# Emissions

#### Emissions to nodes are calculated through levels:

1. Overall network inflation
2. Subnet distribution
3. Node distribution

#### Overall Network Inflation

The Hypertensor inflation mechanism is **disinflationary**. As the overall network's number of sub-network nodes increases, the inflation rate decreases.

Inflation is based on the activity of subnet validator nodes.

$$
\text{inflation}(u) = r\_t - (r\_t - r\_0) \cdot
\begin{cases}
\frac{1}{1 + e^{k \cdot |u - m|}}, & \text{if } u > m \\
\frac{e^{k \cdot |u - m|}}{1 + e^{k \cdot |u - m|}}, & \text{if } u \leq m
\end{cases}
$$

This function defines a **sigmoid-shaped curve** for yearly inflation based on network utilization:

* ***u***: current node utilization ratio (active nodes / max nodes)
* ***m***: midpoint of the curve (utilization where inflation changes fastest)
* ***k***: steepness of the curve (higher = steeper transition)
* ***r***<sub>***0***</sub>​: initial (max) inflation rate
* ***r***<sub>***t***</sub><sub>​</sub>: terminal (min) inflation rate

As utilization increases:

* Inflation starts high at ***r***<sub>***0***</sub>
* Decreases smoothly as more of the network is used
* Levels off near ***r***<sub>***t***</sub>​ when saturation is reached

This incentivizes early participation while gradually stabilizing rewards as network activity increases.

#### Subnet Distribution

From the overall inflation, the emissions are distributed to subnets based on economic and fundamental mechanisms.

The final subnet weights are calculated once per epoch based on the delegate staking weight and the node weight of each subnet.

#### Node Distribution

Node distribution is based on the consensus that a subnet comes to each epoch.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.hypertensor.org/emissions.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.