Instead of selling everything, each validator would choose a set of subnets to support, much like selecting a fund’s holdings. The yield that would have been sold is reinvested in the chosen subnetworks, kept as a basket that accumulates over time and returned to the validator. Punters always get their return and can cash out on TAO whenever they want.
Such a mechanism stops constant selling pressure and turns it into net purchases that support subnetwork prices.
Validators move from passive yield pipes to active curators, as the subnetworks they support attract new capital, while those they deem to be bad actors are deprived of it.
The proposal is a code submission to Bittensor’s GitHub on Wednesday, intended for a testnet rather than the mainnet.
Meanwhile, an initial automated review flagged two serious issues, including an upgrade step that could choke off large amounts of data and a payment path that could short-circuit punters if a subnet is shut down. The author said in a GitHub response that these issues are resolved, with more cleanup listed ahead of 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 around 17% if users hold TAO for a year.
