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56 changes: 12 additions & 44 deletions docs/dynamic-tao/dtao-faq.md
Original file line number Diff line number Diff line change
@@ -1,45 +1,15 @@
---
title: "Dynamic TAO FAQ"
---
---

import ThemedImage from '@theme/ThemedImage';
import useBaseUrl from '@docusaurus/useBaseUrl';

## Timing / Rollout

### What is the rollout timeline for Dyanmic TAO? What determines the timing?

Dynamic TAO was introduced by proposal, approved by senate vote, and deployed as an upgrade to Bittensor main network on February 13, 2025 after a year of research, development, and testing.

Any subsequent modifications require a new proposal to be introduced to a new upgrade following the same process.

### How will Dynamic TAO take effect?

The state of the network as far as ledger balances and consensus power will not change immediately upon upgrade; it will occur gradually as subnet specific alpha tokens are emitted and staked into circulation.

In Dynamic TAO, validator *weight*—a critical score that determines consensus power as well as the allocation of emissions—is determined by a combination of TAO and alpha token holdings. When Dynamic TAO is initiated, there will be no alpha in circulation, so validator's stake weights will be entirely determined by their share of TAO stake.

But far more alpha than TAO is emitted into circulation every block. As a result, over time there will be more alpha relative to TAO in overall circulation, and the relative weight of a validator in a given subnet will depend more on their alpha stake share relative to their share of the TAO stake on Subnet Zero.

In order to hasten the process of alpha gaining the majority of stake power in the network, the contribution of TAO stake to validator stake weight is reduced by a global parameter called *TAO weight*. Currently, this is planned to be **18%**, in order to achieve a weight parity between TAO and total alpha in approximately 100 days.

See [Emissions](../emissions.md)

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<br />
## General

### Will there be a cap on alpha currency?

Yes. There is a hard cap of 21 million for any subnet's alpha token, the same as for TAO itself. Alpha tokens follow a halving schedule as well.
Yes. There is a hard cap of 21 million for any subnet's alpha token, the same as for TAO itself. Alpha tokens follow a halving schedule as well.

At the time of writing, 2 alpha tokens per subnet will be emitted each block, while only 1 TAO is emitted and shared across the whole network.

Expand All @@ -49,23 +19,23 @@ At the time of writing, 2 alpha tokens per subnet will be emitted each block, wh

Instead of staking TAO to a validator, in Dynamic TAO, you stake to a validator on a specific subnet. This can be either a mining subnet (most subnets) or the unique root subnet, a.k.a. Subnet Zero.

- When you stake on a mining subnet, you exchange TAO for a dynamic token, the *alpha* of the subnet on which the validator is working, and stake that into the validator's hotkey.
- When you stake on a mining subnet, you exchange TAO for a dynamic token, the _alpha_ of the subnet on which the validator is working, and stake that into the validator's hotkey.

- When you stake on the root subnet, you stake TAO for TAO. Your emissions are TAO.

### What is the risk/reward profile of staking into a subnet?

Each new subnet has its own token, referred to as its alpha. When you stake into a validator within a given subnet, you exchange TAO for that subnet's alpha. When you unstake from the validator in that subnet, you exchange the alpha for TAO. Staking and unstaking is therefore sensitive to the price of the alpha. This price of a subnet's alpha is the ratio of TAO in its reserve to alpha in reserve.
Each new subnet has its own token, referred to as its alpha. When you stake into a validator within a given subnet, you exchange TAO for that subnet's alpha. When you unstake from the validator in that subnet, you exchange the alpha for TAO. Staking and unstaking is therefore sensitive to the price of the alpha. This price of a subnet's alpha is the ratio of TAO in its reserve to alpha in reserve.

Staking TAO into a subnet essentially exchanges TAO for that subnet’s alpha token. To exit value, alpha must be exchanged back for TAO at the going rate.

Held stake (alpha tokens) may increase or decrease in TAO value as the price of the alpha changes.

### How do emissions to root subnet/Subnet 0 stakers work?

**Network-wide Impact**: Your stake contributes weight across all subnets where your validator operates. This means your stake extracts emissions from multiple subnets simultaneously. See [Validator stake weight](dtao-guide#validator-stake-weight) for more details.

**Proportional emission and TAO weight**: TAO and alpha are emitted to a validator's stakers in proportion to the validators' holdings in each token. See [Emission in Dynamic TAO: Extraction](../emissions.md#extraction)
**Network-wide Impact**: Your stake contributes weight across all subnets where your validator operates. This means your stake extracts emissions from multiple subnets simultaneously. See [Validator stake weight](../subnets/understanding-subnets.md#validator-stake-weight) for more details.

**Proportional emission and TAO weight**: TAO and alpha are emitted to a validator's stakers in proportion to the validators' holdings in each token. See [Emission: Extraction](../emissions.md#extraction)

### Can users transfer alpha tokens (subnet tokens)?

Expand All @@ -89,7 +59,6 @@ Subnet Zero is sometimes called the root subnet, since it sort of replaces the r

The process of registering a subnet in Dynamic TAO will be very similar to the process of registering a submit previously, except that the cost to register the subnet is now burned, rather than being a lock cost returned to the subnet creator on de-registration. This is because subnets are not deregistered in Dynamic TAO.


### What is the cost of creating a subnet?

Subnet registration cost is dynamic. It doubles when a subnet is registered, and decreases at a slow rate such that the price halves after 38,880 blocks&mdash;roughly five and a half days. This implies that, if the demand for new subnets is steady, one should be created roughly every five and a half days.
Expand All @@ -98,7 +67,7 @@ Subnet registration cost is dynamic. It doubles when a subnet is registered, and

Each validator’s weight in the subnet is a function of the alpha staked to them on the subnet, plus the TAO staked to them in Subnet Zero, with the value of the TAO being multiplied by the TAO weight, which is between 0 and 1.

See [validator stake weight](./dtao-guide.md#walidator-stake-weight).
See [validator stake weight](../subnets/understanding-subnets.md#validator-stake-weight).

### What happens when a subnet is abandoned?

Expand All @@ -112,7 +81,7 @@ Currently, the protocol does not automatically deregister subnets. Abandoned sub

**No**. Emissions are calculated by protocol logic (e.g., in `run_coinbase.rs`) and are based on network-wide parameters. Subnet founders cannot arbitrarily print tokens&mdash;emission follows the same consistent rules across all subnets.

See [Emissions in Dynamic TAO](../emissions.md)
See [Emissions](../emissions.md)

### What happens to previously locked registration costs from pre-Dynamic-TAO subnets?

Expand All @@ -130,6 +99,5 @@ Miners/validators may need to watch markets (token prices, volumes) to optimize

## Where can I find more technical details right now?

- Codebase: Refer to the Bittensor codebase, especially `run_coinbase.rs`, which calculates emissions logic for subnets and the root network.
- Codebase: Refer to the Bittensor codebase, especially `run_coinbase.rs`, which calculates emissions logic for subnets and the root network.
- The [Dynamic TAO White Paper](https://drive.google.com/file/d/1vkuxOFPJyUyoY6dQzfIWwZm2_XL3AEOx/view)

114 changes: 0 additions & 114 deletions docs/dynamic-tao/dtao-guide.md
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14 changes: 0 additions & 14 deletions docs/subnets/understanding-subnets.md
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Expand Up @@ -95,20 +95,6 @@ This exchange rate can change every block when staking or unstaking or emissions

</details>

## Emissions in Dynamic TAO

Liquidity is steadily emitted into the Bittensor token economy according to an algorithm intended to foster growth while stabilizing prices and protecting them from manipulation.

Each block:

- the chain emits TAO and injects it into the TAO reserves of the subnets.
<!-- (how much TAO, is this still 1/block for the whole network ???) -->
- the chain emits alpha tokens at twice the base alpha emission rate (which starts at 1 α/block and follows the same halving schedule as TAO). These emitted alpha tokens are allocated between:
- the subnet's alpha reserve (increasing available liquidity)
- alpha outstanding (incentives for miners, validators, and subnet creators)

See the main article: [Emissions in Dynamic TAO](../emissions.md)

## Decentralized evaluation of subnets

The relative value or _weight_ of subnets within Bittensor is critically important as it determines emissions to different subnets and their participant miners and validators. Prior to Dynamic TAO, relative weight among subnets within the Bittensor network were determined by Yuma Consensus over the evaluations of the Root Network validators. This gives a fundamentally centralizing role to the holders of Root Network validator keys.
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