Root Reborn would enable TAO validators to choose which subnets to support and reinvest their earnings, rather than continuously selling subnet tokens to compensate stakers. This code proposal is currently under review and is not yet implemented.
By Shaurya Malwa|Edited by Aoyon AshrafUpdated Jun 17, 2026, 1:11 p.m. Published Jun 17, 2026, 12:54 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- The new Bittensor initiative, dubbed Root Reborn, aims to change the way yield is distributed to TAO stakers by converting validators into active capital allocators among AI subnets.
- Rather than automatically converting subnet tokens into TAO each block, validators would reinvest the rewards into selected subnets, forming compounding baskets that stakers can still convert to TAO at any time.
- This code, now submitted for a test network on GitHub, has already been reviewed automatically, which identified two critical issues that the developer claims have now been resolved, with additional improvements expected before any mainnet launch.
A new initiative from Bittensor, the decentralized AI network associated with the TAO token, seeks to alter the compensation structure for its validators, making their roles akin to that of fund managers.
Bittensor consists of numerous subnets, each serving as a marketplace for different AI tasks, each with its own token. The primary token for the network is TAO. Users can earn returns by staking TAO to validators on the root layer, which is deemed the safest area for investment.
This new initiative modifies the current yield distribution method.
At present, the network finances yield by selling the rewards owed to root stakers and automatically converting subnet tokens into TAO. This process means the network is perpetually selling the underlying tokens of its subnets, which negatively impacts their value.
The Root Reborn proposal, submitted by the developer known as 'unconst,' seeks to change this approach.
Instead of liquidating assets, each validator would select a group of subnets to endorse, similar to how one would choose investments for a fund. The rewards that would have been liquidated would be reinvested into these chosen subnets, forming a compounding basket that is staked back to the validator. Stakers will still receive their yield and can convert it to TAO whenever they choose.
This adjustment would eliminate the ongoing selling pressure and instead foster net buying, which would help stabilize subnet prices.
Validators would evolve from being passive yield distributors to proactive curators, as the subnets they support would attract new investments, while those they deem unworthy would be deprived of capital.
This proposal is a code submission on Bittensor's GitHub, aimed at a test network at this stage.
An early automated review highlighted two significant issues, including an upgrade process that could struggle with large data volumes and a payout mechanism that could underpay stakers if a subnet ceases operations. The developer indicated in a GitHub response that these concerns have been addressed, with more refinements planned prior to any mainnet rollout.
TAO, Bittensor's token, has decreased by 28% over the last year, while Bitcoin has seen a 38% decline during the same timeframe. The current staking yield for TAO is approximately 17% if held for a year.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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