Bittensor ($TAO) Positioned as a Potential Successor to Bitcoin
Many are drawing parallels between Bittensor ($TAO) and Bitcoin, citing its similar tokenomics and emissions structure. This has led to significant interest in TAO as a standout performer among altcoins, alongside BNB. The charts for Bittensor have shown a consistently bullish trend, suggesting it could be a safer long-term investment alternative even amidst market downturns.
New Investment Avenues with TAO
Bittensor is now offering a unique opportunity to invest in Subnet Microcaps without the inherent risk of capital loss. Previously, staking $TAO exclusively yielded rewards in $TAO. The new model allows participants to choose between receiving $TAO rewards or investing in Subnet Microcaps. This approach is considered safer than directly purchasing more volatile subnet tokens, providing a risk-mitigated entry point into these emerging projects.
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Explore how a global network is reshaping the production of intelligence through open collaboration, aligned incentives, and permissionless innovation. Taking the lessons from bitcoin and… pic.twitter.com/RcIGu5x3ho
— Everτ τ, τ (@evert_scott) October 29, 2025
Transformations in Bittensor's AI Economy
The evolution of Bittensor's economic model addresses previous shortcomings. Under the prior system, new liquidity emissions (TAO) were distributed to each subnet's liquidity pools based on subnet price. This often meant that subnets with higher ALPHA prices received more TAO emissions. However, this process was susceptible to economic manipulation and gaming. Subnets with high ALPHA prices and greater liquidity could more easily absorb negative net inflows, a problem the new model aims to resolve.
The Current Bittensor Token Economy
The updated flow-based model introduces a more dynamic allocation of TAO emissions. Subnets that consistently experience negative net TAO flows—meaning more TAO flows out than in, due to staking and unstaking activities—will cease to receive TAO emissions. This consequently halts alpha injection. The implications of this are:
- •Stagnation of liquidity growth within the subnet pool.
- •Increased slippage for users engaging in staking.
- •Greater difficulty in attracting new participants to the subnet.
.@opentensor$TAO helps leverage economic incentives and decentralized networks for open and accessible #AI development.
Grayscale Bittensor Trust is open for private placement for eligible accredited investors.
Learn more and see important disclosures: https://t.co/GN66eNEdStpic.twitter.com/qkv9WofILk
— Grayscale (@Grayscale) October 19, 2025
Functionality of TAO Alpha Token Emissions
ALPHA emissions are distributed to subnet participants as a reward for their contributions. Each subnet independently receives ALPHA emissions, separate from TAO emissions. The total amount of ALPHA emitted corresponds to the full block emission every block.
Distribution of TAO Alpha Emissions
At the conclusion of each tempo, which spans approximately 360 blocks (about 72 minutes), the accumulated ALPHA is distributed as follows:
- •18% is allocated to the subnet owner.
- •41% is distributed to miners, determined by Yuma Consensus.
- •41% is allocated to validators and their respective stakers, based on validator holdings.
Definitive doc on how the new Net $TAO Flow emissions will work just dropped.
All questions answered. 🙂 https://t.co/vucEV7L8fCpic.twitter.com/RjcLTlcig7
— Mark Jeffrey (@markjeffrey) November 4, 2025
Maintaining Positive Emissions for Subnet Owners
To ensure positive emissions, Bittensor $TAO subnet owners must focus on building genuine utility that attracts long-term stakers. Creating sustainable value is crucial for encouraging TAO inflows and maintaining a healthy economic ecosystem.
Emissions for Bittensor TAO Validators and Stakers
Validators receive an allocation from the emissions pool. Subsequently, TAO and ALPHA are emitted to stakers, with the distribution determined by the validators' holdings. TAO emissions are generated by swapping a portion of ALPHA through the subnet's liquidity pools.
Significance of the New Emissions Model
This updated emissions model is pivotal for several reasons:
- •Real Demand Drives Success: Utility, user engagement, and revenue generation become the primary drivers for TAO inflows, fostering organic growth.
- •Darwinian Design: The model inherently prunes weaker subnets while enabling stronger ones to thrive and expand, promoting efficiency and innovation.
- •Ecosystem Boost: By encouraging more TAO to be locked into productive activities, the model helps reduce sell pressure and strengthens the overall ecosystem.
After months of ranging, $TAO finally broke out
But the real story isn’t about price — it’s the ecosystem underneath
A Darwinian AI ecosystem where subnets compete, miners earn, and founders fight for survival every day
In “Beginner’s Guide to Bittensor (TAO)”, I cover:
-… pic.twitter.com/Z3kJJiXr8m— 0xJeff (@Defi0xJeff) October 15, 2025
Achieving Higher Staking APY
Typically, staking yields an Annual Percentage Yield (APY) of around 4-5%. The current system offers the flexibility to choose between receiving TAO or ALPHA tokens as rewards, potentially leading to higher APYs. The TAO Stats platform enables users to select a single validator for staking.
Staking TAO and Claiming Alpha Tokens
To stake TAO and manage your rewards, follow these steps:
- Navigate to https://dash.taostats.io/stake/auto-balance.
- Connect your Substrate wallet, such as Subwallet or Talisman.
- Access your Balance section and use the slider to select the amount you wish to stake.
- Complete the staking process.
Opting for Alpha Token Claims
For those preferring ALPHA tokens over TAO, the process involves:
- •Accessing the "Claim" tab.
- •Changing the "Root Claim Type" to "Keep" to receive ALPHA tokens.
This selection can potentially result in a higher APY, which can then be manually converted to TAO if desired. Alternatively, setting the claim type to "Swap" ensures you receive TAO emissions, a strategy considered safer for long-term holding.
For more detailed instructions and options, consult the comprehensive guide:
https://update-emissions-flow-docs-t.developer-docs-6uq.pages.dev/staking-and-delegation/delegation
Concluding Advice for Staking
It is advisable to approach staking strategically, choosing reward options that align with your individual risk tolerance and investment objectives.