Subnet SN3
Model Teutonic-I 10B
Status Competition closed

Teutonic-I 10B: How a Decentralized Battle for the Throne Outperformed 72B Model

Subnet SN3Duration 70 daysPublished Aug 2026

10 billion parameters. 70 days of open competition. 2163 completed model duels - everything powered by Const and Dendrite. A result that surpassed not only other models trained through decentralized efforts, but also models several times larger.


Sounds like another race to see who can throw the most GPUs at the problem?


Not this time.


Teutonic-I 10B was not built in a single lab, by a single team, following a predefined training recipe. Instead, the model evolved on Bittensor Subnet 3 through a “king of the hill” system.


Independent miners downloaded the current best checkpoint - the king, trained their own challengers, and attempted to take the crown. The network did not care who spent the most on compute or who made the loudest claims about their results. What mattered was reproducible performance: lower loss on the same randomly selected evaluation set, with an advantage large enough to pass a transparent statistical evaluation.


The result?


Teutonic-I 10B achieved an average score of 62.28% across 11 shared benchmarks, outperforming models with 72B, 40B, and 18B parameters. For comparison, Covenant-72B scored 57.55%, Quasar-Preview 18B scored 59.78%, INTELLECT-1 10B reached 45.38%, and Psyche Consilience 40B achieved 39.67%.

SummaryUnweighted mean - 11 shared benchmarks
Avg score
62.28
11 benchmarksAug 1
Parameters
10B
Quasar-10B archFixed
Duels
2163
Completed70 days
Coronations
203
New kings70 days
Best king
#191
Peak scoreDay 60
Average score
Benchmarks: MMLU, ARC-C, ARC-E, PIQA, HellaSwag, OpenBookQA, BBH, TruthfulQA, WinoGrande, GPQA and MATH-500.
How does Teutonic SN3 work?

Teutonic - Subnet 3, is a project focused on developing AI models through a decentralized training system built within the Bittensor ecosystem.


The competition discussed in this article focused on pretraining Teutonic-I 10B (based on the Quasar-10B architecture), with a context window fixed at 2,048 tokens due to the requirements of the evaluation system.


For now, Teutonic-I 10B is a relatively small model. However, the broader project is moving toward training much larger models - exceeding 100B parameters with the goal of competing directly with leading open-source models.


In it’s current form, Teutonic does not prescribe how miners must train their models. It does not enforce specific training scripts or pipelines, dictate which datasets must be used, impose a fixed training duration, or require any particular training infrastructure.


The network defines only the required model architecture, the rules governing the data used for evaluation, and the threshold that a challenger must exceed to become the new king. How a challenger is trained and on what hardware is entirely up to the miner.


Teutonic is therefore not a conventional form of distributed training in which many machines synchronously compute gradients for the same optimization step and aggregate them across the network. Here, miners work independently, and progress emerges through the selection of successive winning checkpoints.


What is decentralized is not only access to the competition, but also the search for better training methods.

Selection mechanism

King-of-the-hill

01 / 03
Only if betterMust outperform the best known version
Better model becomes king
01 / PrepareA miner prepares a challenger

The checkpoint uses the same architecture as the current king.

How to think about it

  • The system works like evolution under a strict selection rule.
  • Training effort alone earns no credit.
  • Only measurable improvement matters.

Strict selection criterion

No reward for effort invested.

No reward for merely training a model.

It must outperform the king.
Interactive diagram - select a step to follow the checkpoint selection loop.

The system is built around a “king of the hill” mechanism. At any given moment, there is one official best checkpoint - the king. Any miner can prepare a model with the same architecture and challenge it.


One way to think about the process is as evolution under an extremely strict selection criterion: a new model receives no credit simply for the effort invested in training it. It must actually outperform the best known version.

Teutonic-I 10B vs. models from decentralized AI initiatives% score

For this comparison, we use the average score across 11 benchmarks shared by the evaluated models: MMLU, ARC-C, ARC-E, PIQA, HellaSwag, OpenBookQA, BBH, TruthfulQA, WinoGrande, GPQA, MATH-500.

Benchmark scores by model, in percent. Higher is better.
BenchmarkTeutonic-I 10BQuasar 10BQuasar-Preview 18BINTELLECT-1 10BPsyche Cons. 40BCovenant 72B
MMLU75.2949.6360.8732.6924.2367.11
ARC-C63.8241.8963.4044.8031.1456.83
ARC-E84.9762.9682.4571.7655.7780.93
PIQA82.8169.9183.3077.7376.1281.56
HellaSwag79.4262.3773.0770.2663.6780.61
OpenBookQA49.0035.4046.4043.8035.2044.00
BBH49.5131.2638.1032.9330.5045.96
TruthfulQA49.5841.0141.7035.4537.9049.41
WinoGrande77.3556.2767.5663.3056.9975.85
GPQA33.9825.8429.2825.8424.6630.03
MATH-50039.400.0071.401.000.2020.80
Average62.2843.3259.7845.3839.6757.55
Bold = best result in row11 benchmarks

Despite having only 10 billion parameters, Teutonic-I achieved the best result on 8 of the 11 shared benchmarks.


Its strongest result is on MMLU, where it scored 75.29% more than eight percentage points above Covenant-72B. Teutonic-I also leads on BBH and GPQA, as well as both ARC variants.


Quasar-Preview retains a small advantage on PIQA, while Covenant leads on HellaSwag. MATH-500 remains Teutonic’s clearest weakness relative to Quasar-Preview, although Teutonic's result is still higher than that of roughly 80% of the models included in the comparison.

MMLU-Pro

On the more difficult MMLU-Pro benchmark, Teutonic-I scored 39.84%, compared with 33.20% for Quasar-Preview.

Who becomes king? The evaluation mechanism

The core mechanism for selecting the best model in Teutonic is a direct duel between the current king and a challenger.


Both models are evaluated on the same set of sequences, each 2,048 tokens long. This ensures that the comparison is not distorted by differences in evaluation data.


For each sequence, the evaluator calculates the average cross-entropy loss and then computes the difference:

FormulaPer-sequence advantage
di=LikingLichallenger
di
the challenger’s advantage on sequence i
Liking
the king’s average loss on sequence i
Lichallenger
the challenger’s average loss on sequence i

If di > 0, the challenger achieved a lower loss and predicted the next tokens more accurately for that sequence.

However, a better average result alone is not sufficient to take the throne. First, the mean loss difference is calculated:

FormulaMean loss difference
μˆ=Ni = 1di
N
the number of evaluated sequences
μˆ
the challenger’s mean advantage over the king

To estimate the uncertainty of this result, Teutonic uses a percentile bootstrap. A total of B = 10,000 samples are drawn with replacement, and for each bootstrap replicate the mean is calculated:

FormulaBootstrap replicate
μˆ*(b)=Nj = 1dij, b = 1, …, B
B
the number of bootstrap replicates, set to 10,000
ij
the index sampled with replacement at position j
μˆ*(b)
the mean advantage in bootstrap replicate b

The resulting distribution of means is then used to calculate the key metric used by the system: the Lower Confidence Bound (LCB).

LCBCrowning criterion
LCB=Qα(μˆ*)
LCB>δ
Qα
the quantile at significance level α
α
the significance level, set to 0.001 by default
μˆ*
the bootstrap distribution of mean advantages
δ
minimum required advantage, set to 0.0015

The LCB provides a conservative estimate of the challenger’s advantage. In other words, it is designed to provide very strong statistical confidence that the challenger’s true mean advantage is not below the calculated bound.


As a result, a new model cannot take the throne simply by achieving a slightly better average score. Its advantage must be sufficiently large and statistically robust.


Another important part of the process is the deterministic selection of evaluation data. The set of evaluation sequences is not chosen by the miner. Instead, it is determined algorithmically from the hash of the submission block and the current mixture of data sources. This means that the king and challenger are always evaluated on identical examples, preventing either model from gaining an advantage through favorable selection of evaluation data.

Global hyperparameters

The entire pretraining competition can be viewed as one global training process. Its overall direction could be managed by steering miners toward higher-quality results through global hyperparameters such as delta, the number of evaluation samples, and dataset weights.


Over the course of the competition, 13 hyperparameter updates were introduced. Dataset configuration was changed 12 times, delta was changed once, and the number of evaluation samples was changed twice.

Best KingHyperparameter changesInitial model (random weights)
Average benchmark score during the pre-training competitionThe score rises from 30.56 on June 2 to a peak of 62.28 on August 1.30.5656.4856.3756.3759.0959.2160.8260.8161.1661.5661.5861.3761.6162.2861.6262.0262.0262.0202.0609.0610.0611.0619.0622.0626.0603.0709.0720.0723.0724.0727.0701.0803.0804.0806.0810.08
Hover, focus or tap a point to inspect the configuration.

The chart shows benchmark results at the points where hyperparameters were changed. Each score was calculated for the final king preceding a given configuration update. It also includes the score of the model used to start the competition initialized with random weights as well as the highest-quality model, selected according to its average benchmark score.


During the first seven days, the average benchmark score jumped from 30.56 to 56.48. That is an increase of 25.92 percentage points in a single week, accounting for more than 80% of the total improvement achieved before the later peak.


In the second half of June, the training focus shifted more heavily toward mathematical problems and reasoning. By July, the model had entered a plateau around 61–62 points.


The best result was achieved by king #191, which reached an average benchmark score of 62.28% on August 1.

Datasets usedDays active / 70
Categories - 12 tags / 12 datasets
EducationMathSynthetic dataVariousCodeLogicEconomicsMoral scenariosScienceScientific articlesMultiple domainWikiHow-style articles

Across the entire competition, a total of 12 different datasets were used. How long each dataset remained part of the training objective depended on the performance of models across the network.


During evaluation, samples are randomly drawn from the entire dataset, which contains more than 4T tokens.


The decision to introduce, rebalance, or remove a particular dataset depended on the desired direction of the global pretraining process.

Evaluations, kings & competition

The competition lasted 70 days, beginning on June 2 and ending with the final configuration point on August 10, 2026.


The best recorded checkpoint, with an average benchmark score of 62.28%, appeared on August 1 as king #191, 60 days after the competition began.


During the competition, 2163 model duels were completed, resulting in 203 successful coronations of a new king.

How do miners earn rewards for improving the model?
Incentive distribution

Throne-based rewards

5-model reward window

All five kings are registered. Each receives an equal 20% share.

Why reward dethroned models?

  • Strong checkpoints remain valuable after they are dethroned.
  • A miner keeps earning through the next four dethronements.
  • This softens winner-takes-all without removing pressure to improve.

What the subnet pays for

Not claimed GPU time

Not tokens processed

It pays for verified model improvement.
Interactive diagram - select a previous king to simulate it leaving or rejoining the metagraph.

The reward mechanism is directly tied to the throne.


The validator assigns subnet weights to the current king and up to four previous kings, provided that their hotkeys remain registered on the network.


Each receives an equal 20% share of the incentive. If one of the historical kings is no longer present in the metagraph, the remaining shares are normalized accordingly.


Why reward models that have already been dethroned?


A strong checkpoint does not stop being a valuable contribution the moment someone improves it by another small step.


A miner who takes the throne continues to receive a share of emissions through the next four dethronements. This softens the winner-takes-all nature of the competition without removing the pressure to make progress: to enter the five-model reward window, a miner must first become king.


In practice, the subnet does not pay miners for claimed GPU time or for the number of tokens they processed.


It pays for verified model improvement.

What comes next?

The next major challenge and likely the next competition on the subnet will be high-quality pretraining of significantly larger models, potentially reaching approximately 100B parameters.


The development of the subnet itself has also revealed many problems worth exploring in greater detail, including various attempts to copy models.


At the same time, several mechanisms have been developed that deserve their own explanations, including methods for creating high-quality synthetic datasets and autonomously selecting pretraining hyperparameters.


There is therefore much more to come from the work being done on the Teutonic subnet.

Who worked on this subnet?5 contributors
Links2 entries
Teutonic-I 10B - Subnet 32026