Episode Description:
In this episode, James and JJ explore Bittensor's philosophical community (vs. other tokens' trading focus), open source freedoms from Richard Stallman (four freedoms: inspect, modify, distribute, distribute with changes), incentives as a meta-language for problem-solving, Bittensor's neural network parallels, subnet valuations via fully diluted value (FDV) and discounted TAO flow (DTF) analysis, emission schedules (2-3x faster for alpha tokens), and emerging TaoFi opportunities (e.g., borrowing against future tokens).
Key Timestamps & Topics:
- 00:00:00 - Intro: Bittensor's cult-like ethos for positive impact; incentives for sustainability.
- 00:01:00 - Community Philosophy: Bittensor's depth (growing intelligence, redefining capitalism) vs. other tokens' trading focus.
- 00:02:00 - Open Source Origins: Richard Stallman's four freedoms; philosophical motivations in tech history.
- 00:06:00 - Operating Systems Roots: Carnegie Mellon's Mach kernel influencing Apple/Microsoft; TCP/IP's open source dominance.
- 00:09:00 - Incentives as Language: Expressing value/motivation; Bittensor's abstraction for problem-solving.
- 00:15:00 - Bittensor as Neural Network: Neurons (miners), axons/dendrites (validators), weights (incentives); continuous learning.
- 00:20:00 - Subnet Valuations: FDV vs. market cap; top subnets undervalued (e.g., $400-500M FDV for Shoots/Liam).
- 00:25:00 - Emission Schedules: Alpha tokens mine faster (63 years at 2x EMA); 95% circulating in 7-8 years.
- 00:30:00 - DTF Analysis: Discounted TAO flow like DCF; valuing future emissions/cash flows.
- 00:35:00 - Value Investing: Gap analysis on subnet productivity; top 10 massively undervalued long-term.
- 02:30:00 - TaoFi Opportunities: Financial layers (collars, options, borrowing) on future tokens; parallels to DeFi.
- 02:36:00 - Wrap-Up: Mathematical path to Bittensor > Bitcoin; teaser for next episode.
Key Takeaways:
- Bittensor's community is philosophically driven (e.g., gnostic wisdom, incentivism) for societal impact, unlike trading-focused token groups—key to long-term success.
- Open source freedoms (inspect/modify/distribute) empower users over tech; Bittensor extends this to incentives, abstracting value like a meta-language.
- Subnets as neural components: Miners (neurons) produce value, validators (axons/dendrites) route, incentives (weights) optimize—enabling continuous, humanity-scale problem-solving.
- Valuations via FDV/DTF: Top subnets undervalued (e.g., billions potential); alpha emission 2-3x faster than TAO, reaching 95% circulation in 7-8 years for rapid price discovery.
- Emerging TaoFi: Layer for options/collars on future tokens; Bittensor as "more valuable Bitcoin" via incentive abstraction, with DeFi-like financial innovations ahead.
Resources & Links:
- xAI: x.ai
- Follow Hosts: @jaltucher & @josephjacks_ on X
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