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Some subnets are evolving their economic models. Instead of rewarding many 'miners' for contributing compute power, they are moving to a system where miners compete to submit the best-performing AI model. This focuses the network's value on intellectual property and innovation rather than commoditized hardware.
Bitcoin's "proof of work" is criticized for its massive, non-productive energy use. A novel concept is to use AI inference compute as the work itself. This "productive proof of work" would secure a cryptocurrency network while simultaneously generating valuable AI-driven outputs, aligning energy consumption with useful computation.
Score addresses the high cost of AI vision by using a decentralized network of miners to "distill" massive, general-purpose models (e.g., 3.4GB) into hyper-specialized, tiny models (e.g., 50MB). This allows complex vision tasks to run on local CPUs, unlocking use cases previously blocked by prohibitive GPU costs.
The network's core advantage isn't just distributed compute; it's the economic incentive mechanism. Subnet token emissions subsidize R&D by paying a global, competitive workforce of 'miners' to continuously enhance AI models, creating a powerful innovation engine that's difficult for centralized companies to replicate.
BitTensor's model allows skilled developers anywhere to contribute to AI projects and earn significant token rewards, regardless of location or access to venture capital. This parallels how Bitcoin mining created a market for underutilized, "stranded" energy sources.
Platforms like BitTensor allow subnet creators to fluidly adjust their incentive mechanisms. For example, the Hippias storage network can increase rewards for speed to encourage its distributed 'miners' to improve network throughput on demand.
Instead of solving arbitrary math problems, BitTensor's blockchain incentivizes miners to contribute to building and improving AI products on its subnets. This shifts from proof-of-work for security to proof-of-work for tangible product creation, funded by token emissions.
Templar's Sam Dare clarifies that BitTensor (Tau) abstracts the blockchain to its most fundamental layer: incentives. Instead of focusing on smart contracts or value transfer, it provides a framework for creating "incentive games" where self-interested miners are compelled to produce valuable outputs, like training an AI model, to earn rewards.
Bittensor subnets operate like continuous, global competitions where miners constantly strive to solve challenges set by subnet owners, and validators score their performance. This "hackathon that never sleeps" model creates a relentless, decentralized engine for innovation and optimization across diverse AI applications like drug discovery and social media.
Templar's decentralized AI training model doesn't require specific GPUs. Instead, it defines the validation criteria for a correct output. This forces miners to find the most economically efficient hardware and software combination to solve the problem, a process Sam Dare calls "emergence," where optimal solutions arise from the incentive structure itself.
BitTensor's subnet model creates a decentralized marketplace for digital services like lead generation. Anonymous "miners" compete to provide the best data, while "validators" ensure quality. This adversarial system continuously drives down the price of the service, aiming for true commodity pricing.