🤝Overview

As artificial intelligence (AI) has come to be an exciting and crucial technology, the concern around the centralization of such technology has intensified. Consequently, the interest in decentralized options has also increased. Founded in 2019, Bittensor is a blockchain protocol that drives a network of digital commodity markets, powered by diverse incentive mechanisms that aim to produce better machine intelligence. Participants in the Bittensor network are given its native TAO token in return for activities that provide consensus or computing power, such as delegating, validating, mining and operating subnets. However, participants cannot easily utilize TAO across external blockchain ecosystems, especially in its staked form.

Taofu is a governance and cross-chain liquidity architecture for Bittensor and staked TAO. The cross-chain liquidity architecture entails a liquid-staking infrastructure that takes in TAO tokens and mints staked TAO (sTAO) on EVM chains. Taofu delegates the TAO in custody to its own validator, as well as to partner validators on Bittensor, and this activity generates yield back to the Taofu custody wallet(s). Entities may use their sTAO in EVM blockchain ecosystems, while still benefiting from the value of and yield generated by their exchanged TAO, which is staked while in Taofu’s custody.

While providing increased capital efficiency to TAO holders, the architecture also supports greater democratization in the Bittensor ecosystem through Taofu’s own governance system. Taofu achieves this through its native TAOFU token, granting holders voting rights that affect both the Taofu and Bittensor ecosystems.