Incentive Mechanism

Each subnet has its own set of rules that guide how miners and validators work together. These rules define what tasks miners should do and how validators rate their work. The system rewards good performance with TAO tokens and discourages poor work through lower scores.

Every subnet's incentive mechanism needs three main parts. The subnet itself defines how validators and miners talk to each other. The subnet task assigns work, which miners must do. The reward model shows validators how to score miner outputs.

Each subnet focuses on a specific kind of work. The subnet owner picks tasks that match their subnet's goals. A text subnet might have miners answer questions. A storage subnet could have miners store files. The tasks should copy real-world use cases that people need.

Validators turn miner responses into number scores called weights . Better work earns higher weights and thus more rewards. The system has no upper limit on scores. This pushes miners to keep getting better at their tasks.

The incentive mechanism creates healthy competition among miners. They must keep improving to earn good scores. If they find shortcuts or try to cheat, they earn fewer rewards than honest miners who do quality work.