Subnet

Think of a subnet as specialized groups in Bittensor focused on one type of AI task. It's like having different teams in a big project, each working on a specific part. For example, one subnet might work on understanding pictures. Another subnet focuses on translating languages. Subnets help Bittensor tackle many AI challenges at once. They organize the work so people can focus on what they're good at.

Each subnet has its own miners and validators , all working together on that subnet's particular goal. These participants form a collaborative network. Validators assess the quality of miners' work. They distribute rewards accordingly.

The subnet's structure mirrors the human nervous system. Similar terminology describes how information flows through the network. Each participant in a subnet acts as a neuron, which is simply a computing node in the network. These neurons communicate with each other through:

• Synapses: Packets of information that neurons exchange
• Axons: The receiving end of a neuron (like a server) that accepts incoming messages
• Dendrites: The sending part of a neuron (like a client) that delivers messages to other neurons

Every block (12 seconds), when a new TAO token is created, it gets distributed among the subnets based on their performance.

Within each subnet, the rewards are allocated as follows:

• 18% goes to the subnet owner
• 41% is distributed to subnet validators
• 41% is given to subnet miners

This distribution ensures fair compensation for all participants. It also incentivizes both validation and mining activities.

Within each subnet, participants collaborate to work towards the subnet's task. Yet at the same time, miners compete to provide the best solution. They earn bigger rewards for outperforming other miners. This competition drives innovation and excellence within the subnet.

Creating a subnet requires locking TAO tokens. These tokens are fully refundable upon subnet deregistration. The registration cost starts at 100 TAO and increases based on network demand and registration frequency. Only one subnet can be registered every 7,200 blocks (equal to one day). The deposit mechanism serves two purposes. First, it prevents network spam. Second, it ensures that subnet owners have a significant stake in the network's success.