A new Bittensor proposal would make validators something like fund managers

Instead of selling everything, each validator would choose a set of subnets to support, much like choosing holdings for a fund. The proceeds that would have been sold are reinvested in the chosen subnets, held as a basket that compounds over time, and staked back to the validator. Stakers still get their dividends and can cash out to TAO whenever they want.

Such a mechanism stops the constant selling pressure and turns it into net buying that supports sub-grid prices.

Validators transform from passive dividend conduits to active curators as subnets they support attract fresh capital while starving those they judge as bad actors.

The proposal is a code submission on Bittensor’s GitHub from Wednesday, aimed at a test network rather than the main one.

Meanwhile, an early automated review flagged two serious problems, including an upgrade step that could choke large amounts of data and a payout path that could short stakers when a subnet shuts down. The author said in a GitHub response that these issues have been resolved, with more cleanup 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 staking yield is currently around 17% if users have TAO for a year.

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