Instead of selling everything, each validator would choose a set of subnets to back, much like choosing holdings for a fund. The yield that would have been sold is reinvested in the chosen subnets, held as a basket that compounds over time, and reinvested in the validator. Bettors still get their return and can withdraw money to TAO whenever they want.
This mechanism stops constant selling pressure and converts it into net purchases that support subnet prices.
Validators move from passive performance channels to active curators, as the subnetworks they support attract fresh capital, while those they deem bad actors are deprived of it.
The proposal is a code push on Bittensor’s GitHub starting Wednesday, targeting a test network rather than the main network.
Meanwhile, an initial automated review pointed out two serious problems, including an update step that could choke with large amounts of data and a payment route that could defraud stakeholders when a subnet is closed. The author said in a GitHub response that those issues are fixed and more cleanup tasks are listed before any mainnet release.
Bittensor’s token, TAO, has fallen 28% over the past 12 months, while bitcoin has fallen 38% over the same period. The token’s yield currently stands at around 17% if users hold TAO for a year.
