Bittensor has deployed the v440 upgrade, introducing the Emission Gate—a mechanism that fundamentally alters how TAO rewards are distributed across its subnets. Previously, every registered subnet earned a share of emissions regardless of demand. Under the new system, subnets must meet a minimum demand threshold to receive full rewards; those falling below it see a drastic reduction in emissions.
The threshold is set at approximately rank 32 among the current 126 active subnets, calculated from average demand using manipulation-resistant price data. Subnets above this rank receive nearly all their eligible emissions, while those exactly at the threshold keep roughly half. The 94 subnets below the threshold now receive just 12.5% of total emissions, down from 38.4% before the upgrade. Conversely, the top eight subnets have increased their combined share from 32.8% to 52.7%. The network's concentration has intensified: 80% of emissions are now distributed by rank 23, compared to rank 64 previously.
The shift eliminates passive income from inactive subnet slots, lowering registration costs and incentivizing builders to create useful AI applications. Alpha stakers are now strongly incentivized to allocate capital to high-demand subnets. While the upgrade does not alter TAO total supply, it redirects new tokens toward subnets that generate genuine demand, which could strengthen the network's long-term value proposition. Investors are watching whether this incentive model leads to increased network activity and sustained TAO demand.
