Bittensor Proposes 'Root Reborn' to Reduce Subnet Token Sell Pressure

Huo Xing Cai Jing reports, according to Coindesk, that Bittensor developers have submitted a new proposal titled “Root Reborn,” aiming to overhaul the reward distribution mechanism for root network stakers. Currently, root network stakers receive rewards in the form of subnet tokens, which are sold for TAO, creating ongoing selling pressure on subnet tokens. The new proposal would allow validators to actively select a portfolio of subnets to support, reinvesting the proceeds that were previously sold directly into these subnets, thereby forming a compounding asset basket over time. This change would transform persistent selling pressure into net buying demand for subnet tokens, shifting validators from passive income recipients to active selectors akin to fund managers. Stakers will still earn rewards and retain the ability to convert their subnet assets into TAO at any time. The proposal has currently only been submitted to the testnet and has not yet been deployed on mainnet. It is noted that TAO has declined 28% over the past 12 months, with the current annualized yield for root network staking at approximately 17%.