# Bittensor After dTAO: How Alpha Tokens Are Reshaping the Network *Author: David Christopher* *Published: Mar 7, 2025* *Source: https://www.bankless.com/read/bittensor-after-dtao* --- AI blockchain Bittensor’s [long-awaited dTAO upgrade](https://www.bankless.com/read/the-dtao-upgrade) has now been live for a few weeks, shaking up subnet economics, reshaping incentives, and sparking plenty of volatility along the way.  With the dust finally settling, here’s a clear look at what’s working, what's not, and what to expect going forward. ## **Quick dTAO Refresher** Before dTAO, centralized validators controlled subnet rewards, leading to favoritism and slow growth for newer subnets. dTAO replaced this with a market-driven model: - Each subnet issues its own **Alpha token**, paired with $TAO in liquidity pools. The token’s price determines the subnet’s $TAO emissions. - **Miners** earn Alpha tokens, choosing between cashing out or betting on long-term gains. - **Stakers** pick Alpha tokens instead of guaranteed $TAO rewards, adding risk. - **Validators** must hold Alpha tokens, linking rewards directly to subnet success. - **Subnet owners** are rewarded in their own tokens, requiring ongoing value creation. ## **dTAO So Far** dTAO’s first days were chaotic. Alpha tokens launched at 1:1 with $TAO but quickly diverged—some spiked to 5–10 $TAO on speculation, others fell to 0.1–0.2 $TAO. Prices have since settled, largely because of automatic selling pressure (Alpha tokens being sold into $TAO to reward Root network stakers) and rapid profit-taking by early miners and subnet owners. ## **dTAO’s Timeline** To clarify where we’re at in the dTAO rollout, [Chain of Thought’s Teng Yan](https://x.com/0xPrismatic/status/1893126226681942257) created a timeline predicting how dynamics will evolve over coming months:  - **Early Adoption Phase (Now)**: The Root subnet still dominates emissions but is losing share as more Alpha tokens circulate. Subnets are accumulating Alpha, validators are shifting from $TAO to Alpha, and subnet stakes now matter more. - **Day +100**: Alpha and $TAO staking power should reach parity, marking a turning point where subnets start taking control of rewards. - **Long-Term**: Network emissions will be fully market-driven, reducing Root rewards significantly in favor of subnets. ## **Top 5 Subnets by Alpha Token Price** So far, a few subnets have captured double-digit emissions. Given the wide variety of subnets—each applying machine learning to specific AI tasks—the early rankings offer an interesting snapshot of which applications the network currently values most: - [**Targon**](https://taostats.io/subnets/4/chart)** (SN-4): **A decentralized testing ground for AI language models. Targon's decentralized verification also powers the user-facing platform, [Targon.com](http://targon.com/), which provides fast and affordable leasing of advanced AI models. - [**Chutes**](https://taostats.io/subnets/64/chart)** (SN-64)**: Built by [Rayon Labs](https://x.com/rayon_labs) (behind Subnets 19, 56, 64), Chutes offers decentralized AI compute (which can be paid for in $TAO), allowing users to deploy, run, and scale AI models.  - [**Proprietary Trading Network**](https://taostats.io/subnets/8/chart)** (SN-8)**: A subnet using AI to provide and coordinate trading insights. On the network, miners provide sophisticated trading signals for crypto, forex, and indices, which can be purchased via Taoshi’s Request Network.  - [**Bitmind**](https://taostats.io/subnets/34/chart)** (SN-34):** A subnet for AI-content validation and deepfake detection. It currently has a [series of applications live](https://learnbittensor.org/subnets/bitmind-ai/bitmind) like a web-based deepfake detection tool and a Chrome extension ("Agent Smith") that identifies AI-generated images online. - [**Celium**](https://taostats.io/subnets/51/chart)** (SN-51): **A decentralized GPU rental marketplace for machine learning and data analysis tasks. Within 60 days of launch, Celium claims to have generated over [$30 million in revenue](https://x.com/bittingthembits/status/1868378876021239952) and maintains resources in multiple regions, including the US and Europe. ## **What Else Is Happening Since dTAO?** Beyond Alpha token excitement, the network has gained momentum with major players joining and projects gaining mindshare: - **OpenKaito Foundation’s Debut Sparks Excitement**: Everyone’s favorite analytics platform Kaito now has the [OpenKaito Foundation Twitter account](https://x.com/OpenKaitoFDN) for its SN-5. Kaito’s been involved in $TAO for a while, initially looking to build an AI-powered search engine for crypto. It’s unknown if that’s still the case but, with this new real estate secured, [the rumor mill is alive](https://x.com/matt_willemsen/status/1897606814432129034) with talks of a big application release soon. - **Templar Picks Up Momentum**: Templar (SN-3), a decentralized AI-training subnet, also generated buzz by [joining Twitter](https://x.com/tplr_ai). It's hailed as among the only projects doing "[true decentralized and tokenized training](https://x.com/const_reborn/status/1897296153890127876)," so expect to [hear a lot more](https://x.com/563defi/status/1897315327534620892) from this subnet in the coming months. - **CZ’s Fund Invests in Tensorplex**: [Tensorplex](https://x.com/TensorplexLabs), a decentralized AI company building tools for Bittensor, announced [strategic funding from YZi Labs](https://x.com/yzilabs/status/1897678910361625016) (CZ’s Binance investment arm). Their flagship product, [Tensorplex Dojo](https://www.tensorplex.ai/), uses human feedback to improve AI models, aiming to become the "Human API" for AI-driven collaboration. This funding adds to their $3M seed round from DCG, Collab+Currency, and others. - **Bittensor-Powered Betting Agents**: Recently, predictive sports-betting agents like [Billy Bets](https://x.com/BillyBets_ai) and [DKING](https://x.com/thedkingdao) have garnered popularity, with some seeing the social nature of sports betting as a ripe path for introducing the wider public to crypto, without them knowing its crypto. Both agents run on Bittensor, with BillyBets on SN-41 and DKING on SN-44. You can learn more about them in this [week’s AI Rollup](https://www.youtube.com/watch?v=vbk-dsrHCps&t=2126s). --- ## **Zooming Out** If there’s one key takeaway here, it’s patience. There is incredible promise and potential in Bittensor and, while market-driven incentives create fairness, they aren’t foolproof. Though emissions are more decentralized, bad actors could [potentially exploit price dips](https://x.com/0xPrismatic/status/1893126226681942257) to influence emissions by seizing a bunch of cheap tokens. Yet dTAO does represent a genuine, long-term opportunity for those willing to take it slow, monitor subnet traction, and accumulate tokens over a long timeframe. Further, for those less comfortable navigating early subnet chaos, keeping TAO staked on Root remains a solid short-term strategy—APR will slowly decline but should stay respectable for a while longer. *In the meantime, here are some resources to get started with dTAO:* - [**Backprop Finance**](https://backprop.finance/)**:** dTAO trading & analytics terminal by Tensorplex - [**SwordScan**](https://swordscan.com/)**:** dTAO mindshare & analytics terminal - [**TAO Times**](https://www.taotimes.ai/)**: **Top Bittensor ecosystem newsletter - [**dTAO Token Guide**](https://x.com/563defi/status/1892636787496915049)**:** How to buy dTAO tokens