News·Const (Opentensor)·Mar 25, 2024, 22:09 UTC

DTAO: CommodityAnalysis

Hey @everyone There have been some questions in the Discord regarding DTAO and securities laws in the US. Here is my response, with some background and some changes. Dynamic TAO While Bittensor has bootstrapped its 32 subnets using the root network over the last 5 months, this was never intended to be the way in which Bittensor commodity systems would be selected. The reasons for this should be obvious: the use of a select few centralized ‘root’ participants to select these mechanisms opens up Bittensor to cronyism, corruption, and oligarchic control. Dynamic TAO was designed to be the natural and honest solution to the selection of these sub-commodity systems. Instead of the choices of individuals ‘guiding’ the growth of Bittensor, they would be selected by market demand for the items being produced. i.e., demand for bandwidth on Subnet 18, storage on Subnet 21, data retrieval on 5, loss reduction on 9, etc. However, like all nascent economies, we understood that it would take time for this market to mature into a place where these commodities represented enough intrinsic value, in and of themselves, to be properly selected by commodity demand. This is why the Opentensor Foundation’s proposal for the organic and healthy evolution of Bittensor was through three stages. 1) Root: Where highly invested groups would lay the foundation for Bittensor’s commodity systems. Setting weights on and thus stimulating the growth of mechanisms that worked to produce viable digital commodities. 2) STAO (Soon to be released): Where the decision process of these commodities would be decided by a much larger group of token holders. Specifically, individuals could increase or decrease their allocation of each of Bittensor’s commodity systems selectively — and also to build a conceptual bridge for DTAO. 3) DTAO: (Under review): Where, like mature commodities, their ‘price’, within the Bittensor ecosystem, would be determined by supply and demand. Dynamic TAO is the natural evolution of

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