Odaily Planet Daily reports: A new governance proposal for the decentralized AI network Bittensor, called "Root Reborn," submitted by developer "unconst," is attracting attention. The proposal is currently in the code review stage and has not yet been implemented on mainnet.
It is reported that the proposal aims to restructure the TAO staking reward distribution mechanism, transforming validators from passive reward distributors into capital allocators similar to "fund managers." Under the current mechanism, the system sells rewards owed to root-layer stakers and automatically converts subnet tokens into TAO to distribute payouts, a process perceived as exerting continuous selling pressure on subnet token prices. The “Root Reborn” proposal suggests that validators can independently choose which subnets to support and reinvest the rewards that would otherwise be sold into assets of those subnets, creating a compounding asset portfolio. Stakers will still receive rewards and can exit at any time in TAO.
The proposal is designed to transform ongoing selling pressure into structural buying demand, while enabling validators to take a more active role in capital allocation, thereby strengthening high-quality subnets and weakening low-quality projects.
However, the proposal is currently under review on GitHub, and early automated reviews have identified risks such as large-scale data processing bottlenecks and potential impacts on staker settlements during subnet shutdowns. Developers have stated that these issues have been resolved and will continue to be optimized before mainnet deployment.
According to market data, TAO has declined approximately 28% over the past 12 months, compared to a 38% decline for Bitcoin during the same period, with a current annualized staking yield of approximately 17%. (CoinDesk)