Validator

What Validators Do

Validators observe the TensorUSD auction contract on-chain, track which miners win liquidation auctions, and use those results to assign weights to miners on the Bittensor network. Those weights determine each miner's share of TAO emissions each epoch.

👉 https://github.com/TensorUSD/subnet/blob/feat/refund/docs/validator.md

Every AuctionFinalized event is recorded. At the end of each epoch, the validator scores every miner's wins using this formula:

bonus_ratio = min((winning_bid - debt_balance) / debt_balance, 0.20)

reward = 1.0 + bonus_ratio

Winning Bid vs Debt	bonus_ratio	reward
Exactly debt (bid = debt)	0.00	1.0
10% over debt	0.10	1.1
20%+ over debt (capped)	0.20	1.2

• Minimum reward per win: 1.0

• Maximum reward per win: 1.2

• Multiple wins in the same epoch accumulate:

total_reward(miner) = sum of reward(win_i) for all wins in tempo window

---

Weight Setting

Scores are smoothed over time using an exponential moving average (EMA), then submitted to the chain as weights:

score = α × new_reward + (1 - α) × previous_score

weights = L1_normalise(scores) → submitted via subtensor.set_weights()

Each miner's TAO emission share is proportional to their normalised weight. Miners that haven't won any auction in the epoch get no weight increase — their score decays toward zero via the EMA.

---

How to Run

uv run neurons/validator.py \

--netuid 421 \

--subtensor.network test \

--wallet.name <wallet_coldkey> \

--wallet.hotkey <wallet_hotkey> \

--logging.info

Flag	Description
--netuid 421	Subnet UID to validate on
--subtensor.network test	Connect to the testnet
--wallet.name test	Name of the local wallet
--wallet.hotkey default	Hotkey to use for this validator
--logging.info	Enable info-level logs

---