Targon (SN4)

Tokenomics & Utility

SN4 as a subnet “alpha” token

In Bittensor’s Dynamic TAO economy, each subnet has its own currency—called its “alpha” token. SN4 is the alpha token for Subnet 4 (Targon). Alpha tokens exist alongside TAO, the main Bittensor token. Together they form an on‑chain automated market maker (AMM) for each subnet with two reserves: TAO and the subnet’s alpha. The ratio between these reserves determines the subnet token’s price in TAO. (docs.bittensor.com)

Supply, emissions, and halving

Bittensor’s documentation sets the maximum supply for each subnet alpha token at 21 million units. New alpha is emitted every block at twice the base alpha rate, following the same halving schedule as TAO. Emissions are split between the subnet’s alpha reserve (liquidity) and “alpha outstanding” (stake held by miners, validators, and the subnet creator). In parallel, TAO emissions flow into subnet TAO reserves. This steady injection of both TAO and alpha supports market depth while rewarding the participants who make the subnet valuable. (docs.bittensor.com)

Staking, pricing, and incentives

Stakers acquire SN4 by staking TAO into Subnet 4’s reserve. When they exit, they redeem SN4 back for TAO at the prevailing reserve ratio. Because the price depends on TAO‑in‑reserve relative to alpha‑in‑reserve, the act of staking and unstaking itself moves the market—similar to any AMM. This design lets TAO holders “vote with their stake” on which subnets deserve more emissions. More stake and stronger demand tend to direct more rewards to Subnet 4’s validators and miners, who in turn work to maintain service quality. (docs.bittensor.com)

What SN4 is used for

• Validator and miner collateral: SN4 functions as stake inside Subnet 4. Validators’ stake weight—and thus their share of emissions and voting power—depends on their alpha stake plus a weighted contribution from any TAO stake. (docs.bittensor.com)
• Market signal: The SN4/TAO reserve ratio expresses market demand for Subnet 4’s service. As users and builders rely more on Targon’s API, SN4 markets reflect that demand. (docs.bittensor.com)
• Liquidity for subnet operations: Emitted SN4 partly tops up reserves to keep trading smooth for stakers and participants. (docs.bittensor.com)

Note that Targon’s customer billing for API use is handled at the service layer (for example, “pay per million tokens” for inference), while SN4 lives on the subnet’s incentive layer. This separation keeps the developer experience straightforward while allowing the on‑chain economy to coordinate supply. (targon.com)