$---What is dTAO?
Bittensorâs Dynamic TAO (dTAO) transforms staking by empowering TAO holders with direct control over their stake allocation.
Unlike the previous system, where validators dictated subnet support, dTAO lets you decide which subnets to back, shaping their growth and emissions.
Why Dynamic TAO?
Dynamic TAO fosters a fairer, more competitive ecosystem by decentralizing emission distribution:
- Direct Control: You choose which subnets to stake TAO into.
- Diverse Rewards: Earn subnet-specific tokens that may rise in value with a subnetâs success.
- Market-Driven Competition: Subnets must earn stake through value, enhancing network efficiency.
If youâre passionate about decentralized AI, dTAO lets you actively shape its future.
How Staking Works: A Step-by-Step Guide
Step 1: Stake to a Trusted Validator
- Before you can interact with subnets, you must first stake your TAO to a validator.
- Validators are your access point into the networkâthey register at different subnets and enable you to participate in them.
Step 2: Exchange for Subnet Tokens
- Once staked, you can exchange your TAO for subnet tokens based on the subnets your validator supports.
- Each subnet has its own token (e.g., ALPHA for Subnet 1, BETA for Subnet 2, etc.).
- These tokens represent your stake and influence within that subnet and allow you to earn rewards from its growth.
- The more TAO staked in a subnet, the more emissions it earns.
Subnet Tokens: How They Work
To keep things simple, weâll refer to all subnet tokens as "ALPHA", but in reality, each subnet has a unique token that is only exchangeable for TAO.
â ď¸ BE AWARE OF SCAMS CLAIMING TO BE ALPHA TOKENS. â ď¸
When you stake TAO to a subnet:
- Your TAO enters the subnetâs pool, determining your share of subnet tokens.
- Your stake helps decide emissionsâthe more TAO in a subnet, the more rewards it gets.
- When you stake TAO, you withdraw ALPHA from the pool. This changes the balance of TAO vs. ALPHA in the pool, increasing the price of ALPHA.
Understanding Slippage: Why Timing Matters
Just like exchanging money in a foreign country, the price of subnet tokens (ALPHA) changes based on supply and demand. This is called slippageâthe difference between the expected exchange rate and the actual rate you receive.
- TAO in pool represents the liquidity of a Subnet.
- The bigger is the % of Alpha in pool, less liquid this Subnet token is and more slippage will affect you when swapping the token.
- If a subnet has fewer TAO in pool, you may receive more ALPHA per TAO staked.
- If a subnet is rapidly growing, more TAO in pool increases ALPHAâs price, reducing how much ALPHA you receive per TAO staked.
How Alpha emission is distributed
- 41% of ALPHA_OUT goes to Validators
- 41% goes to Miners
- 18% goes to Subnet Owners
This balance ensures that subnets remain competitive, and emissions respond dynamically to demand.
