha_out has a max of 1 alpha/block.

Step 3: Split alpha_out to SN owner/miners/validators. (1 alpha/block)

• Subnet owners receive 18% of subnet emission
• Emission for Miners: Miners receive 41% of emissions.
• Emissions for Validators: Validators receive 41% of emissions, but this is also divided amongst stakeholders.

Step 4: Emission for Parent/Child Hotkeys: Sum the rewards across all parent and child hotkeys for each validator.

Step 5: Emissions: Root vs. Alpha Stake: Divide the validator’s dividends into root and alpha proportions.

Step 6: Award stakeholder rewards to root & alpha stakeholders:

• Stakeholder Emissions: Root
• Stakeholder Emissions: Alpha