Model Overview

This model quantifies how miner M(t) and validator V(t) fluctuations ripple through the reward pool R(t) and answer quality Q(t). Parameters are calibrated to three-month logs from a comparable public TAO subnet; trajectories that follow are illustrative:

Parameters & Variables:

• M(t): Number of active miners at time (t)

• V(t): Number of active validators at time (t)

• R(t): Reward distribution at time (t)

• Q(t): Quality of AI responses at time (t)

• λ: Rate of miner activity

• μ: Rate of validator activity

• σ: Standard deviation representing the variability in reward distribution

Drift λ = 0.002 day⁻¹, μ = 0.001 day⁻¹. Volatility κₘ = 0.25, κᵥ = 0.15, σ_R = 10. Miner/validator noise correlation ρ ≈ 0.2 (regional events affect both)