New Bittensor Proposal Would Turn Validators Into Fund Managers

Bittensor is a decentralized AI network centered on TAO and composed of subnets that issue their own tokens and serve different AI tasks. Under the current Root staking mechanism, subnet rewards are automatically converted into TAO in each block and paid to stakers, creating persistent selling pressure. Validators' capital-allocation decisions therefore have implications for subnet prices and the distribution of resources across the ecosystem.

On June 16, 2026, co-founder Const proposed Root Reborn in GitHub pull request No. 2759. The proposal would allow validators to select subnets, invest returns in portfolios and compound them, while stakers could still convert their holdings back into TAO at any time. It was submitted only for testnet review. An automated review initially flagged two critical issues, which the author said had been fixed. At the time, TAO was down 28% over the preceding 12 months, while its annualized staking yield was about 17%.