[My Approach to DTAO: ♻️]

Maximizing Returns While Managing Risk

DTAO presents an opportunity to optimize returns on your $TAO holdings, but it comes with significant risks, particularly in the early stages. Given the uncertainty, my strategy is to sit out the first weeks and observe how the ecosystem develops.

Key Risks to Consider

Several factors could negatively impact your existing TAO holdings, including:

• Liquidity constraints – Initial volatility and market depth issues.

• Slippage – Potential price discrepancies due to limited liquidity.

• Subnet/Miners selling pressure – Early participants cashing out, creating downward price pressure.

Risk Mitigation Strategy: Move 100% to Root

The best way to mitigate exposure to early instability is to allocate 100% to Root and wait for market conditions to stabilize before making further moves.

Research & Due Diligence Before Engaging

Once the initial volatility subsides, the next step is deep research to identify reliable subnet backers and Bittensor-aligned actors.

This includes:

• Tracking on-chain data – Who is buying? Who is selling?

• Identifying key players – Reliable subnet operators and high-value contributors.

• Maintaining a structured overview – A spreadsheet to track trends, identify opportunities, and stay ahead of the market (e.g., opportunities like #VIRTUALS).

Community & Insider Knowledge Are Key

DTAO is a community-driven ecosystem, meaning access to the right information will be crucial. Insider knowledge will play a role, so building relationships and securing a position in higher-tier groups will provide a competitive advantage.

Final Thoughts: Observing Before Acting

I will share further insights on my strategy and execution once DTAO is fully operational. While it has significant potential, it could also face challenges—similar to TAOEVM, which remains largely unusable. However, I am optimistic that DTAO will be a success and will be closely monitoring its progress.