Metahash is a decentralized over-the-counter (OTC) layer that allows dTAO holders swap $ALPHA directly for $META, eliminating slippage and price impact on their native subnets.
All incoming $ALPHA is routed to the Treasury, where it can be used to
- provide liquidity to other subnets (Uniswap V3)
- execute external OTC trades for a margin
- consume digital commodities
- accrue yield (APR)
- serve as a liquidity layer for derivative platforms in Bittensor
- Others...
- Participation open to anyone, not just "miners" of other subnets.
- Specially usefull for miners and subnet owners.
- Swap $ALPHA for $META via seamless OTC trades.
- Dodge slippage and pool price impact on origin subnets in exchange of a discount.
- Exposure to a decentralized suite of OTC strategies.
- Portfolio of diversified, discounted $ALPHA.
- Provides liquidity across Bittensor.
- Serves as a “stimulus check” that allows Bittensor to bet on itself.
Metahash operates on a structured, three-phase cycle that starts at the beginning of each epoch. Each epoch functions like an “auction” for $META, in which miners compete to acquire it.
- Track alpha transfers from the previous epoch
- Aggregate total per miner
- Apply slippage-adjusted to valuation
- Adjust base on bond curve
- Give miners their corresponding $META by setting weights
- Miners prepare for the auction
- Validators finalize reward calculations and weight setting of previous epoch
- In future iterations, this period will be use to notify miner of auction details
Auction opens at block 50 each epoch.
- Discount miners give starts low and increases as alpha reach the treasury
- Bonding curve determines the discount each miner is accepting when transfering the alpha
- Early miners receive higher rewards
- Auction state (alpha already sent) is on-chain and miners can track it
- Auction ends at last epoch block
Each epoch, Metahash distributes its mining emissions via 'auction':
B = 0.41 × 361 = ~148 $META per epoch
Where 361 is the number of blocks per epoch, and 0.41 is the mining emissions
- Miners accept the OTC deal by doing an alpha transfer on-chain"
- Random ordering inside each block makes miner rewards unpredictable.
- Equal reward across the epoch leads to last-second bidding wars.
- Miners sending alpha on early blocks depend on late block activity.
| Benefit | Why it Matters |
|---|---|
| Early rewards | Higher value for alpha submitted early. |
| Known discount | Miners can see the live discount at any moment. |
| Smooth path | Block-level randomness remains, but the overall trend is predictable. |
| Uniform Price | Bond-Curve Price | |
|---|---|---|
| Mechanics | Same reward for every alpha unit. | Value of each alpha decreases as more alpha arrives |
| Miner incentives | Favors guessing & collusion. | Rewards speed & individual optimisation. |
| Subnet risk | Unlimited volatility. | Upside and downside capped; unused budget burns. |
Uniform Valuation of alpha creates a dynamic where miners compete TOGETHER agains the subnet trying to make the subnet over pay.
Bond Curve valuation limits upside and downside. Subnet now is limited on how much "profit" it can generate but it makes miners compete against EACH OTHER and subnet neves losses money as $META is burned in the case of under-subscription of the auction (not enough alpha was sent to compensate mining emissions value)
Any unspent SN73 is burned to preserve token value.
| Symbol | Description |
|---|---|
m |
SN73 tokens already issued in epoch |
C₀ |
Starting rate (top of bonding curve) |
β |
Decay factor |
r_min |
Minimum rate floor |
Several attack vectors have already been assessed:
- Sending $META is Forbidden: Cool concept but ponzi. Forbidden.
- Slippage Guards: Excessive slippage zeroes the alpha value
- Anti-Timing Attacks: Epoch-average calculation in pricing and slippage
- Undersubcription in Auctions: Unused SN73 is permanently burned
To know more about the future of Metahash and next iterations pls check this!
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