Bittensor new proposal: Validators may become active fund managers to reduce subnet token selling pressure

According to Coindesk, Bittensor developers have submitted a new proposal called "Root Reborn," which aims to change the revenue distribution mechanism for Root network stakers.

Currently, the revenue for Root network stakers is paid by selling subnet tokens for TAO, which continues to create selling pressure on subnet tokens. The new proposal will allow validators to actively choose a combination of supported subnets and reinvest the revenue originally intended for sale into these subnets, forming a basket of assets that compounds over time.

This move will convert the ongoing selling pressure into net buying demand for subnet tokens, while transforming validators from passive revenue channels into active selectors similar to fund managers. Stakers will still receive revenue and can exchange subnet assets for TAO at any time.

The proposal has currently only been submitted to the testnet and has not yet been deployed to the mainnet. It is reported that TAO has dropped 28% in the past 12 months, and the current annualized yield for Root network staking is approximately 17%.

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