Author: Weird Thinking
The long-awaited dTAO upgrade of Bittensor is finally going to be released on February 14. What exactly is the dTAO upgrade? @HelloLydia13's article " A Five-Minute Quick Guide to Bittensor "
Anyway, for retail investors, the most important change is that all 64 existing subnet projects on Bittensor can issue their own coins. In other words, Bittensor truly has its own ecosystem. This is undoubtedly a huge benefit to $TAO.
The significance of this whole thing to Bittensor is almost equivalent to the launch of AI Agent LaunchPad by Virtuals Protocol in October last year. Since then, $VIRTUAL has risen by more than 50 times.
The dTAO upgrade is equivalent to introducing a market competition mechanism to Bittensor’s Yuma consensus, which essentially makes the value discovery of subnet projects more decentralized.
The original $TAO distribution model determined by root network voting has been changed to a distribution based on the value ratio of $TAO and dTAO tokens in each subnet’s dTAO token pool. $TAO holders can “vote with their feet” by purchasing subnet tokens to decide which subnets should receive more $TAO rewards.
The dTAO token that has a stronger market demand will generate more $TAO emissions for the subnet represented by that dTAO token. Since the holders of dTAO tokens will also benefit from this, this in turn will promote the market demand for the dTAO token, thus forming a positive flywheel for the value of the dTAO token. Therefore, if you want to share in the dividends of the rise of the Bittensor ecosystem, a more exciting way to play is to stake $TAO to obtain different subnet dTAO tokens (the "staking" here actually means using $TAO to purchase the corresponding subnet tokens).
Since the original pledge has been changed to trading subnet tokens, the pledge income of $TAO is no longer a guaranteed profit. However, if you stake a subnet token with potential, you can get excess income. This will attract a lot of hot money and speculators to Bittensor for arbitrage.
As for how to stake potential subnet tokens, you can check which subnet currently has more $TAO emissions.
Derivative investment opportunities also include DEX projects that provide dTAO trading platforms, including @taodotbot and @HotKeySwap, which are old projects that have issued tokens a long time ago. The market value of $HOTKEY is only 5 million US dollars, which seems to be only 1/7 of $TAOBOT. The old TAO liquidity pledge agreement @TensorplexLabs also plans to launch its own dTAO trading platform @BackpropFinance recently. However, there is no official content yet. You can check out this for related introduction: https://x.com/TensorplexLabs/status/1888942127520075920
