The miner registers only when the live reg cost is at or below this. If it's higher now, it waits in the background until it drops.
A hotkey under the wallet you'll choose next. It can be new or existing (must not already be registered on that subnet).
Confirm & sign
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The coldkey password is read from backend/wallet_secret.py (which you fill in yourself) — it's never entered here or sent over the network. This action spends τ from the coldkey when the reg cost meets your target.