Root Claim

Root Claim is a feature that lets you decide how to receive dividends when you stake on the root subnet. Your validator earns ALPHA from all the subnets it validates, and you receive a proportional share of those dividends. Root Claim allows you to decide whether you keep those ALPHA in their original form or automatically convert them to TAO.

When you stake TAO on the root subnet with a validator , you become eligible to receive ALPHA dividends from every subnet that validator validates. These dividends accumulate automatically. Root Claim is the feature that lets you choose what happens to those dividends when you claim them.

CLAIMING OF DIVIDENDS

This mechanism is only relevant for accounts that stake TAO to the root subnet. ALPHA dividends for those directly staking TAO into a subnet, are being given out directly. There is NO claiming for non-root staked accounts.

You can decide between to types of claiming your accumulated dividends (from root). The "Swap"-Claim converts your accumulated ALPHA into TAO at the current ALPHA price, then automatically stakes the TAO on root. This is the default option and reflects the behavior that existed before Root Claim was introduced.

The "Keep"-Claim stakes your ALPHA directly on the subnets that generated it. If the ALPHA price rises, your subnet stake becomes worth more TAO. If the ALPHA price falls, your ALPHA stake becomes worth less. This type gives you exposure to subnet ALPHA tokens rather than converting back to TAO, without exposing your initially staked TAO on the root subnet.

The TAO tokens will remain staked on root, while building up the ALPHA stakes on subnets. By choosing to keep ALPHA tokens on subnets, it lowers the effects of the sell pressure caused by the default behavior of converting them into TAO (which contributes to lowering the ALPHA prices).

The blockchain automatically selects accounts in rotation and processes their claims each block . The blockchain only processes up to 5 different accounts each block. Depending on the total number of staking accounts, this can lead to different claim frequencies. At the time of writing, it could take up to 2 days for your turn to be claimed automatically.

Those who cannot wait are allowed to claim manually. You can choose up to 5 subnets to claim dividends from. Your claim type preference "Swap" or "Keep" applies whether you claim manually or automatically.

THE MINIMUM THRESHOLD

Automatic claims have a minimum threshold of 0.0005 ALPHA. If your accumulated dividends are lower than this amount, they won't be eligible for automatic claiming. This prevents small transactions from bloating the blockchain. If you want to claim manually, you will be allowed to claim ALPHA dividends below this threshold.