> For the complete documentation index, see [llms.txt](https://docs.tensorusd.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tensorusd.com/user-type/validator.md).

# 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](<https://github.com/TensorUSD/subnet/blob/feat/refund/docs/validator.md&#xA;>)

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 \`

&#x20; `--netuid 421 \`

&#x20; `--subtensor.network test \`

&#x20; `--wallet.name <wallet_coldkey> \`

&#x20; `--wallet.hotkey <wallet_hotkey> \`

&#x20; `--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           |

***

<br>


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