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Description
Bug Overview
This is a docs bug:
The “Alpha reserve injection” section still uses the legacy price-based TAO injection formula when deriving Δαᵢ, even though the earlier section has switched entirely to the new flow-based TAO injection model (Taoflow).
This causes the derivation to appear inconsistent and mathematically incorrect when read in the context of the updated flow-based Δτᵢ.
Bug Description
In the docs, under Alpha reserve injection, the following derivation appears:
Δαᵢ = Δτᵢ / pᵢ
When we fill in this equation with the previous formula for Δτᵢ,
the price pᵢ cancels out, giving:
Δαᵢ = Δτ̄ / Σⱼ pⱼ
However, this “pᵢ cancels out” step is only valid if the “previous formula for Δτᵢ” is price-based, not flow-based. But current protocol behavior as of November 2025) Δτᵢ is defined by the new flow-based emission model:
Δτᵢ = T emitted per block * zᵢ (**flow, EMA-smoothed).
which depends on:
- EMA of net TAO flows
- offset + clipping
- power normalization
- and has no dependence on price pᵢ
Therefore, you cannot substitute the flow-based Δτᵢ into
Δαᵢ = Δτᵢ / pᵢ
and get the cancellation shown in the docs.
This creates a contradiction:
- The alpha injection section still assumes Δτᵢ ∝ pᵢ
- But the TAO injection section (above it) has already replaced Δτᵢ with the flow-based version
This makes readers think either:
- Alpha injection should use Δτᵢ(flow): in which case price does not cancel, or
- A synthetic / price-based Δτᵢ is intended for α injection, separate from the flow-based Δτᵢ(real).
Currently the docs mix both models, which is confusing and mathematically inconsistent.
Suggested Fixes and Relevant Docs
Update the derivation to reflect the flow-based Δτᵢ if that is the intended behavior.