Subnets are composed of three stakeholders:

1. Subnet Owners: Subnet owners are responsible for creating and maintaining the subnets, as well as defining the incentive mechanisms for miners and validators.


2. Miners : Miners compete to provide solutions to complex problems within each subnet. They strive to provide outputs that will score well against th

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Institutional capital is in its infancy within alpha token investing. DCG’s subsidiary Yuma and less than a handful of emergent liquid funds like Contango Capital and Unsupervised Capital are playing a mixed role of ecosystem evangelist, VC, incubator, and liquid token investors. These teams are working with early subnet teams to adopt a long-term ... See more

Consider the contrast with centrally planned economies. USSR’s economic model, for instance, relied on predetermined outputs and strategic decisions made by a select committee of party officials. It's a system that wins praise for its ability to mobilize massive resources toward national priorities but is widely faulted for its inflexibility. Centr... See more

As the gap between open and closed AI systems continues to narrow, a token-based global coordination system will prove essential in harnessing the collective intelligence of builders to push AI forward without the massive capital requirements that gave proprietary models their edge.

At a basic level, the protocol consists of:

• A substrate blockchain (Subtensor) that serves as a system of record


• A Native token (TAO) that incentivizes participation


• A network of specialized projects (called “subnets”) that compete for TAO emissions


• A consensus mechanism (Yuma Consensus) for scoring performance and allocating token rewards

On the precipice of this next transformation of the internet, DeepSeek’s release created a watershed moment for open source. It has also resurfaced the drawbacks of OSS, namely coordination challenges and a lack of clear business model. This is precisely where token-based market structures like Bittensor's emerge as a compelling solution. Token rew... See more

Bittensor shares its token structure with Bitcoin: a fixed supply of 21 million tokens on a halving cycle that cuts emissions every four years. TAO was fair launched, and all current TAO holders either earned TAO through valuable contributions to the network or purchased tokens on the secondary market.

The ecosystem is exploding, and there are murmurs of a “Subnet Summer” to rival DeFi Summer in 2020. Today, there are over 100 subnets, and new subnets are registered every 2-3 days. Most subnets are equivalent to Series A startups, in terms of product maturity. There is much optimism, but success requires further execution. TAO’s long-term success... See more

TAO emissions flow to subnets based on the amount of staked TAO each has attracted. This stake-weighted distribution system creates a market-driven approach to resource allocation. It’s a never-ending competition among subnets to produce the most valuable work, as determined by the network.