Governance

The TAOFU token will enable individuals to vote on a range of internal control issues as well as support their participation in Bittensor Improvement Proposals.

Yield Flow Control

TAOFU tokens can be used to vote on how to allocate the protocol’s revenue, potentially directing funds towards a backstop fund, safety module, treasury building, or buyback mechanisms.

Treasury Control

TAOFU tokens will also facilitate voting on Taofu protocol-owned treasury utilization, with options including backstop funds, buybacks, or grants.

Validator Control

TAOFU token holders can participate in the decision making process regarding the parameters within which validators operate in the partner program. Token holders will vote on:

• The amount of TAOFU a validator must stake or hold to become an operator.

• The "buy-in" amount in sTAO or TAO required from validators.

• The commission fee payable by validators (initially set at 10%).

• The delegation ratio between the Taofu validator and the individual validator (initially partners will have 10% of their TAO delegated to Taofu).

Voting on Bittensor Improvement Proposals

Taofu tokens let users vote on Bittensor Improvement Proposals, leveraging the full voting power of the Taofu validators or the delegated stake, depending on the governance model adopted by Bittensor.