Prototype preview · concept demonstration · figures are illustrative models, not financial advice
The SN20 engine

One engine. Four winners.

SN20 isn't a one-time launch. Every subnet it graduates feeds a single self-reinforcing engine — and that engine pays out to four distinct parties at once: the subnet, its holders, its crowd funders, and its incubation teams.

PARTY_01 SN20 — the subnet → multi-source permanent buy & burn → graduate subnet emissions PARTY_02 · THE ANGEL SEAT SN20 token holders → airdrops from every graduate → in perpetuity, no picking winners PARTY_03 Crowd funders → permanent per-block emissions → from the proven subnet they backed PARTY_04 Incubation teams → slot, runway & full program support → crowdfunded launch at graduation SN20 BREEDING GROUND the flywheel
↓ See each party in detail below
SN20 engine & token holders
Participating party
Value distribution
Who gets what

Four parties. One engine.

The SN20 flywheel isn't zero-sum. Each turn of the engine pays out to four distinct groups at the same time — here is exactly what each one receives.

PARTY_01

SN20 — the subnet

  • Multi-source permanent buy & burn — selection fees and graduate carry continuously buy SN20 on-market and destroy it.
  • Graduate subnet emissions — SN20's carry position in every graduate pays emissions back to the engine, forever.
PARTY_02 THE ANGEL SEAT

SN20 token holders

  • Airdrops from every graduate — distributions from all graduating subnets land directly with holders.
  • In perpetuity — the airdrops never stop, and the portfolio of graduates only grows.
  • No picking winners — one position is exposure to every subnet the program ever graduates.
PARTY_03

Crowd funders

  • Permanent per-block emissions — backing a team through its crowdloan earns a continuous on-chain emissions stream.
  • From a proven subnet — funders earn from a graduated, validated subnet, not a speculative idea.
PARTY_04

Incubation teams

  • A slice of SN20 — one of eight slots, giving an idea a real foothold on the network.
  • Operating runway from day one — a team mines its own incubation slot, and those emissions fund the build through the program.
  • Full support — advisory, validator, dev and marketing help across the program.
  • A crowdfunded launch — graduation delivers both the subnet slot and the capital to run it.
The mechanics

Two events. Where the value goes.

The engine is fed at two distinct moments — when a team is selected, and when a team graduates. Here is exactly what happens at each.

$25K

Selection → buy & burn

When a team is selected and pays the $50K selection fee, half of it — $25K — buys SN20 on-market and destroys it. A permanent reduction in supply, every time a slot is filled.

$50K fee→½ buys SN20→burn
15–25%

Graduation → the carry splits three ways

When a team graduates, SN20 holds a 15–25% share of the new subnet's emissions. That carry is split into three streams — one kept, two returned to the ecosystem.

50%
Kept by SN20

Half the carry sustains the operation — the validation, the infrastructure, the next intake.

40%
Airdropped to holders

Forty percent goes straight to SN20 token holders as airdrops from every subnet it graduates.

10%
Sold to buy & burn

The final tenth is sold to buy SN20 on-market and destroy it — more permanent supply reduction.

Model it yourself

Watch the flywheel compound.

Move the inputs. See what a year of graduations does to the value returned to SN20 holders. These are illustrative figures, not guarantees.

// Inputs
Graduating subnets / year 6
A full intake is 8. Not every team graduates — model conservatively.
Teams paying the $50K fee 4
Fee-payers give SN20 a 15% carry; non-payers give 25%.
Avg. emissions / subnet / yr $2.0M
Total yearly emissions a typical graduated subnet produces.
TAO price assumption
Annual value returned to SN20 holders
$1.6M
airdrop + buy & burn pressure, per year
Holder airdrop / yr
$1.2M
Buy & burn / yr
$385K
Cumulative value to holders — years 1–4 (carry compounds as graduates stack)
// carry from every prior intake keeps paying — year 4 collects from years 1 through 4 at once.
Why it works

What makes this a genuinely rare design.

Most subnet tokens accrue value one way. SN20 stacks three reinforcing streams — and offloads its single biggest cost to the market.

01 — CAPITAL EFFICIENCY

The market funds registration, not SN20.

Investor crowdloans cover each subnet's registration cost. SN20 captures carry and upside without fronting the network's most expensive line item.

02 — COMPOUNDING

Carry stacks; it never resets.

Every graduate adds a permanent 15–25% carry position. Year four collects from every subnet of years one through four — at once.

03 — ALIGNED INCENTIVES

Holders, builders, backers all win.

Burns reward holders, lease shares reward backers, runway rewards builders. No side wins at another's expense — the network just gets more good subnets.

Honest disclosure

What has to go right — and what can't be guaranteed.

Subnets can fail

Graduated subnets can underperform or be deregistered. Carry and airdrop value depend on real emissions.

Crowdloans can fall short

If a team's crowdloan target isn't met, contributors are fully refunded — but that team doesn't graduate on schedule.

Registration cost is dynamic

The TAO burn to register a subnet moves with demand. Crowdloan targets must be sized with a live buffer.

Models are not forecasts

The calculator above is an illustrative tool. Real outcomes depend on intake quality, emissions, and TAO price.

The wheel is built

It just needs its first push.

SN20 launches Intake 01 on June 11, 2026. Partners, backers, and builders who move early shape the engine.

Become a partner → Back to overview