Bittensor Root Reborn Proposal Splits TAO Community

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Core developer unconst opened the request around June 15, 2026. According to the PR, root dividends would stop being auto-sold for TAO. Instead, validators would steer that money into subnets they choose.

What Root Reborn Would Change

Today, root staking dividends are sold into TAO every block. Because of that automatic selling, subnet alpha tokens face constant downward pressure. The current code handles this through a function called run_auto_claim_root_divs.

Bittensor Root Reborn flips that flow. Under the proposal, validators set a distribution vector through a new set_root_weights extrinsic. The protocol then converts root dividends to TAO and buys alpha tokens across the chosen subnets.

Those purchases are staked into a compounding basket held in escrow under each validator. Stakers can still redeem for TAO on demand. As a result, perpetual sell pressure would become buy pressure on favored subnets.

The basket also compounds over time. It grows through fresh dividends and through any rise in alpha prices. In theory, that design rewards validators who back strong subnets early.

How dTAO Set the Stage

To grasp the fight, look back to February 13, 2025. On that day, Bittensor deployed Dynamic TAO, known as dTAO, on mainnet. The launch reshaped how the network pays out rewards.

Before dTAO, about 64 root validators decided which subnets received emissions. Critics long called that setup centralized and prone to backroom deals. So the team handed allocation power to the market instead.

Under dTAO, each subnet issues its own alpha token and liquidity pool. Buyers signal value by purchasing alpha, and emissions follow that demand. Meanwhile, TAO now behaves more like a reserve or index token.

Why Bittensor Root Reborn Hands Validators More Power

The shift matters because it changes the validator’s job. Before, root validators acted as passive yield conduits. Now, they would actively curate where capital lands.

Each basket vector works like a stake-weighted vote on subnet funding. Honest subnets could attract reinvestment, while weak ones get starved of buy pressure. So validators would gain a real lever over the network’s money.

That lever sits on top of an already concentrated field. According to taostats, the top 10 validators control about 56.54% of stake. The largest, tao.bot, holds roughly 16.71% on its own.

Critics Warn of a Pre-dTAO Relapse

Trader @AlgodTrading kicked off the debate on June 16, 2026. He called the update rushed and warned that it hands corrupt validators power again.

He wrote that pre-dTAO, “nearly all these validators where doing insider deals,” and that the field was “a massive circle jerk.” So, in his telling, kickbacks were once the norm.

He argued that the community moved to dTAO precisely to end those insider deals. Now, in his view, the update would reverse that hard-won progress.

Other community members echoed parts of his warning. Some said subnets would feel pressure to court big validators for funding. A few, such as @tseutseutao, called for slower changes and a formal vote.

These corruption claims rest on participant accounts, not a published on-chain study. Still, the original Bittensor whitepaper did flag collusion risk among root validators.

Defenders Point to Yield Discipline

Core developer @const_reborn pushed back in the same thread. He argued that dTAO now lets stakers punish bad validators in real time.

He wrote that “it is yield that keeps validators in check,” something the old root network never had. Because of that check, he said, the team needed to build dynamic markets first.

His point is simple. A validator who funds its own weak subnets would post bad yield. Then stakers could move capital elsewhere, so poor curation would cost real money.

Defenders also note that the old root network had no such penalty. Back then, a bad allocation cost a validator nothing. Today, weak picks would show up directly in staker yield.

Supporters such as Mike Contango of General Tensor have also voiced backing for the design. They frame it as an upgrade that pairs active curation with market checks.

Where TAO Stands and What Comes Next

TAO traded near $268.63 on June 16, 2026, according to CoinGecko. Its market cap sat around $2.58 billion, on roughly 9.6 million circulating tokens.

No sharp price move has tracked the proposal so far. Because the PR is only hours old, the market reaction stays early and thin.

The proposal is also not final. An AI security review flagged questions around migration, AMM bounds, and dissolve logic, so technical fixes may come before any merge.

There is no on-chain vote scheduled yet. Whether Bittensor Root Reborn ships will depend on code review, approvals, and community debate in the days ahead.

This article is informational and not financial advice. As always, do your own research before acting on any token.