A new governance proposal submitted to Bittensor’s GitHub repository under the pseudonym “unconst” aims to radically alter how validator rewards are managed, potentially turning network validators into on-chain fund managers. Dubbed “Root Reborn,” the code change would shift the protocol’s automatic liquidation of subnet tokens into an accumulation and reinvestment strategy, easing constant sell pressure on AI-related assets.
The Bittensor network currently emits approximately 7,200 TAO daily, worth more than $1.8 million at recent prices. Under the existing design, the protocol liquidates “alpha” tokens from each subnet into TAO before distributing staking yields. Root Reborn would instead allow validators to select a portfolio of subnets to support, reinvesting yields rather than forcing sales. This would transform the current liquidation mechanism into net buying demand for subnet tokens.
The proposal builds on the Dynamic TAO (dTAO) upgrade implemented in February 2025, which shifted emission allocation power from a validator committee to market forces. Now, Root Reborn adds a layer of human discretion atop dTAO, targeting the 41% of TAO emissions allocated to validators (miners receive 41% and subnet creators 18%).
Despite its potential, the code remains in testnet, with automated reviews flagging risks such as data migration bottlenecks and payment routing failures. A mainnet deployment would require passing community governance after technical fixes are verified.
Meanwhile, TAO’s market sentiment has soured. The token slipped below $250, extending a four-day losing streak amid weakening retail interest. Futures open interest fell over 6% to $252 million, while bullish liquidations reached $1.48 million in 24 hours. TAO now trades below its 50-day and 200-day EMAs, with $231 as a crucial support level. A breakdown could target $196, while recovery above $278–$281 is needed to revive bullish momentum.
