Crowdloans

A crowdloan lets many people pool TAO to launch a subnet that one person could not afford alone. The creator sets a target and a deadline, and anyone can contribute. The chain holds the TAO until the target is reached. If the deadline passes first, everyone is refunded automatically.

When the target is reached, the subnet is registered and the pooled TAO pays its launch cost. Any leftover is returned to contributors. The rest becomes the subnet's pool reserve, so contributors do not get that TAO back.

In return, contributors receive a share of the subnet owner's emissions, paid as the subnet's alpha. A 50% lease share, for example, passes half of the owner's cut to contributors. With an 18% owner cut, that is 9% of the subnet's emissions, split according to how much each person put in.

Some crowdloans run for a fixed term, after which the subnet passes to its operator. Others never end. Check the terms before contributing.