#Bittensor >> $TAO >> dTAO

@CrucibleLabs explains dTAO to us. I'll try using their example to explain it as if we were 15 years old. The goal remains the same: making things simple.

Feel free to correct, add, or simplify where needed.

You still have a few days to learn and explore, use this time wisely, it could be beneficial for you.

Alright, I'll explain dTAO and its mechanism with subnets as if you were 15 years old, using a simple metaphor.

🎡 Imagine an Amusement Park with Tickets

Think of Bittensor as an amusement park with multiple rides (subnets).
Each ride requires a special ticket to operate. These tickets are not free; you have to buy them using the park’s money ($TAO).

When a new ride (subnet) opens, it starts with:

100 TAO (the park’s money)

10,000 tickets (Alpha tokens)

A pricing rule that says: Ticket Price = Park Money ÷ Number of Tickets

🎟 Buying Tickets Increases the Price

If someone buys tickets, they give TAO to the ride.
But since the ride must always stay balanced, every purchase reduces the number of remaining tickets, making their price go up.

Example:

1. At the start:

100 TAO and 10,000 Tickets

Price of 1 ticket = 100 ÷ 10,000 = 0.01 TAO

2. Someone buys 10 TAO worth of tickets:

The TAO pool increases to 110

To maintain balance, the ride reduces the remaining tickets to 9,090.91

Ticket price rises!

💸 Selling Tickets Decreases the Price

If someone sells their tickets, they put them back into the ride and get TAO in return.
But the more tickets available, the lower their price.

Example:

1. Someone sells 500 tickets back to the ride

2. The total number of tickets increases to 9,590.91

3. To keep balance, the TAO pool decreases to 104.27

4. The ticket price drops slightly!

🚀 Why Does This Matter?

The more people buy, the higher the ticket price goes, and the subnet earns more TAO.

The fewer people buy, the lower the price goes, allowing some to buy low and sell high later.

It’s like a mini stock market, where each subnet has its own economy based on supply and demand.

In summary:
👉 You can invest in a subnet by buying its tickets.
👉 If the subnet becomes popular, the price rises, and you can sell for a profit.
👉 If you want to exit, you can sell your tickets and get TAO back.