Skip to content

[BUG] Alpha Injection Docs Still Use Legacy Price-Based Δτ Formula (Conflict With New Flow-Based Emissions Model) #162

@chrismaresca

Description

@chrismaresca

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:

  1. The alpha injection section still assumes Δτᵢ ∝ pᵢ
  2. But the TAO injection section (above it) has already replaced Δτᵢ with the flow-based version

This makes readers think either:

  1. Alpha injection should use Δτᵢ(flow): in which case price does not cancel, or
  2. 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.

  1. Flow-Based Emissions (Taoflow)
  2. Alpha Reserve Injection (problematic derivation)

Metadata

Metadata

Assignees

No one assigned

    Labels

    No labels
    No labels

    Type

    No type

    Projects

    No projects

    Milestone

    No milestone

    Relationships

    None yet

    Development

    No branches or pull requests

    Issue actions