Ecosystem

Tokenomics

How it works

Developer UX

Subnets

Pros

1. Not tied to the blockchain as a bottleneck (only limited processes related to the weights and token distribution tied to the blockchain).
2. There are flexible ways to add new ideas/particular tasks (subnet) to evaluate them concurrently with existing ones.
3. Clear Tao/$ incentive to participate in the protocol by doing some particular task.

Cons

1. There is no clear mechanism to make Tao tokens valuable so far (to make natural demand for them).
2. In the current state, whale validators have a big power (distribute tokens between subnets, distribute tokens to miners within the subnet), which opens a door for syndicate schemas, etc
3. Not the best developer experience (Flow and tools in early phases at this point).
4. In this state, it's limited to 8192 players in total (miners + validators)
5. Very high price for developers to understand the network and start contributing

Subnets are all initially subsidized in full by the inflationary rewards, each subnet will eventually have to sustain itself economically (not clear how!)

Experiments

• [x] Research network architecture
• [x] Research subnets
• [ ] Local deployment
• [ ] Miner testnet deployment
• [ ] Production miner deployment
• [ ] Validator API evaluation (use and measure performance)

Questions

• Why TAO is better than the individual projects doing the same?
  • https://www.getgrass.io = SN 22 ; https://filecoin.io = SN 6 ; https://numer.ai = SN8
  • network effects but shared economy can be both good and evil
• Can someone fork it as an ETH rollup and win?
  • will be hard, network effects and community is key

Opportunities

Fork Bittensor

Cybercongress is doing that on top of Cosmos