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Bittensor Proposal Would Have Validators Reinvest Subnet Rewards Instead of Selling

The change would make validators act as capital allocators that reinvest earned subnet tokens to reduce automatic sell pressure on subnet tokens.

Overview

  • A GitHub code submission called Root Reborn would stop automatic sales of subnet tokens and instead reinvest validator rewards into chosen subnets, creating compounding subnet positions that stakers can still redeem for TAO.
  • The author submitted the change for a test network and an automated review flagged two serious bugs: an upgrade step that could choke on large data sets and a payout path that could shortchange stakers if a subnet shuts down.
  • The proposal author said those two issues have been fixed but further code cleanup and broader technical and community review are required before any mainnet deployment.
  • How well the change would support token prices depends on validator behavior because concentrated allocation power could channel capital poorly and turn validators into gatekeepers of which subnets succeed.
  • Root Reborn builds on Bittensor’s existing reward structure, which currently funds root staking by selling subnet tokens, and comes as TAO trades near $253 with staking yields cited around 17 percent.