TAO is drawing interest for a reason that has little to do with AI hype or market sentiment. A growing group of Bittensor operators believe the network may be creating unnecessary pressure on its own ecosystem through the way rewards are distributed.
That discussion was explored in a recent video by crypto analyst Jesus Martinez, who broke down how the Root subnet reward system works and why some community members want to change it. At the center of the debate is a proposal called Root Reborn, which supporters believe could help subnet valuations grow by removing a source of constant selling.
What you'll learn 👉
The TAO Mechanism Behind the Debate
When users stake TAO on Root, they earn rewards in alpha tokens issued by individual subnets. The catch is that those tokens are not held by stakers. Instead, the network automatically converts them back into TAO and sends the proceeds to users.
This process takes place about every 360 blocks. Based on estimates shared in the discussion, the system results in roughly 1,000 TAO worth of subnet tokens being sold into the market every day. For many operators, that is the core problem. Subnet tokens are facing daily sell pressure regardless of market conditions, liquidity, or investor demand.
The Bittensor chain is doing something no ecosystem should ever do to itself.
— 2xnmore (@2xnmore) June 22, 2026
Every single day, it wakes up and punches its own subnets in the face.
One of the most experienced operators in the ecosystem just explained exactly why this has to stop and what Root Reborn is… https://t.co/myvkdyZPy8 pic.twitter.com/f3dXauPEcX
The concern becomes even more important when looking at subnet valuations. Many projects inside the Bittensor ecosystem are valued between $1 million and $100 million. In markets of that size, steady selling can have a meaningful impact on price performance.
One of the main arguments raised in the video shared by analyst 2xnmore is that the issue is not the quality of the projects. Several operators point to teams building AI-focused products that they believe are comparable to venture-backed startups. The ecosystem continues to attract developers and launch new projects, yet many subnet valuations remain relatively small.
The view from supporters of Root Reborn is that market structure is preventing those projects from reaching their potential. In simple terms, they believe the network is creating pressure that keeps valuations lower than they otherwise might be.
What Root Reborn Would Change
Root Reborn is designed to address that problem by changing how rewards are handled. Instead of automatically selling subnet tokens into TAO, validators would be able to allocate rewards into baskets of alpha tokens they choose. That keeps value circulating inside the ecosystem instead of forcing a sale every cycle.
Supporters argue that this would effectively reverse the flow. Instead of an estimated 1,000 TAO worth of daily selling, that capital could become buying activity directed toward subnets selected by validators.
The proposal also introduces a new incentive structure. Validators would have a reason to identify and support stronger projects because the performance of those allocations would directly affect their stakers.
Why This Matters for the TAO Price
The discussion goes far beyond subnet tokens. Many participants believe the outcome could influence the future direction of the TAO price as well. Supporters argue that Bittensor needs several subnets to reach billion-dollar valuations over the next year to prove the ecosystem can consistently produce successful projects.
One standout project may not be enough. Multiple large-scale successes would strengthen the case for the network as a whole.Root Reborn is being presented as one possible way to create conditions where those projects can grow more freely. The proposal is still being debated, and concerns around validator influence and governance remain part of the conversation. Even supporters admit there are risks that need to be addressed.
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