Dynamic $TAO is about to start the biggest fight we've ever seen for a token.

This will come with a high RISK & REWARD game for those who choose to stake their TAO to a subnet.

When staking your TAO to a specific SUBNET, you are essentially buying the ALPHA subnet token at its current price. When unstaking, you will sell your ALPHA tokens back for TAO at the current market price. 

So when you unstake, you could either lose a significant portion of your TAO if the ALPHA token price drops, or gain more TAO if the ALPHA token price rises.

This means your 10 TAO could turn into 2 TAO or even 50 TAO, depending on the price performance of the ALPHA subnet token.

Validators, delegators, miners, and subnet owners will no longer receive TAO directly as rewards. Instead, all TAO emissions will flow into the subnet pool (ALPHA/TAO). All the participants will be rewarded exclusively in ALPHA subnet tokens, which they must sell if they wish to convert their earnings back into TAO.

The battle between SUPPLY and DEMAND will dictate the price of ALPHA subnet tokens, directly influencing the subnet’s emission rate.

Subnet owners will need to carefully manage the selling of their ALPHA tokens, as this will drive down the ALPHA token price, which in turn will reduce the subnet’s emissions.

When deciding whether to risk our TAO by staking it into a subnet, we must choose one that is not forced to sell a large portion of its ALPHA token rewards in order to remain sustainable.

The magic begins when a subnet can sustain itself without selling its ALPHA tokens, but instead periodically buying more. This will be possible for subnets that generate revenue outside of the Bittensor ecosystem. Currently, from what I know, there are only two subnets have external revenue streams: SN16 BitAds and SN51 Compute.

In the long run, the fight for TAO will only intensify. The surviving subnets will be the ones that generate real value / revenue. Those that aren't dumping their rewards but instead accumulating more TAO and locking it to sustain their business infrastructure.

If it has been frustrating to watch 90% of subnet owners sell their rewards daily, dTAO will change this dynamic completely.

LET THE FIGHT BEGIN! $TAO