4. Parent / child hotkeys

Parent hotkeys are validators that do not run infrastructure in a subnet. They use their stake as a parent hotkey to a validator running infrastructure (the child hotkey).

Parent hotkeys have all of the same abilities as child hotkeys.

• Delegators may stake alpha on a parent hotkey inside a subnet.
• Delegators staked on root receive root stake from parent hotkeys.

Calculating emissions for Parent/Child hotkeys

The validator running the child hotkey (running the validation infrastructure) can impose a child hotkey take on any validator running a parent hotkey. In the screenshot above the child hotkey take is set at 4.5%.

Step 1: Find the tao and alpha staked to the hotkey

First, we determine the amount of tao and alpha each validator has on this hotkey:

• Taostats has 8/9 of its stake
• parent_1 has 50% of its stake on this child hotkey
• parent_2 has 100% of its stake on the child hotkey.

Step 2: Determine the total stake of each validator

tao_weight = 0.18

Step 3: Find the Percentage of total stake, and apply it to the dividends.

The 0..15 dividends are split based on the % of total stake for each validator

Step 4: Apply child hotkey take to parents

Taostats has a 4.5% child hotkey take. Remove 4.5% of the dividends from each parent, and apply the proceeds to taostats.

0.000102 and 0.003372 are taken from parent_1 and parent_2, and added to taostats' final dividends.

Step 5: Repeat this math for all child hotkeys.

Taostats has 1/9 of its stake on another validator.

Parent_1 has 50% of its stake on other validators.

Sum these dividends for all hotkeys in a subnet to get the final dividends for a validator on a subnet.

What's next

Step 5 — Root vs alpha split: the validator's remaining dividends are divided into a root proportion and an alpha proportion, then distributed to stakeholders (root / alpha).