The TAO is Elon Musk, Subnet who voted for Openai, Sam Altman

Author:MomirIOSG

 

TAOYou need to believe in a game theory miracle. But it's not like the encryption money industry hasn't done it before。

BittensorONE OF THE MOST ELEGANT NARRATIVES IN THE FIELD OF ENCRYPTED CURRENCY: A DECENTRALISED AI SMART MARKET WHERE MARKET MECHANISMS ALLOCATE FUNDS TO THE MOST INFLUENTIAL RESEARCH. TAO IS THE COORDINATION LAYER, THE SUBNET IS THE LABORATORY, THE MARKET IS THE FUNDING COMMITTEE。

Strip off the narrative, you'll find something more disturbing。

Bittensor is a funding scheme whereby encrypted money speculators finance artificial intelligence research and development - and the recipient is not obliged to return any value to TAO。

You can imagine TAO as Elon Mask -- he's the first investor in OpenAI's "non-profit" business. Subnets are like Sam Ottman — they are builders of funds, deliver products, but they have no contractual obligation to share the proceeds. They may eventually choose to privatize the proceeds without returning any value to the original source of funds。

Bittensor will issue TAO coins to network operators and miners based on the price of subnet coins. Once the subnet receives the TAO allocation, there is no mandatory mechanism to require that the AI model, data set or service it generates must remain in the Bittensor ecosystem. Subnet operators can use Bittensor's TAO to motivate wool and then move the real product elsewhere -- up to the central cloud server, package it as an independent API, or a direct packageSaaSShells sell money。

TAO has no equity and no authorized contracts. The only binding requirement is a subnet — a token price that can be sustained to maintain access to resources. But it only works before the subnet is “flying out”: once the product is hard enough, it's able to stand up outside the Bittensor system, the rope breaks. Bittensor's relationship with the subnet is more like a funding fund for scientific research than a venture investment - a start-up fund for you, but not your share。

It's hard to say that Bittensor is essentially a transfer of wealth from the pocket of currency speculators to the accounts of AI researchers — or, more frankly, from pickles to technocrats。

The principle is simple:

• TAO INVESTORS ARE PAYING FOR THE ENTIRE ECOLOGICAL POCKET. THEY BUY AND HOLD TAO AND HOLD THE PRICE OF THE CURRENCY, WHICH IN ITSELF SERVES AS A CONDUIT FOR THE INCENTIVE SYSTEM FOR FINANCIAL INFLOWS。

• SUBNET OPERATORS RECEIVE TAO INFLATION INCENTIVES THROUGH “PERFORMANCE PERFORMANCE” – BUT IN FACT, THE SO-CALLED “PERFORMANCE PERFORMANCE” IS, TO A LARGE EXTENT, THE MAINTENANCE OF THEIR SUBNET CURRENCY PRICES。

• THE AI PRODUCT BUILT WITH THIS MONEY IS READY TO GO -- THE ONLY CONSTRAINT IS THAT THEY ALSO NEED CONTINUOUS ACCESS TO NETWORK RESOURCES。

IT'S VC'S WORST NIGHTMARE: YOU'VE MADE MONEY AND PEOPLE'S PRODUCTS, BUT THEY DON'T OWE YOU ANYTHING. THE REST IS A TOKEN INCREASE SCHEDULE PLUS A PRAYER。

I. OBSERVATIONS OF PERSPECTIVES

Now look at it from another angle. The optimism is based on two pillars:

1. Sustained demand for resources has led to persistent funding shortfalls for AI companies。The costs of computing, data and talent are high. If Bittensor can reliably provide these resources on a large scale, there is a reasonable incentive for the subnet to remain — not because they are locked in, but because leaving means losing access to resources. Logically, there's a soft support: AI's need for resources never ends, and the size that TAO can provide is beyond its reach. By this logic, the subnet team would be willing to maintain its valuation of tokens, without any mandatory mechanism, so that the TAO economy could spontaneously form a positive ship。

2. Encrypted currencies have performed well in terms of resource aggregation。Bitcoin's ability to calculate big amounts is consolidated by mere token incentives. The workload of the Taifeng proves that the mechanism has also been a great success, becoming a powerful magnet for computing resources. Bittensor is applying the same strategy to artificial intelligence. “Enforcement mechanisms” are precisely the token game itself — the motivation for participation is growing as long as TAO is valuable。

If you do 1,000 simulations of the future of Bittensor, the results are extremely skewed。

In most simulations, Bittensor will remain a small-scale funded project. The AI AI results from the subnet are insignificant. The best-performing subnets get prominent attention, capture rewards, then turn to closed-source patterns, leaving no value to TAO. As current currency issuance exceeds the value created, TAO tokens will depreciate。

IN A FEW SIMULATION PATHS, SOMETHING REALLY GOT UP. A SUBNET MAKES A REALLY COMPETITIVE AI SERVICE, AND THE NETWORK EFFECT STARTS ROLLING SNOWBALLS. TAO BECOMES THE COORDINATION LAYER IN THE TRUE SENSE OF DECENTRIZATION OF AI INFRASTRUCTURE - NOT BY IMPOSING CONSTRAINTS TO CAPTURE VALUE, BUT BY GRAVITATIONAL FORCE OF BEING A FUNCTIONING AI-BASED RESERVE ASSET。

IN VERY FEW CASES, TAO BECAME THE DEFINITION OF THE EXISTENCE OF AN ENTIRELY NEW ASSET CLASS。

II. Where problems may arise

It's simple to look at empty logic:

• No viscosityI don't know. Once the subnet no longer requires the tao token incentive, it will leave. Bittensor is a transition, not a final destination。

• CENTRALIZATION, AII don't know. OpenAI, Google andAnthropicSUCH COMPANIES HAVE NUMERICAL CAPACITY AND A POOL OF TALENT AT THE QUANTITATIVE LEVEL. TAO CAN'T MATCH VENTURE CAPITAL AND THE STRENGTH OF PRIVATE EQUITY MARKETSEnemyI don't know. Therefore, the best talent will choose the traditional path of development。

• Increased revenue is taxI DON'T KNOW. THE TAO GROWTH PROGRAMME SUBSIDIZES THE SUBNET BY DILUTING THE HOLDER. IF THE VALUE CREATED BY THE SUBNET DOES NOT MATCH THIS DILUTION, IT IS A CHRONIC LOSS OF BLOOD IN THE CLOAK OF THE GROWTH MECHANISM。

Optimistic scenarios, to put it bluntly, are more like wishes than a real and viable path to success。

Conclusion

Most of the capital invested in TAO will eventually subsidize development activities that do not give back value to currency holders. But Crypto has proven many times that a coordinated game driven by token incentives can produce everythingRational modelNone of the results can be predicted. Bitcoin should logically not have succeeded, but it has succeeded — although this argument is not sufficient in itself, and the industry has used it to endorse projects that are too numerous to withstand the first principle。

The core issue of TAO is not the existence of a mandatory mechanism - it does not exist and the efforts of dTAO have not changed this. The central question is whether game theory incentives are strong enough to keep the best of the subnets on track. Buying TAO is a “soft guarantee” that can be established in a cruel reality。

It is either naive or visionary。