Today, we’re giving miners the ability to set “ask” prices for their H200s.
Every interval, Targon has ~$3,000 available to compensate miners. In today’s simple market, all miners are compensated pro rata for the machines they bring online — with no pricing transparency and no way for the market to find an efficient clearing price. For example, a miner may not want to participate if they receive less than $2.50/hour, but under the current system they have no control over how low they get paid when the pool is oversupplied.
Additionally, there’s far too much volatility in payouts, which makes participation difficult. With Targon Order Book, the reward mechanism now pays an hourly rate at your desired price, helping create a more predictable and efficient market.
Suppose there’s $10 available, and miners submit the following asks:
The lowest asks are filled first until the $10 budget is exhausted:
At this point, there’s only $0.30 left, which isn’t enough to fully cover the next bid of $2.60. Instead of burning that budget, the remaining amount is paid to the remaining asks — so the miners at and above a $2.60 ask receive a small partial payment of $0.30/(number of bids left). This does mean they’re diluted below their ask, but they still earn something for staying online. It’s a clear signal: bid too high, and you risk getting diluted anyway.
Every interval bids are sorted into "rings". Each ring is a collection of all the bids at the same price.
If there is enough to pay out an entire ring (bid * total gpus in ring) the ring gets paid in full.
If there is not enough to pay the next ring, all the remaining rings get equally diluted — even if this means the payout is below the stated ask.
If there is more than enough to pay all rings, the rest of the alpha is burned. The max bid is currently set to $3.00/hour
Bids are placed as cents per hour in the miner config, and paid out as
bid * gpus * 1.233 when the ring is not diluted. Note the 1.233 is to scale
the hour rate to the length of the interval.
This ensures the entire budget is used, miners who stay online are rewarded, and the market clears as efficiently as possible. Each interval, miners can adjust their asks to stay competitive as conditions change.
This is a powerful step forward for Targon: by letting miners set asks and paying out based on true market clearing, we introduce real price discovery and align incentives for everyone involved. We replace uncertainty with a clear, competitive mechanism that rewards transparency and smart planning. Over time, this same auction-based approach can be extended far beyond H200s — applying fair, efficient clearing prices to any resource we bring online. It’s another example of how we turn market design into a competitive advantage — and for miners, the edge is ultimately the ability to drive down your cost basis without sacrificing the quality of your compute.
© 2025 Manifold Labs, Inc. All Rights Reserved