TAOFU
  • Overview
  • The Evolution of Bittensor: From Legacy to dTAO
  • The Subnet Owner’s Dilemma: Growth vs. Liquidity
  • Taofu: A Sustainable Path Forward
    • The Tokenization Process
    • Preserving Liquidity, Unlocking Potential
  • The Taofu Ecosystem: Features and Integration
  • The Role of $TAOFU: Fueling the Ecosystem (WIP)
  • Strengthening the Bittensor Network
  • Risk Diversification and Composability
    • Owning Subnet Seeds (SNS): A More Conservative Approach
    • Composable DeFi Strategies
  • Technical Specifications
    • Sale Setup & Subnet Owner Onboarding
    • Token Pricing & Supply Mechanics
    • Liquidity Provision
    • Vesting & Lock-Up Schedules
    • Whitelisting & Participation
    • Post-Sale Process
    • Subnet Ownership & Governance
    • Potential Future Role of SNS Holders
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The Subnet Owner’s Dilemma: Growth vs. Liquidity

PreviousThe Evolution of Bittensor: From Legacy to dTAONextTaofu: A Sustainable Path Forward

Last updated 28 days ago

Subnet owners operate at the heart of this tension: to secure runway , they must convert alpha_out emissions into spendable currency, typically by selling alpha tokens for TAO and then to fiat. However, this creates a self-defeating cycle: selling alpha_out reduces the subnet’s TAO liquidity, and, consequently, hurting future emissions.

Over time, the “liquidity drain” erodes the subnet’s value proposition, forcing owners to prioritize short-term gains over long-term sustainability.