A new Bittensor proposal called Root Reborn aims to change how yield is paid to TAO stakers by having validators reinvest rewards into selected subnets instead of automatically selling subnet tokens. Currently, the system sells subnet tokens for TAO each block, creating constant selling pressure that depresses subnet token prices. Under Root Reborn, validators become active allocators, choosing which subnets to back and holding a compounding basket of tokens. Stakers can still cash out to TAO at any time. The proposal is code submitted to GitHub for a test network, not yet live on mainnet. An automated audit flagged two serious issues—an upgrade step that could fail with large data and a payout path that could shortchange stakers during subnet shutdowns—but the author claims these are fixed, with further cleanup needed before mainnet. Bittensor's TAO token has declined 28% over the past year, with a staking yield of ~17%.

Key facts

• Root Reborn changes validator yield from auto-selling subnet tokens to reinvesting in selected subnets.
• Validators become active capital allocators, picking subnets to support and compounding rewards.
• Stakers can cash out their basket of tokens to TAO at any time.
• Proposal is code on GitHub for testnet, not live on mainnet.
• Automated audit flagged two serious issues; author says they are fixed.