Alphanomics | Notion

Bittensor dedicates 41% of alpha emissions to subnet miners. SN98 implements a dynamic miner burn mechanism to ensure miner rewards remain aligned with the real economic output of the subnet.

This incentive alignment ensures miners have direct economic exposure to subnet performance — their compensation is explicitly tied to on-chain revenue.

Parameters

Emissions / revenue ratio — a specified ratio (e.g. 1:1), meaning for each USD worth of fees earned, miners receive 1 USD worth of alpha tokens. This ratio can be adjusted as subnet revenue grows.
TWAP USD price of the alpha token — used to calculate how much alpha is emitted or burned
TWAP USD price of subnet revenue — accounting for revenue earned in volatile tokens

Emissions are dynamically adjusted based on subnet revenue and the USD price of the alpha token to keep miner rewards tightly aligned with real economic output.

Miner Compensation

SN98 uses a Winner-Takes-All (WTA) compensation model. Miners that provide the best ranges for a given job earn rewards proportional to the fees generated by vaults implementing those strategies.

What is a Job?

In practice, a miner's job consists of:

A token pair (e.g. xTAO / USDC)
An inventory (e.g. 10,000 USD / 50 xTAO)
A strategy (e.g. Protocol Owned Liquidity)

Jobs generate revenue. An xTAO vault generates revenue in xTAO and USDC, while a BID vault generates revenue in BID / wBID.

Example

Miner A wins the xTAO / USDC vault
Revenue generated by the vault: 1,000 USD
Miner earnings: 1,000 α (= 1,000 USD at current TWAP)

<aside> 📊 Miner compensation is directly tied to real on-chain revenue — not speculative token emissions.

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