SPORTSTENSOR PRESENTS
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• Introduction
• How it Works
• Miner and Validator Functionality
  • Miner
  • Validator
• Miner setup and running Validators
  • Setting up a Miner
  • Running a Validator
• Community
• License

Introduction

Sportstensor operates the world's first decentralized competition network for sports prediction. We connect global AI talent in a competitive ecosystem where independent developers deploy predictive models, compete against real-world outcomes, and earn rewards based on accuracy.

Almanac is the front end to Sportstensor, a prediction market interface that makes competing and submitting predictions by trading simpler and much more accessible.

How It Works

We implement a two-phase optimization system that rewards miners based on their historical trading performance. The mechanism distributes a fixed budget among eligible participants, prioritizing those who demonstrate consistent profitability and trading volume.

The system tracks trading activity over a rolling 30-day window, organizing trades into daily epochs. For each epoch, it:

1. Calculates Performance Metrics:

   • ROI (Return on Investment): Profit divided by trading volume
   • Qualified Volume: Volume from winning trades (after fees)
   • Trailing Performance: Historical performance across all epochs

2. Applies Eligibility Gates:

   • Minimum ROI threshold (prevents rewarding unprofitable traders)
   • Minimum volume requirement (ensures meaningful participation)
   • Build-up period: Traders must demonstrate consistent activity over multiple epochs

3. Runs Two-Phase Optimization: Phase 1: Maximizes the total qualified volume that can be funded within budget constraints Phase 2: Redistributes payouts to favor higher-ROI traders while maintaining volume targets

4. Allocates Tokens:

   • Converts optimized scores into token weights
   • Distributes rewards proportionally based on funded volume and signal strength (ROI)
   • Enforces diversity caps to prevent any single trader from dominating

Key Features

• Dual Pool System: Separate scoring for registered miners vs. general pool traders
• Volume Decay: Recent activity weighted more heavily than older trades
• Smooth Transitions: Ramp constraints prevent sudden allocation changes
• Budget Management: Ensures total payouts never exceed available budget
• Performance Gating: Only profitable, active traders receive rewards

The system is designed to incentivize high-quality trading signals while maintaining fairness and preventing gaming through volume requirements and historical performance tracking.

Miner and Validator Functionality

Miner

• Miners generate information signals by trading on Almanac, which routes Polymarket CLOB orders through the miner’s proxy wallet.
• Every trade becomes a scored prediction within the incentive mechanism, which evaluates accuracy, ROI, timing, and informational value.
• Miners may use manual strategies, models, or automated systems—the scoring is model-agnostic and purely performance-based.
• High-signal miners earn the largest share of daily Alpha Token emissions.

Validator

• Metadata Syncing: Validators continuously sync miner metadata from chain (wallets, proxy addresses, UIDs).
• Data Ingestion: At each epoch, the validator pulls miner trading history from Almanac’s backend (rolling window).
• Scoring: The validator runs the two-phase scoring mechanism.
• Weight Setting: After generating scores, validators set miner weights on-chain, determining Alpha Token emissions for the next epoch.

Scoring and Weights

• Scoring runs hourly in the background, always computing rewards for the previous epoch while updating weights for the current one.
• Epochs follow 24-hour windows, and a decaying memory function favors recent performance.
• Validators publish final weights using the scoring output, directly influencing miner rewards.
• For implementation details, reference the scoring engine in scoring.py and the official docs.

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Miner Setup and Running Validators

Setting up a Miner

Requirements

• Almanac account linked to Polymarket
• Almanac account connected to a registered Bittensor coldkey
• Python 3.10+
• Pip
• CPU

Bittensor Wallet and Subnet Registration

You must have a Bittensor wallet and a registered UID on the subnet.

• Wallet guide: https://docs.learnbittensor.org/keys/wallets
• Miner registration: https://docs.learnbittensor.org/miners

Almanac and Polymarket Setup

1. Go to https://beta.almanac.market
2. Create an account
   • Deploy safe wallet
   • Sign all approvals
   • Fund your safe wallet
3. Connect your Bittensor coldkey:
   • Install the Bittensor wallet extension
   • Import the coldkey tied to your miner UID
   • Link wallet in Almanac settings

Miner Metadata Registration

1. Clone the repository:

git clone https://github.com/sportstensor/sn41/
cd sn41

2. Install dependencies:

pip install -r requirements.txt

3. Register miner metadata:

python miner.py

Miner Trading with Almanac dApp

Once linked, miners can trade directly on https://beta.almanac.market.
Validators automatically detect trades, compute scores, and distribute emissions.

*Note: Miners trading directly on the app don't need to connect their Bittensor wallet after initially linking account.

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Miner Trading with API

For programmatic trading:

1. Complete all onboarding steps above.
2. Use the Almanac API Trading Client (api_trading.py) to:
   • Generate Polymarket API credentials
   • Create Almanac trading sessions
   • Search markets
   • Place signed CLOB orders
   • Submit proxy-signed EIP-712 orders

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Running a Validator

Requirements

• Python 3.10+
• Pip
• CPU

Weights & Biases

W&B is supported for logging.

Enable with:

export WANDB_API_KEY=<your_key>

Setup

Clone and enter the repo:

git clone https://github.com/sportstensor/sn41/
cd sn41

Install pm2 (if not already installed).

Install Python dependencies:

pip install -r requirements.txt

Run Auto-Updating Validator with PM2 (recommended)

pm2 start validator_auto_update.sh --name sn41-validator -- \
    --netuid 41 \
    --wallet.name {wallet} \
    --wallet.hotkey {hotkey} \
    --logging.debug

Run Basic Validator with PM2

pm2 start validator.py --name sn41-validator -- \
    --netuid 41 \
    --wallet.name {wallet} \
    --wallet.hotkey {hotkey} \
    --logging.debug

Environments

Network	Netuid
Mainnet	41
Testnet	172

Community

Join the vibrant Bittensor community and find our channel #פ • sporτsτensor • 41 on Discord.

License

The SN41 Sportstensor subnet is released under the MIT License.

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