How does UNITAO subnet work?

UNITAO subnet is defined by the Incentive Mechanism it supports. The incentive mechanism is unique to the subnet.

Entities in the subnet, called UNITAO Miners, each perform a useful task, i.e., solve some problem, as defined in the incentive mechanism of the subnet.

Separate entities in the subnet, called UNITAO validators, each independently evaluate the task performed by the subnet miners.

The subnet validators then each express their opinion on the quality of the miners. These opinions of the subnet validators are then provided as a collective input to the Yuma Consensus mechanism on the blockchain by using the Bittensor API.

The output of the Yuma Consensus mechanism from the blockchain will then determine how the rewards for the subnet miners and subnet validators are to be distributed. The rewards are in the form of TAO tokens.

What is the incentive for users to be a miner or a validator?

Your incentive is that you earn TAO. It works like this. Every 12 seconds a new TAO is created. This single TAO is then distributed among the 32 subnets (include UNITAO). So every 12 seconds each subnet gets a fraction of this newly-created TAO, based on the performance of the subnet.

  • 18% of it goes to the subnet owner.

  • 41% goes to subnet validators (this is called dividend).

  • 41% goes to the subnet miners (this is called incentive).

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