The TAO Pod

EP06: Why Bittensor Will Outpace Bitcoin and VC Funding: Bittensor's Incentive Abstraction

45 snips
Aug 29, 2025
Explore Bittensor as a groundbreaking innovation that could redefine the landscape of equity and intellectual property. Dive into the debate on why its incentive structure might outperform Bitcoin, making way for flexible, permissionless compensation models. The discussion reveals Bittensor's potential to save billions in venture capital while addressing society's unbanked issues. Listeners learn how user-generated content can drive value in decentralized networks, challenging traditional systems and fostering innovation in the digital age.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Incentive Mechanism Became Programmable

  • BitTensor generalizes Bitcoin by abstracting the incentive mechanism for any useful computation.
  • It enables permissionless, user-generated incentives so subnets can define custom proof-of-useful-work.
INSIGHT

Alpha Tokens Aren't Traditional Equity

  • Subnet alpha tokens can resemble equity but are a different, permissionless value representation.
  • Their value depends on connecting the token to the subnet's produced commodity and miner incentives.
ADVICE

Attach Real Value To Alpha Tokens

  • Subnet owners should design mechanisms that attach real future value to alpha tokens to retain miners and holders.
  • Consider burns, revenue shares, dividends in tau, or sale percentage rules to align incentives.
Get the Snipd Podcast app to discover more snips from this episode
Get the app