Bittensor (TAO): Real AI Demand or Token Subsidy? | Daily Crypto IQ

Awesome bit tensor. Let's separate the product. And the real question tonight, of course, is not whether artificial intelligence is real. I don't think anybody is really questioning that. It's funny. I actually have a lot to say on that topic, but that doesn't really pertain to BitTensor, right? The question is whether Bit Tensor has created real demand for decentralized intelligence or an extremely sophisticated token economy that is still paying itself to grow. basically like a subsidy, right? So, TA is rallying alongside claims about subnet revenue, right? All the projects on Tao are subnets and token buybacks. There's some rumors and, you know, murmurings about buybacks. We're going to get into that. But, Bitensor also created approximately 3,600 new TAW every single day, while every subnet has its own inflation alpha token. And that does not make BitTensor fake or unvaluable,

right? Let's be clear about that. It makes the source of its economic value the most important part of tonight's token autopsy. And I really hope by now you guys understand like what a token autopsy is. By the end of this, we should know about BitTensor's actual products, right? What it actually produces, who's using it, and where the money enters, and whether [music] TA captures that value. and exactly where it belongs on the token autopsy leaderboard aka what score it gets. So every token autopsy ends with a score right for the token and then we can create a leaderboard or I have created a leaderboard right and that leaderboard is kind of going to be like your quick look at things right like we have the deep dive say there's a project you're highly anticipating or highly want to know

about or excited about you can go to the token autopsy on it and you can look at it you can watch the video I'm going to have all the notes and things organized in the discord [music] uh just give me a a little bit of time to get that ready. And then there's even going to be like a a slide that goes with it, almost like a PowerPoint kind of thing to even make it more visually exciting if you want that, right? But the point is once we get like 30, 40, 50 of these done, you'll be able to look at that and just look at the top 10 and be like, "Okay, these are the top 10 tokens that we've done so far out of say 50 or how however many cuz it'll always be growing that actually

have a high chance of getting value in its own economic demand." Because for most tokens, you're completely relying on speculation in the market, right? people just whether they're institutions or regular everyday retail, regular people buying the token, therefore more money in the market cap and the value of each token or coin or asset or whatever goes up. Well, imagine if there were other ways out of the ecosystem, out of the product itself that actually generated uh deflation or money through buybacks and burns and other mechanisms that on top of speculation in the market can really get some crazy pumps going and some multiples on your money. I don't know of anything more valuable that I could really give you guys. I keep saying that, but hey, I'm challenging everybody out there. Please tell me in the chat something more

valuable that we could be talking about token value capture. But I noticed from talking to a lot of people that I don't actually see a lot of people really understanding, and I don't mean in in my community, I mean like just outside of this community, uh, in real life, they really understand that they just think a product is good or a coin is good or yeah, the product is good, the actual company, [music] the foundation, and they just think that the coin is going to do well. they that's kind of that's like a stock market mentality and it doesn't translate here in crypto. I think it's one of the bigger crypto IQ things that you could actually be aware of here. So, BitTensor is not like one artificial intelligence model and it's not one decentralized cloud provider. It is

a blockchain that allows independent teams to create specialized markets called subnets. Right? [music] One subnet might reward AI imprints. Another could reward storage predictions or data collection model evaluation or agent activity. So these subnets are obviously specialized, right? And they're subnets because they're under the Bit Tensor chain, right? Well, miners actually perform the work. validators actually judge the work and stakers financially back the validators and there's usually security involved. The protocol distributes token emission according to its economic and consensus rule. Consensus usually a big word just means like how things work. That architecture is genuinely different from most AI tokens. It also makes BitTensor much harder to evaluate because strong activity inside the token economy is not necessarily the same thing as customers buying the underlying product. [music] If that if that doesn't fully connect for you, it's because

we're going to be going over the product and explaining what the product is. So tonight's contradiction or tension, if you will, is that Bit Tensor may have one of the crypto's strongest product to token relationships while still lacking enough verified outside revenue to prove that it is currently that its current valuation, right? Is commercially sustainable. And that's a big deal because you need a lot of revenue coming in. It needs to be like commercially sustainable for us really to go where people want it to go. you know, bit tensor to $1,000 or something like that from where we are now. And that is in line with what we are investigating. So, TAL funding the production of valuable intelligence until customers arrive like are they paying for it out of their own pocket to get it to grow or is

the token economy becoming the customer itself? What do we got going on in the chat? Happy and grateful. Yep. Game. Let's go. People hit that. Likes. Absolutely. Thank you everybody who's here. Shows me that you care about crypto. And how's everybody's bags doing right now? How's everybody's portfolio looking? So, let me see. tell the bot it it did a terrible job. Real quick and we're going to do the the notes tonight directly from uh the way we normally do them, right? Because I don't like what a what the bot put together. It wasn't very good. And if you have any idea um how much time it takes to turn all of these notes into really good-looking slides, I'd love to do that. But man, it's like a part-time job [music] and I already have too many jobs. All right,

anyways, let me not go off on a tangent. Bit tensor locking in is frequently summarized as decentralized AI, right? Artificial intelligence. And that description hides several different [music] economic activities. Producing AI or digital commodities, right? These are the different economic activities that are within BitTensor. Just a pre-reference here. producing AI or digital commodities, paying miners and validators with token emissions, trading subnet alpha tokens, staking, right? Staking functions, selling services to actual outside customers, right? And calling internal protocol distributions revenue. If these activities are combined, Bitensor can look more commercially proven than the available evidence to actually support that. The shift though is that evaluate Bit Tensor as two connected systems, right? We're breaking this thing down from looking at it as just Bit Tensor, right? We have a product network producing digital commodities. And on the other hand, we

have a token network financing, pricing, and rewarding those products, those digital commodities. and the investigation where the two systems actually connect and how well they connect is what it's all about. Checking out that chat. So, the payoff is reviewing whether outside customers are paying for BitTensor products, right? Is it just in-house? Is it a lot of people inside the product themselves who care about the product? Is there a care about what they're [music] doing and a willingness to purchase it on say an open market outside of even crypto? Because that opens it up to a much bigger market. Payments create demand for Tao. Well, that's something we need to know. This is like in every token autopsy. It's like is the token TA tao the token bitensor the company or the product, right? is TA the token really useful

or like ono that we did our token autopsy it was just basically a glorified governance token there's some power in governance but there's no direct link to revenue so towel holders receive value from commercial activity these are the things that we need to be investigating right the network is still primarily subsidized in its own development meaning that the foundation and the money inside the foundation that they got together to start the whole thing. Um, is that what's mostly paying for everything until they can figure out how to get it up off the ground? Pretty regular business type stuff, right? But still highly important. Is it able to sink or swim? When it really gets to the point when they run out of money to subsidize, it's got to be able to run and produce income for the whole entire

network or it's done. subsidies are producing durable products or are they just circular token activity around [music] in one circular type of format? This is always fun, right? I love the what you may not know and I love the signal versus noise in the beginning of the show. I just think that they really help set the tone. So, what you may not know is that Bit Tensor is not one AI model, right? It's not one giant AI model. It is a blockchain coordinating many independent subnet markets, right? Staking TA into normal subnet is a token swap. Tao enters the subnet pool and the staker receives the subnet alpha token exiting swaps back into TA which introduces liquidity and slippage risk. So the way that bit tensor actually works in the towel token and thing is quite a bit different

than most blockchains and things that I've seen or ever dealt with. Right? So we will be breaking that down a little bit because I think it's important even though the focus is a token autopsy, it's very important to understand what the heck is going on inside the actual project and that sets you up later. Raise that crypto IQ as I always say. Well, that really sets you up later to understand when they make moves. If they say, "Hey, we upgraded this." Well, that doesn't mean anything to you if you don't even know how it works, right? Or if they say, "Hey, we introduced this new product. It works with this other product." That means nothing to you when you don't even know what the other product that it works with is. All right? So, I [music] hope you guys

see the connection. So, what you also may not know is every subnet has its own alpha token and its own 21 million token cap. So, every subnet has a token and that token has 21 million token cap as well. That's an interesting dynamic. I mean, there's a lot of things like tokconomic token economicwise that we could really talk about there, but I won't go off on a tangent. I'll try to stay locked in for you. But the network therefore has only or one Tao supply schedule plus many separate alpha supply schedule. So you have TA and then [music] TAO and all the many subnets and all of their tokens. And I'll give you a little hint. Anytime you look at a ticker and it says SN and then like a number that SN stands for subnet and raising that

crypto IQ. When you see that SN in the ticker, you immediately know that that [music] is a bit tensor product, right? That it's affiliated. It's on Bit Tensor's blockchain. TA staking yield does not automatically represent customer revenue, right? Much of the yield originates from the token issuance and subnet alpha distribution. You may not know that Bit Tensor's blockchain currently uses proof of authority. So, you know, proof of stake, proof of work. This is proof of authority on the blockchain. Only approved authorities produce finalized blocks. The transition to nominated proof of stake remains a road map item, right? So, we have to be serious about uh yeah, welcome, Zach. Welcome in. Welcome in. All right. All right. Glad to see some people hopping in the chat. If you're just getting here, smash that like button for me. link to our

free discord in the chat if you want to hang out whenever we're not live streaming. But anyways, what I wanted to talk about is so currently Bit Tensor is proof of authority, right? But proof of authority looks like in their road map is going to transition to this uh proof of stake or nominated proof of stake. Is that going to be kind of the exact same as proof of stake anywhere else or is it going to be kind of a different version of proof of stake? Right. And it's proof of stake is usually staking to secure the network. Also, you may not know that Bitensor does not have the traditional team and investor unlock cliffs found in many crypto projects. This is highly important and I will dig into more of that later. Its original launch did not include

a conventional initial token distribution. Although the foundation now holds meaningful position. Um, personally, I don't really mind when the foundation holds a lot of tokens because the foundation should have some kind of incentive or some kind of care that the token does. Well, the foundation doesn't own any tokens. What does it really care? Give it incentive. Make sure they hold some tokens and it matters to them that the token does well. I think that helps out everybody. So the first TOAO having occurred in December 2025. So December 2025 was the first TOAO having right and if you know Bitcoin economics and stuff you should know what a having is right. So issuance is now approximately 0.5 TOA per block or 36,000 TOA per day. Having of course is having the amount of tokens that are issued. It's put in

half just like Bitcoin tokconomics. What's up? Welcome in. Welcome in. Thank you for being here. I see you in the chat. I appreciate you being here. Smash that like button. If the first time here and you really care about cryptocurrency, the asset class that is cryptocurrency. Uh, make sure you subscribe. And we got rid of ads so you don't have to watch ads. So consider getting one of those memberships. Starts at three bucks, right? I don't ask much. Signal versus noise, right? So this is where we do news but we keep it relevant to the topic of the night which is bit tensor. So signal meaning important noise meaning not important. The SEC security exchange commission opens a path for tokenized US stocks. The SEC granted temporary conditional relief allowing approved venues, again emphasis on approved venues to trade

tokenized national market system stocks through permission automated market makers. That whole approved venues, that's like inside club. Like you're either in the club or you're not in the club, right? So important conditions to include if I don't get distracted by the chat is that the token must convey the same rights as the underlying stock. So these are the stipulations that the SEC has set for anybody who's considered a approved re uh you know venue, right? So they must give the same rights as the underlying stocks as if the person owned the stock themselves. Smart contracts must be public and audible. The first thing that this reminds me of this whole same rights as the underlaying stock reminds me of Coinbase. I think Coinbase saw this coming. I think Coinbase knew about this [music] because they were touting or I

don't want to say bragging, but they were saying that their stocks were going to give you the same exposure and the same rights to a stock as if you actually own the stock when you had their tokenized version. I think that's a no-brainer because why would somebody want to own a tokenized version of a stock if they're not getting all the things if they're getting less rights to the stock than they would if they just bought a stock, right? Smart contracts must be public and audible. The ledger, which is a list of like transactions and things that go on, must be public and permissionless, right? It can't be private. Issuers receive notice and opportunity to object. And the exemption expires after 5 years. So this whole thing, this whole exemption that they're doing, it's only good for 5 years.

So in the meantime, they got to figure out what the heck they're going to actually put down as final, like write down as final uh rules on the paper so that everybody knows what the heck is going on. I think a lot of this is because the Clarity Act just didn't really it didn't [music] really get through. And who knows when they're actually going to really get that figured out. So the classification of course is signal. This is important. And it's not a generic blockchain adoption necessarily. It's a concrete path for legal recognized equity rights to trade through blockchain infrastructure. Of course, US market structure legislation stalls. That's kind of where we were going with the whole um clarity act. Of course, his signal cuz that is important. The US Senate voted 49 to 50 against advancing the crypto

market structure legislation. That is super close. That is two votes, right? The dispute centered heavily on ethics provisions centered around political crypto holdings. Now, did they want to be able to hold them or did they want people not to be able to hold them? Right? That's what I really want to know. But why does that matter, right? Um, Blues Guy says, "How was the workout?" It was good. And I I definitely pushed it right to the wire running in the door and getting the stream going. Appreciate you asking. Uh why it matters though, agency exemption and regulatory interpretations may continue, but they are less durable than legislation that's actually passed, right? And more uh vulnerable to future administration. So if they don't get this passed with the current administration, we don't know what the next administration's going to look

like. And that could drastically change bullish or bearish, right? unresolved political risk there which is signal because that is highly important. So requiring so what is actually uh noise here is requiring verification. So 43 million and bit tensor quarter 1 revenue that is coin gecko's current news panel is surfacing claims that bit tensor reported 43 million in first quarter AI revenue. It also attributes TAL's rally partly to revenue reports and subnet buybacks. I could not locate a consider uh consolidated primary financial report though supporting that 43 million figure. So we're not exactly sure where they're pulling that from. Possible sources of in uh you know confusion I don't know why I can't talk tonight. include external customer payments, right? The dollar value of tow emissions, subnet alpha emissions, root uh root dividends, subnet token appreciation, projected or annualized revenue,

if you understand what that means, where they project the revenue based off of what it is. That can have something to do with it. And of course, self-reported revenue from individual subnet companies is self-reported, right? It's not audited. So those type of things can really be different than what they say they are on paper. Y'all are hilarious. Uh running from mosquitoes. Yeah. And here here in Florida definitely running from those mosquitoes. So this is unverified and potentially misleading. Just really wanted to point this out because we're talking about Bit Tensor. If you see them talking about this kind of so-called $43 million in quarter 1 revenue, we can't really seem to pin down where that's coming from and how legitimate that is. And they love in in headlines of news articles and stuff, they love to just put some

stuff together and run with it, even if it's kind of disingenuine or not fully true. Central question tonight is TA capturing demand for useful decentralized intelligence like is its product useful to people or primarily capturing demand for BitTensor's token incentives and that'll make more sense as we move along here. So what is BitTensor? Bit Tensor is a substratebased blockchain. You've probably never heard those words together unless you are somebody who is a developer or something like that and even working with Bit Tensor. But but run with me here because I think it'll make more sense to you as we move along. Remember, Bit Tensor is all about AI, so it's going to have some techiness to it. So, it's a substratebased blockchain coordinating specialized subnet markets. The work occurs offchain and the blockchain records participation, validator judgments, staking positions

and reward distribution. A standard subnet has a subnet owner defining the incentive mechanism, miners producing the required commodity, validators evaluating miners, right? And stake stakers financially backing the validators. So this is how the system works. a liquidity pool pairing tal the token with the subnet alpha token. The blockchain produces one block approximately every 12 seconds. So the current you know tokconomics as of today right now is the price of tal around $3 uh $318. Like earlier we went over a lot of this stuff exactly. So it's dropped a tiny bit since I pulled this information earlier today. All that's really important when it comes to these are max supply, circulating supply, market cap. That's basically all we really need. So we have circulating supply of somewhere between 1.3 and 1.5 million TOA tokens and a max supply of 21

million TOA tokens. They took that, I believe, directly from [music] Bitcoin because Bitcoin, if you didn't get the question earlier, can you name another project or cryptocurrency that has 21 million tokens? There's a few, but it's mostly Bitcoin that really cemented that 21 million number. So, the current percentage of circulating is about, you know, 55, a little bit over 50%. So, supply aggregators currently report slightly different circulating figures. This happens a lot. There can be all kinds of nuances in what is actually considered circulating, but it usually doesn't vary that much. If it varies a lot, you have what's like an overstanding circulating, and we'll go into that at another time. Bitensor's own documentation explains that the total issuance and circulating supply differ [music] because pool reserves and staked positions are treated differently. use rounded figures rather than pretending

one aggregator is exact. And if it's one, if it's 11.3 million TOAO or 11.5 million TOAO, that doesn't really make a big difference. It would make a big difference if it was like is it 11 million TOAO or 16 million TOAO. Okay, that would make a big difference. So, our first section, if you don't understand, if you're new here, the token autopsy has seven different sections. And each of them, we're going to give a score to each section. And those scores altogether will make up a final score for the project. So it can win really big in one category and lose a lot of points in another category. So product and adoption. So what it does and how well people care to use it. What the product actually does, right? Bitinser creates a standard or standardized method for launching

competitive markets for digital commodities. Potential commodities include anything from AI inference, computation, storage, prediction, training data for things like large language models and stuff, very AI, and um a model evaluation, agent behavior, financial intelligence, and scientific workloads, very techy stuff. And if you've ever been to the Bit Tensor website, you would know it's a bit of an information overload, unless you kind of already live in that world. That's why we didn't go to the website and read stuff directly from them because I think I would probably lose uh most of you within the first five minutes. [music] But hey, that's okay. Hope you're enjoying the stream. Smash that like button. So, the important the important product is not simply AI itself, right? It's these subnet specialized markets that can all kind of feed AI because that is the main

ethos or main idea of the project. But there can be other I've seen other subnets that kind of fit there, but then they also kind of do something else, right? They're specialized markets just like we've talked about. Avalanche has specialized chains. We've talked about many other project Arbitum. One of the big things about last night's token autopsy with Arbitum is that they have specialized chains and things that you can build on and really specialize it for whatever your use case is. This seems like the same idea but for AI related stuff. So the product is the infrastructure [music] for creating, judging, and funding competitive digital markets. How a subnet actually works, right? So we can't keep mentioning all of these subnets and not actually talk about what the heck a subnet is. So the owner defines the task and

scoring system. So when you create a subnet, and I believe it has to be approved through the foundation, right? It's not a launchpad. It's not like uh anybody get on there and launch something like a like a meme token like pumpf fun or something like that. It doesn't quite work like that. I believe everything has to be approved through the foundation. Anyways, the owner comes in defines the task in the scoring system. Basically, they say what they're going to be doing. Miners compete to produce useful outputs, right? The miners are involved with those tasks and validating that they're happening and stuff like that. Validators test and score those outputs. Yuma consensus combines the validators judgments. So that puts everything together up into step four. And then number five, step five, owners, miners, validators, and stakers receive alpha emissions. And

then the market demand for the subnet alpha influences its share of tow emissions. One of the big things about this channel that is actually really difficult with Bit Tensor is to take complex things and make them easily, you know, chewable, easily digestible and easy to understand. It's going to give me a run for my money tonight, right? Cuz explaining to you these subnets and what like necessarily Yuma consensus is, everybody's in different places. I always got to remember everybody's in different places in their understanding. So let's move along here. Evidence that something real is being built though. Bit tensor has working infrastructure, right? And SDK command line tooling and active miners, validators, stakers, and specialized subnet markets. Like we just covered an academic experiment using BitTensor's ORO subnet reported that subnet produced agent trajectories improved a quan 34B model.

So basically we're saying uh subnets worked really well in the trajectory of improving this model of AI task success rate from about 18% to 42%. So that was what they saw. They saw this growth in the success rate of the tasks, right? And don't sleep on this stuff, guys. I mean, Grock bots are out. AI agents have had their time in the sun and they will again. And when they come back, I have a feeling because Grockbot is now kind of like setting the standard, especially even in retail, anybody who's used Grockbots, that they're not going to be able to push in crypto these AI agents that don't do anything. Like anybody remember Siren? It didn't do anything that I know of. Anybody ever use Siren? Where like for example VVV? It's hot. It's gone from like $4 to

$32. All right. Or it went from like 11 or $12 to like 32 bucks cuz it really does something. It's basically decentralized chat GBT. Anyways, I wouldn't just throw your hands up in the air and say, uh, you know, understanding how any of this stuff works is only for the smart guys. I really just want to encourage everybody a lot of times the stuff is not as complex as you think it is. All right. But of course, even though Bit Tensor subnets, right, helped this Quan 34B model get a higher success rate in the task, it's not proof that every subnet is commercially valuable. But it is evidence that a subnet can produce useful research output rather than merely just circulating tokens around. Right? What remains unproven here? So what are we really looking for? The network does not

publish one consolidated customer revenue statement. Different subnets may have totally different things. So here's what we're really saying here and this is a key point for anybody really paying attention is that saying is bit tensor useful or not useful is difficult because bit tensor is made up of all the subnets. So one subnet could be highly soughta where another subnet could be borderline useless to most people that matters. So when you try to evaluate bit tensor, you have to understand that all the subnetss are their own working things, right? They're like cells in a body, right? The body is bit tensor, but the cells are the subnetss or maybe organs cuz there's not that many subnets. What is there like 42 subnets or something like that? Anyways, subnets individually may have real paying customers. They may not. They may

have free usage. They may cost you to pay. They might be subsidized, right, by grants. They may be generating revenue and paying for themselves. They may be token funded development, right? Or they may have internal or related party demand or they may have no meaningful external demand at all. Subnets are their own individual things. And that matters when you really try to talk about bit tensor like one thing. It's not subnet count, model calls, miners, and emissions are useful activity metrics. They are not subsidies for actual paying customer retention. Meaning, if we just come on here and disingenuously just start throwing all of these metrics around about a subnet gets this many us, that that's not really honest, right? for a token autopsy. What we really want to know is paying customers and how often they come back and

use the product again. Product to token value map. So this of course can be a little complicated. So the loop the first loop here the first thing we want to talk about is customer demand. Right? A customer needs something that you would need in AI like computation, data inference or predictions. The subnet produces that product. Miners produce validators score equally. So the miners and validators are working hand in hand. Payments may go to subnet company or the operator not automatically TOA token. So value reaches TA only if the subnet routes fees into [music] TA purchases or buybacks through the token. So TA has to be made a viable part of the subnet ecosystem or it's therefore not a part of the subnet ecosystem. So the loop 2 is token incentive. So we have customer demand what we just explained

and then we have token incentives right. So TOAO issuance is now because we've had a havinging in December 2025, right? 0.5 TOAO per block. And there's roughly like the amount of blocks per day. They vary, but if they're roughly every 12 seconds, they're going to be pretty close to the same every day. And that's about 36,000 blocks a day. So you can take 0.5 TOA, times that by 36,000, that's the average day emission. So that's the token incentive. Then we go to the subnet pools themselves. TAL paired with each subnet alpha token. That would be the pools where the liquidity sits. Alpha rewards. Owners, miners, validators, and stakers receive issuance of these rewards, right? That are being generated from each tow block. Staking demand plus root yield. So, this is genuine token integration, but most of the yield originates

from issuance, not customer cash flow. Blues guy with the super chat. I appreciate that, brother. I think he just wants to remind all of you that we have super chats. Don't forget that we have super chats. I'll be glad to look at anything you want after the token autopsy. If you just send in a super chat, don't feel like you can't do that or we can't talk about anything else. But of course, I have to do the token autopsy, right? So, real customer demand, right? The customer needs a service. We've been over this computation stuff like that. Subnet provides that service. Customer pays for that service and payment reaches the company owner or operator of the subnet. In order to understand token value capture, we have to understand how the value flows through the project. Although these things may

seem complicated, I don't see anybody else on YouTube really breaking this stuff down. on all these projects. You might have one person who did Tao in detail, but did they do 20 other projects in detail? So that payment only benefits Tao the token if the subnet deliberately creates a connection through. So here's what we're saying again. A subnet, a person comes in, they make a subnet on Bit Tensor, right? Maybe they need approval from the foundation, maybe they don't. We're recapping here. That subnet does something. Say it it it it gives computation, right? And say you're somebody who needs computation or maybe they have data oracle feeds or some kind of useful thing to AI, decentralized AI. We want to make that distinction. Then somebody pays for that product to the subnet. The subnet gets that money. The only

way that out of that subnet value is created for Tao, the token, the one you would probably be holding as most of you probably hold no subnet tokens, right? [music] Is if Tao denominated payments. So if payments are in Tao, that would be one way. If they purchase Tao, maybe they have their own treasury or things like that and they buy back basically TOA revenue funded TOA buybacks, right? So out of the revenue they buy TA which is what I was just saying. Alpha buybacks requiring TA liquidity. The alpha is the token of the subnet right they're referred to as alpha tokens. So if you buy that alpha token and it requires to liquidity then that would influence the towken fee distributed through onchain mechanisms burn stuff like that. the token incentive loop. What are we talking about? Crazy

pumps. We got some crazy pumps going on right now. Anyways, token incentive loop, right? So, we're talking about token incentivization and the loop that's created. Tow issuance allocated across subnet pools. Alpha, remember those are the tokens of the subnet. emission rewards participants. Stakers buy alpha with [music] TA alpha the subnet token. I want to make that clear. Demand influence future emissions. So the alpha token demand can influence future emissions. This is how the token incentive loops all around and over again. So this loop creates real token demand but it is largely indigenous, right? It lives inside its own ecosystem. Participants buy and stake tokens to earn other tokens. The key distinction is Bitensor has strong protocol level token integration. It has not yet demonstrated that all or even most of the value circulating inside the protocol originates from outside

customers. So, we're saying a lot of it almost seems like they're just passing the buck around. which is great if you're inside collecting those bucks, but long term for it to really sustain on its own, it's kind of got to get people from the outside to need their product and buy what these subnetss are doing. And then from there, you need subnets to create value for the BitTensor token if you're holding Tao, right? So, a revenue reality check. These three numbers keep confusing people, right? Customer revenue, root dividends, and new tow issuance. And this is the dilemma with the complication of Bit Tensor itself and the TA token consumer revenue. Each subnet may have different customers, different pricing, and different reporting of what how much money they're making, right? And of course a different way that they interact with

TA the token root dividend the official July 2026 snapshot a share of subnet alpha issuance those are the subnet tokens are called alpha issuant paid to root not sale revenue and then new tow issuance we talked about that 0.5 tow about every 12 seconds being created coming into supply inflation That.5 times about 36,000 blocks a day is how much emission. That's what we would call emission because it's not really inflation or deflation unless you know how much is being bought back or burned. You have to have both numbers to decide if it's inflationary or deflationary for the TA token. But new stuff coming out into the circulation is usually regarded as emissions. Again, another big word that really has a simple meaning behind it. So customer revenue [music] is obviously money paid from outside users for anything that they

provide computation interf uh interface data or another service that might be supplied by the subnets and that lives subnet by subnet right root dividend. And I wanted to get into this and I didn't want to go off on a tangent on that little graph there because I knew we would get into it a little bit more. So, Bit Tensor's July V441, which I guess is volume 441 release reported approximately 936 tow per day flowing to the root described as protocol revenue. Economically, that system represent roots share of subnet alpha inflation. It is not the same as revenue paid by outside customers. Yes, [music] I know that is a little bit confusing, right? These are the more technical dynamics of Bit Tensor as a blockchain and I'm not going to really go into it too much more because I don't

think that that's really value. The root dividend is not going to be a big deal for you. [music] I believe personally I believe holding Talo token Talo issuance right is that.5 time 36,000 Tao tokens created daily but what does that really mean let's look at it annualized issuance that's like if you project it out over a 12 month period right is approximately 1.3 million TOAO now we know there's about 11.3 to 11.5 TOA currently in circulation and there's only ever going to need 21 million TOAO. So growing at about 1.3 million TOAO is a big deal because that's how many years before you're 21 million and and then what then what's going to happen? And this is a little side note, right? Raising your crypto IQ for basically any uh other project, right? Because this can kind of be

applied. What is it going to look like? inflationary, deflationary for projects. When we see this market's been around 20 years, 25 years, and things really start getting close to their max supply or they're at their max supply, in my understanding, for a lot of projects, this is going to mean price growth, but that's yet to be seen for a lot of projects. Basically, you have a lot less dilution of coins coming into your circulating supply once you hit that max supply. It almost feels like you can only go deflationary. But that's a that's just a little side nugget, side salad for another time. The emission rate will decline again when total issuance reaches the next having threshold. That's another that's another thing. So 1.3 million when you have a havinging that'll be cut in half meaning it'll take longer

to get to that max supply. So you can't take 1.3 million towel and [music] just calculate that until it hits its 21 million maximum because there will be havingss and that will make it take twice as long. something that was built into Bitcoin that I feel like a lot of people don't really acknowledge the having genius when it comes to the max supply. They usually do it when it's regarded to scarcity of the product but it still creates scarcity which is good. There's a lot of things I'd really love to talk about in general with blockchain but we're going to stick to towel. So the honest revenue conclusion here is that Bit Tensor has an identifiable economic activity like there's things going on inside that blockchain. It does not yet have sufficiently standardized independently verifiable customer revenue reporting. It's

a lot of self-reporting from the subnetss which is [music] I don't know that's not really good to me. I'd like to see all that stuff audited. Right. So to justify treating every internal distribution as commercial revenue basically are they just passing the buck around inside the ecosystem? Are there actually demand from big commercial people? Right? Cuz remember we're talking about AI like this is not like no I I guarantee you none of you have ever woke up and said man I need to purchase some computational power today. Those are developer type stuff right? That is like running an application a big company that does something with AI type of thought. your average person has never woke up and been like, "Man, I really need to secure a data feed for what you know it it's going to be pertaining."

So, the point is it's it's mostly on commercial type avenues of money or revenue that Bit Tensor is going to need to secure and show that they can repeat customer because somebody might use them commercially, but if they don't really satisfy what they need, they're not going to use them again and therefore it doesn't really matter. So tokconomics and valuation is another category in the token autopsy. Of course, we've been over 21 million max supply emissions. Like this is a lot of repetitive [music] uh information here, but it is important to note again that there's no conventional team or venture capitalist unlock cliffs. Cliffs just mean a time when tokens are unlocked, usually meaning a lot of tokens are unlocked, right? And if it's given [music] to venture capitalists, uh, they're going to sell if they're up. That's how

that works, generally speaking. So, alpha supply, every subnet has its own alpha token, right? We've been over this. You have Bit Tensor, TA token, blockchain that's related to Bit Tensor, right? Every subnet has their own token. They have names Subnet 54, Subnet 12, Subnet One, right? But those are referred to as alpha tokens. When Tao the token is staked into a subnet pool, Alpha leaves the pool and becomes the staked position. This is probably going to go over some people's heads, so we'll move through it quickly. The position Tao changes value when the alpha/tow pool. You have to understand kind of how pools and liquidity work for this to really be valuable to you. Exiting can incure price impact, slippage, and fees. Each alpha token has its own emissions and a 21 maximum supply reward distribution. So a subnet's

alpha emissions are divided approximately 18% to the subnet owner, 41% to miners, and 41% to validators and their stakers. Part of the validator side can be reserved for root tow stakers. Tokconomic strengths though, right? One hard 21 max supply. That's that's a positive. I mean, we would consider that a positive for Bitcoin. So, why wouldn't we consider that a positive in other places? No traditional insider unlocked calendar. That's a great plus, right? A completed first having, right? 2025 December. Direct utility in subnet staking and liquidity. There's value there, right? a productive root staking mechanism and demand across an entire subnet ecosystem where the tokconomics are weak though. We just gave you all the bullish tokconomic stuff. Here's the bearish tokconomic stuff. The economic system is considerably more inflationary and complex than the 21 million supply comparison really suggests. Tow

holders must account for remaining TOW issuance, alpha issuance, staking dilution, pool liquidity, slippage, emission rule changes, subnet token risk, right? The risk associated with the individual alpha or subnet token, the difference between a nominal and executable value, [music] root reborn, right? So, let's get back to the root thing. The July 2026 volume 441 upgrade changed root staking. But what did it change? So before the change, root subnet, so roots subnet alpha rewards were automatically sold into TA the token. Root reborn or I guess revised instead holds these rewards inside validator specific baskets. root stakers receive an interest in a basket of subnet alpha positions. A future validator allocation decision can determine whether the rewards are deployed. More stuff that's kind of technical, but I do want to cover it because if somebody watches this and they're like a hardcore

Bit Tensor person, I don't want to not give them the information that they should have. Although they're probably reading their main website, right? probably in their uh foundation looking at every upgrade if you're really like a developer on bit tensor. So why it matters? Okay, the positive here is that it reduces automatic selling of alpha subnet tokens makes root staking more productive allows validators to compete through allocation skill and gives exposure to the wider subnet economy. But there's always a trade-off, right? It's always a give and take. So what is the take? That was the give. Root staking now resembles a managed basket of volatile subnet assets. Yield still originates primarily from emissions. Validators allocate decision introduces another layer of judgment and concentration and curation was initially gated and remains economically unproven. So the official 20 uh the official

supply I got things in the way the official July snapshot right reported that 5.4 [music] million TOAO staked on Root and that is 47.9% of issued TOAO at that time. So there's a lot of this TOAO staked on Root. All right, if that was a lot, we're getting into something that'll make a lot more sense to you. Competitive moat. Now the word moat throws people off. That's cool. Its ability to fend off its competitors and win over their competitors. Basically, what is the what is it doing right and what is it maybe not doing right? So, what is difficult to replicate when it comes to Bit Tensor from its competitors? One, a shared economic system supporting many specialized markets. I can't think of anything else inside decentralized cryptocurrency type projects that really is even competing. So, I'd be really

interested to see what its competitors are. Existing miners, validators, and subnet teams and stakers that would be hard to replicate by its competitors. Tow liquidity connecting every subnet. Permissionless participation, flexible incentive mechanisms, a recognizable brand in decentralized AI, right? the work that they put in so far for people to know who they are. The years of experimentation with machine evaluated work. An ecosystem capable of financing experimental services before traditional revenue exist is one of the things we haven't really touched on yet. But their ability to sub subsidize, right, ideas inside their ecosystem is pretty cool, right? It's kind of the equivalent of grants from a treasury and another type of business, but or a different type of project, right? But it definitely allows us to experiment with services and things that other places just don't have the money. You

don't have the money, you don't make a product cuz you don't have the ability to build it. and therefore we never really know if that was a good idea or not. So whereas the mo is a lot weaker against its competitor is that Bitzer does not automatically own the customer relationship. A successful subnet can face competition from open AI, anthropic or other centralized AI API. So pretty much every centralized AI can be a competitor to Bit Tensor. that is problematic for one main reason. So why would you choose anthropic or why would you choose Bit Tensor over Anthropic? Unless you're just heavily focused on decentralization unless you're like a visionary. Unless of course the subnet is doing something they can't get out of these companies. [music] Of course, AWS, Google Cloud, and Microsoft Azure, those are also competitors. Decentralized

computation networks, specialized data marketplaces, other decentralized AI protocols, open-source models running locally, its own miners or subnet operators selling directly outside a bit tensor. So if they sell their product because of the subnet outside of BitTensor's token, well that's a problem. So if the strongest subnet produ uh product, right, so let's just say the strongest subnet product that we could think of in Bit Tensor can operate profitably without the TAL token. Well, then the network must prove that remaining inside Bitensor creates more value than just leaving Bit Tensor. That is another problem for Bit Tensor, right? So, Bit Tensor's moat is strongest as incentive and capital coordination network. So, what is it doing the most, right? Incentivizing and coordinating capital in their network. The moat is weaker as a unified consumer product because every subnet has a different product

customer base and economic model. So, every subnet is kind of on their own sink or swim. better have something useful or you fade into irrelevance [music] and that does affect the TAL token. Security and decentralization is another category. We've combined security and decentralization. And you'll see why. Because we don't want to have 20 different uh categories to score I the gemstone here and short men. I have I am not even I'm not real sure what that means. Maybe it's a translation thing. But uh thank you for being here. Hit that like button. All right. So, what are the strengths? Open- source chain and tooling. Separation between cold keys and operational hotkeys. Independent miners and complete globally, right? They can independent miners can compete globally. Validators score output rather than trusting one provider. Yuma consensus clips outlier weights. Most people

won't understand that. Shielded sub uh submissions can reduce staking related MEV exposure maximum extractable value which is basically not good for the user most of the time. So the network records financial activity transparency is one of the biggest strengths here. So chain level centralization subtensor currently uses aura for blockchain production. This grandpa for finality that's hilarious and approve authority sets privilege administrator capable of changing the authority set. So this is the centralization within subtensor and some of the criticism that I've seen tao get before. Anyone can verify the chain but running a node or holding towel does not grant block production authority. Economic concentration yuma consensus is stake weighted that creates the risk of a large validator gaining more influence than everybody else basically buying influence. Delegation flows incumbrancy, right? So kind of unevenly and rewards become correlated with

stake rather than product quality. Validators copy successful weights rather than independently evaluating miners. and a published empirical empirical right study found significant concentration in bit tensor stake and rewards and concluded that the the compensation was heavily influenced by stake. This means that like there's a little bit of a way of kind of gaming the system in that there is a certain kind of concentrated people to say it one way who have most of the attention on this bit tensor meaning like I feel like in bit tensor a lot of what we're trying to say to simplify it is that there's a little bit of lack of outside people in it that care about it there's the people who have learned it and who are you know profiting from it and using it. And then there's everybody else who has

no idea how any of it works. Raising that crypto IQ that was a big part of this one tonight. This was a hard autopsy to put together, let me tell you, because there is so much information and technical stuff. Trying to decide what was important, what was not important. But I still want this to be rewatchable in the future and valuable to people who are maybe a little bit more tech-minded. Fun stuff, let me tell you. All right. software supply chain risk. In March 2026, a compromised maintainer credential was reportedly used to publish a malicious Bit Tensor wallet package to the PYPL. Version 4.0.2 was available for roughly 48 hours before it was removed. This was not to be clear a failure of the blockchain consensus but it was a serious ecosystem security failure because wallet software touches private

keys. The security uh conclusion here is that Bitensor has sophisticated subnet consensus and active security development, but it does not deserve a full decentralized credation, right? While chain consensus remains permissioned and privileged administration retains extensive authority. So we have a little bit of a problem. Although they have built a pretty cool product, there is some permissions here that you have to be aware of. And those permissions obviously giving people authority to change and move around different things. Catalyst and execution, right? Its ability to grow and execute. Emission gate V440, which I believe is volume 440, but I could be wrong. So, the emission gate reduces rewards to low demand subnets and redirects those emissions towards stronger subnets. So this is almost giving more incentive inside the subnetss themselves to be useful or get less emission rewards aka money in

the form of towel tokens. Right? So the object is to make idle subnet slots economically unattractive. So just being a subnet and doing nothing becomes highly unattractive while allowing productive subnets to earn a larger share. A bit tensor seems fair in my book. This directly addresses the criticism that every registered subnet just collects a passive emission without demonstrating meaningful value. Basically saying if you have a subnet you are just going to collect towel in emission rates even if you didn't do anything. That's a problem. So root reborn we talked about it a little bit. That is the V441. That's what the root reborn is. Uh the benefits of course productive tow staking reduced automatic alpha selling and validator competition. The validator competition seems to be the strongest thing we could possibly point to in this route reborn. Stronger connection

between tow and subnet performance. Same thing SDK version 11. Again this is the techy stuff that I was talking about. I was trying to decide what to put in here and what not to. So the unified SDK and command line package makes BitTensor easier for developers and automated agents to use. Nominated proof of stake. So the transition away from proof of authority could materially improve the decentralization score when it shows up. It's on the road map. But just because it's on the road map doesn't necessarily mean it's happening anytime soon. So the road map is not a fixed uh activation commitment, right? It's not in a smart contract and it's going to click in on a certain date. They have to make sure it all works and test it, test net, and then put it out. So who knows

when that's going to happen. So the score should improve only after the transition is live and authority concentration can be measured. Execution assessment because that's a part of this too. catalyst and execution. Bit tensor ship substantial protocol changes. The trade-off is that investors must evaluate a moving economic system whose emission staking and allocation rules have changed repeatedly. And so the more you keep changing things on people who are trying to build on your blockchain, the more you rather are going to attract people by what you've changed or scare them away because they're tired of it changing, right? They get it locked in, they got it working well, and then you change things and then that could change their revenue. That's a big deal. And I guarantee you those people who made a subnet and they're just sitting there collecting

those uh emissions in tow and then you change it, now they have to be competitive. Probably not happy. Uh which is fine, right? You can't reward, you can't reward slackers, right? and people trying to get something for free, but it still creates people inside an ecosystem who are unhappy and and that can have its reverberations, right? Uh Moses says that was a lot of info. Yes. When I when I uh was going to do Bit Tensor, I sat there for a minute and thought, do I really want to do Bit Tensor? And I was like, well, it's a big project. It's kind of really the allincclusive big branded or big AI decentralized token towel, right? Or Bit Tensor, the product and the blockchain. And I just felt like if I just shy away from things because they're intimidating to

the audience, how am I going to help you grow? How am I going to help you raise that crypto IQ? Honestly, if this seemed like too much information, hopefully you got something out of it. And most importantly, follow to the end because the score is going to matter more than everything else to you if you just couldn't retain the information. If you couldn't handle it, just look at what the score is and have fun with us after. Right? There's a silver lining there. Right? All right. Risk and unanswered questions is the last section. Let's get through this because I'm raising my crypto IQ at the same time. Not to get off on a big side salad, but I'm here for me to learn as well. I do put together the notes and stuff, but I don't always get every

single little detail. Repetition is the father of learning and the mother of skill. So, I need the repetition as well. Just going through this stuff once or twice to set up the stream is not enough for me to really lock in and be able to remember it off rip. So external demand, how much revenue comes from customers who would use the product without token incentives. That is one of the biggest things. Revenue routing, of course. When a subnet earns outside revenue, does any of it create anything for Dal token? Subsidy dependence. Would miners continue providing the service of mining if token emissions fell very sharply which is what's going to happen if they stop subsidizing measure measurement gaming right so can miners optimize validator benchmarks without producing something customers actually value basically when the money runs out of subsidizing

is there anything left to bit tensor [music] that is like high IQ real serious question pertaining to Bit Tensor and the Tao token specifically validator concentration. A small number of highstake validators materially control incentives. Chain authority. Will when will the proof of authority be replaced with the proof of uh stake or nominated stake, right? Alpha liquidity. Can large alpha holders exit a reported values without sur severe price impact? So basically saying if an alpha token is attributed to a high value, how much like slippage are you getting? Are you actually getting that value when you try to move out of that alpha subnet token into TA? Economic complexity seem to be everywhere if you ask me. Can ordinary users accurately evaluate TAL? Uh if they're not watching this token autopsy and they're not a developer or somebody who's tech-minded,

I'm going to go with no. But that's what I'm here for. Can they evaluate alpha root baskets? I mean, come on. Root baskets. I explain to you what they are. Probably you still have no idea what they are. Emissions and subnet specific risks. I'm not going to pretend like this token autopsy is super easy for the average person. Regulatory risks. Of course, subnet owners could be treated as issuers. That would be a problem with regulators. managed service companies or operators of investment like token markets which even if that doesn't shut them down it's going to force them out of the regulated space which is a problem. uh reporting quality. Of course, there's a lot of self-reporting and that is a problem because we don't know if that's paying customers, reoccurring revenue. We just don't even know how real it

is. Related third party activity. The strongest bullcase, let me give it to you straight. So, if you zoned out, zone back in with me. We're wrapping this up. Strongest bullcase here. Bit tensor is building an internet native alternative to centralized AI economies. And I feel like that's about as valued as people value not using a centralized AI economy. Who's really that's I think more of the re the the the revolutionary or the the the person who's thinking long term who is very excited about the future. Maybe they understand blockchain technology and they're looking at how it applies to AI. But your average person using chat GBT probably not concerned with the centralization of anthropic which is claude or open AI which is chat GBT right they're not really concerned with those type of things they just want to work

when they go to use it so instead of one corporation deciding you know which models receive the funding which tasks can contribute who owns the output which contribut contributors are paid which a central centralized company is going to decide that bit tensors allows the competitive markets to discover useful products. The idea is cool but it's very experimental. TAL the token gives those market shared capital liquidity and security. So the whole idea of the subnet and the alpha tokens getting shared liquidity from the TA token is a very interesting experiment. temporary emissions may be the mechanism that finances the experimentation until a successful subnet develops real tokens. So what we're really looking for here inside of TA is people to build something as a subnet. Bit tensor gives them the opportunity to have a place to build it. So how

most cryptocurrencies are a new startup company per se, even if their product they sell is digital and Bit Tensor, the Bit Tensor blockchain is the home of all these new startups that are specifically targeted towards decentralized AI. The goal is that they have a place to experiment and build subsidized mostly through Bit Tensor. If they build useful products as a subnet, then that will give Bit Tensor as a blockchain a reason to exist, aka value. If the subnet can't do that before the money runs out, I see I see it collapsing. I mean, that's a bold statement. So, I want to pre-reference that with I think that they're going to find ways to be useful. Decentralized AI for sure has got to have a market. It's got to be somebody out there who needs a decentralized AI versus a

centralized AI for whatever that may be. But you do have to realize there's a lot of subsidy going on here. And if they can't create any useful subnet products, it's it's just an experimental game, right? And the game will be up. All right. Really was trying to wrap that all together. I don't know if I connected all the dots, but it sounded pretty good. So if several subnets become globally competitive businesses, right, each subnet as a business and route economic value through TA, then TA wins and the BitTensor blockchain has a reason to be around and that could become the coordinated and reserve asset for the entire D decentralized AI economy. What's up CCP? Yeah, we were just talking about you a little while ago in the chat. I saw it. I didn't acknowledge it, but I did see

it. strongest bare case though, Bit Tensor may be creating a circular economy, right? Uh in in a lot of things that circular nature, what we call um wash trading or something like that, right? You just take the same dollar and just keep going around and around and around with it. Uh they do it a lot to try to drive up like daily um Oh, my brain is failing me. What are they called? I haven't eaten much today. Uh >> [sighs] >> volume. Yeah, you know, you know, uh I I need to eat something when I can't think of the word volume. So, you know, wash trading creates a lot of volume. I'm just trying to demonstrate the circular nature of something, right? So, Bit Tensor may be creating a circular economy. This is the strongest bearish case. Ta issuant

fund subnet pools, right? Alpha emissions reward the participants. Participants buy alpha to earn more emissions. Alpha demand determines additional emissions. Internal token activity is interpreted by or as product demand. Under this interpretation, the system is excellent at distributing tokens, right? It creates tokens and it distributes them. That part is for sure happening. But it hasn't proven that the outside world needs enough of its product to support the valuation. If external revenue remains small relative to the emissions, lower token prices could weaken the economic incentive holding the token to network together or holding the network together. So basically, it's saying this. If all it's doing is creating tokens on a daily basis, remember 0.5 per block, 36,000 blocks roughly a day. That's a mission. and that all it's doing is making tokens and kicking them out to the to the

subnets. If those subnets never make any value and bring any value into the ecosystem, they're just going to suck all the volume out and they're going to sell it most likely and the price of tal will go down. If the price of tal goes down considerably, then the emissions of more tal will be worth less. And if they're worth less and this continues to to bearishly spiral, it'll get to a point where Bit Tensor is not or where TOAO the token is not worth anything and the emissions that the subnets are getting from the blockchain are not worth anything or not worth much and so they won't have any reason to be there and they will go somewhere else or they will give up on running a subnet. And that would pretty much that is the biggest bearish case

here is that would pretty much destroy Bit Tensor. Now, I'm not trying to be all doomsday on you. I'm not trying to say that that is going to happen. So, everything we laid out to be as fair and transparent as possible, we have the best counterargument that we could come up with. So, earlier infrastructure networks normally require subsidies. And I want to be very clear about that. it subsidizing this experimental place for all of these decentralized AI subnets or companies to come and build is very very normal in tech, right? That's a very normal thing inside tech. Usually we would call them grants or something of that nature. They just have a whole network and system. Bitcoin mining rewards, liquidity mining programs, and venture-funded technology companies all spend heavily before producing sustainable revenue, right? So, I like that they

tied in also the Bitcoin mining rewards because that really touches home inside of cryptocurrency. If you're going to put together a warehouse, buy all of these GPU rigs or whatever you're going to mine Bitcoin with, uh, you're going to pay out a lot of money before it all gets wired together, put together, turned on, and makes any money. So, it is not uncommon for these subsidies to exist inside a expanding or experimental or building technology. demanding mature revenue from every bit tensor subnet could today ignore the value of research experimentation. Right? the things that are produced by having this is a big point I want to drive home. Um that there is a value that is hard to put a price on, especially when everybody inside crypto pertaining to Bit Tensor is so heavily focused on making a dollar.

the translation of value of an open decentralized place for people to experiment and build is not going to click with your average investor because they're like, "Yeah, yeah, yeah, that's cool. You're going to make something with decentralized AI. Yeah, that's great. Uh, where's my money?" That they're just going to stand there and knock out the door and say like, "Okay, can I have some money now? Can you go up in value?" And that really makes it hard for anybody to understand the value of Bit Tensor outside of TAL going up. And I'm going to leave it at that. So open competition, new data sets, lower cost inference, permissionless participation, and products that have not yet found distribution are part of this strongest counterargument to everything that we just said. Evidence that would change this conclusion. Audited or verifiable subnet

level revenue. We need audits for the subnet revenue. Reoccurring customers outside a bit tensor ecosystem. So like a boom in some kind of decentralized AI revenue funded tower alpha buybacks customer retention after subsidies decline. NPOS which is the nominated proof of stake successfully replacing chain level proof of authority lower rewards and validator concentration and standardized reporting across major subnets. All these things would improve what Bit Tensor has going on. Let's just run through the scores real quick and get to our final score. Uh, Blues Guy says has nothing to do with food. Yeah, I mean it's it all goes hand in hand. That's the parasites talking, bro. I have been on a parasite cleanse now for like a week or two. So, hey, maybe it's a it's a die- off product, right? All right. I I got it right

here. Just so y'all know that I'm not just making stuff up. We got the black walnut. This is a super side salad conversation right here. But we got the the clove, the wormwood, the black walnut. All right, [music] so getting back on topic, let's talk about Bit Tensor score here. We'll run through this real quick, give you a final score, and you'll know where it sits compared to everything else. And does it get a pass, a watch, or a a failing score, but we use a nicer word, right? So, it gets a 15 out of 20 for utility and adoption. I think that's a pretty high score, honestly. Token Value Capture gets a 15 out of 20, which is impressive. I I thought I think it should I thought it would be a little lower, but when I read

it's um because it gives a breakdown for each one of these and they will be in the Discord and [music] on the Twitter the next time I get to spend an entire day working on my YouTube channel and Discord. [music] Uh tokconomics and supply 12 out of 15. Competitive moat ability to fend against its competitors 12 out of 15. So far these all seem like great scores. Security and decentralization a five out of 10. And there's obvious reasons for that. A lot of it having to do with the control that administrators have, right? Catalyst and execution, eight out of 10. And then the last risk and unanswered questions, five out of 10 seems to be a pretty common score for most projects. So here's the breakdown. landing it a 72 out of 100, giving it a watch verdict. And

I'm not going to go much further at all here when it comes to Bit Tensor. It is already 10:00, right? We started at 8:30. You do the math. And there was a lot of information to unpack, but I had to do it because I want to know this information myself. Now, it gets a watch verdict and it's very close to that 80 out of 100 or higher score to get a passing verdict. I would say that I really like the way that I set this up because to get a passing verdict is difficult. Like, there's not many projects that pass this token autopsy. But it's good because what good would it be if we made it the bar to pass easy and a bunch of products passed with a passing score and didn't necessarily exemplify token value capture in

an ecosystem for a token. Um, when I talk to normal everyday people, I realize how far in advance um, a lot of this stuff is. Hey, you rather want to grow and learn and you want to raise your crypto IQ or you don't. I'm here showing up daily for myself. So, I hope you guys feel the same. Now, Melissa, please tell me the name of the Actually, I can just go um I can go to the That's what I'll do. I'll go to the Discord and pull up the information so you don't have to get me anything unless you really want to put a link in the chat for me. All right. So, if you'd like to see what the heck is going on and see all the things that I post and also see uh what's going to

go down today, then you're going to want to check out my Twitter, which I am getting way more uh active on. We're we're going to hit this thing hard and really try to grow. It's a little bit discouraging. Like, even if I go to like my own posts and I try to boost them, I can't boost them. And I literally had to go to Grock who is a part of X, right, and ask it and figure out why it won't let me boost my post. It's because I'm cryptocurrency type niche, right? And that tells me immediately what I already knew about X and about all the other platforms for that matter. There is a heavy heavy um suppression of pages and channels and everywhere you go. Doesn't matter if it's Tik Tok, it doesn't matter. Tik Tok is the

worst. I will post um a real or something and it'll get zero views. I I don't even want to go into it because um I don't think most people understand how the algorithms on these social medias are choosing what to push and what not to push. But just know that if you see low numbers on your favorite YouTuber and cryptocurrency and stuff like that, it's because they're they're suppressing it uh big time. But I didn't come here to talk about that. I I'm full of a lot of things to say tonight. Anyways, wow, this video hit 1K. I love to see that. Follow me over on Twitter is was my main point, right? And that is ground crypto or just type in cryptoron. See the blue check mark. I only do have 182 followers even though I post almost

I post almost every single day now every single day for a very long time. And uh for some reason you don't get a lot of reach on Twitter. I get better reach on like Facebook than Twitter. That's crazy when everything relevant for cryptocurrency lives on X. All right. So, let us get to what Melissa wanted to look at tonight, which I thought was highly important, and you'll see why it's highly important. You never know what kind of value you're going to get. Where did you post this? >> Oh, here it is. Yep. So, it's another launchpad. I'll admit I didn't get a ton of time to look at it in advance. So, we're going to check it out. Small spark big market. Ember, embercurve.f fun. That was a commercial that I'm I'm sure Ember is sending me a check

in the mail. Uh, I have no idea what this is other than you said it was a launchpad. Let's see what we got going on here. We got cooking. Let's go to cooking. any game you play. I like the cooking skill because you can make your own food and you know we love DeFi gaming. Oh, wait. This doesn't have anything to do with gaming. Cooking is what things that are pumping. There are tw 2,918 coins on curve right now. Expect that number to absolutely explode. Blue Sky says, "Spank that like button." That's hilarious. Ah, it's been a slow It's It's really funny. Like, Monday was pretty slow uh for viewership and people being here, our regulars. And then Tuesday is winding up better, but also a little slow. I noticed some people, I don't know where Plague Dogs is

at or 007zo. Uh, and of course, we're all busy. That's no shade to anybody. Um, heck, today I had to run from the gym to get here in time. Uh, I almost didn't show up for my show today, but I got to make it happen for all my undergrounders, right? But anyways, it's just really interesting in a time where we've been pretty bullish. Is the bullishness cooling off even though like the market is still holding up? Uh, people are they starting to take it for granted? Let's check that fear and greed index because that fear and greed index will really tell us that. And it looks like Ember has broke Google Chrome. Something broke Google Chrome. >> Oh, Anoma is up 6% today. I like it. >> Dedication with a French accent. Now it's 10. and cook it. All

right. Did What is going on? [clears throat] All right. We have had zero problems here. I opened Ember and it just like broke the computer. And I have a good gaming computer. Shake it like a Polaroid picture. What are you, Andre? Outcast. Andre 3000. Well, I don't know why this is not working. So, we got Magma, Calcifier, Walter Worm, Win Moon. Hey, CCP, there's your token. Win windm moon. I feel like he says that all the time. And imburn. Like ember but imm. And that's all I can see right now as everything is frozen. Although I can see the stream on my TV and it doesn't seem frozen. Blues Guy says, "People are so busy." And you are busy, Eugi. Oh, Blues Guy knows firsthand how busy I am. Uh I I don't I don't I don't want to

brag about how busy I am. That's weird. But uh I'm very busy. I don't I don't know what to do other than to hang out and chat with you guys since uh the computer is frozen. I really wanted to look at this for you, Melissa, but it may have to happen another time. And yeah, I know people are busy. I'm not discouraged, guys. I'm not discouraged. Like, the beautiful thing about this channel is I show up to educate myself and learn every day. Today was a great example. Uh my head hurts from all the information and and and facts and root dividends and root reborn and uh V441 and uh you know delegated proof of stake or nominated proof of stake proof of authority like all these factor. It's a lot. I understand that. That's why I say you

got to come daily and hang out with us and raise your crypto IQ slowly, right? You can't expect to come to a stream like uh a token autopsy, a breakdown, a bit tensor and its token and its relationship and expect to grab it all if you're not showing up all the time. All good. Thanks for uh looking anyway, says Melissa. Yeah, I I I thought we would kind of even out by now. I'm not exactly sure what the heck is going on. Let's see if we can get the task manager up. The last time this happened, I uh couldn't even end my stream the last time this happened, which was pretty funny. I will admit that my computer's been running for like three or four days, and that's usually when it gives me trouble. But when you got 10

minutes to go live, you can't really restart the computer. If you could see behind the scenes all the things that I have going to make the stream work, right? [music] To make the all the information happen. It's a lot to try to get all of that running in say 10 minutes. Not easy. Says, "Bro, we are never too busy to learn what we long for." Hilarious. XRP 589 by the end of the year. Yeah, you forgot the decimal blues guy. It's $5.89 by the end of the year. I'm messing with you, but if it was $589 by the end of the year, I'd still be a static. I I hold some XRP. I do hold some XLM. Um I'm definitely guilty of spreading my my capital a little thin sometimes, but I still I still got some good concentration

of a few things. Now, what's a lot of money is different to everybody. And that's why I don't try to like put number like you should have $10,000 of this or that or the other, right? Uh because for somebody $500 in something, put it another way, for somebody turning $1,000 into $100,000 or $1,000 into 20 or 30 is a lot. For another person, turning a hundred bucks into three grand is a a lot. like equivalently in their life, it's like the equal amount of money and they wouldn't have the thousand to throw in a coin anyways. And the computer's still lagging. Hey, it's decided it's going to work. I think I I'm kind of scared to click on anything. The other day when this happened, it was so funny. I don't know why like we had problems and then

the chat rate went up. Everybody was chatting and then tons of people started coming into the stream and I was like frozen. I like couldn't even I could talk but I couldn't really do anything else, right? It's kind of crazy. Uh, what can I close? Let's close trading view. I hope for you, my man. Let's go. CCP is not in here cracking jokes today, huh? Blues guy send in a super chat. All of you know that your support means the world to me. Absolutely. Uh let's see. Task man. All right. All right. All right. All right. What can I close? I like at this point I kind of have to like try to close anything I can [snorts] that'll give me more memory. All right, that should be good. Looks like we at the fear and greed index at

78. Remember though, money doesn't define who we are. How we treat people does. Amen to that. I believe in that heavily for sure. Money is a vehicle of stored time. That's all it is. All right. So, the fear and greed index is 78. Man, we are in extreme fear. Uh, this might be the highest it's been in a really long time here. If we hit this. Yeah, look at that. 78. Does that mean that a crash is around the corner? Or a pullback? A pullback? I don't want to say crash because a crash implies something more monumental. Uh, let's say a pullback. But if we could hang out here, if we could just go back into neutral and sit between neutral and greed and like a little extreme fear and back and forth, that could be pretty positive. Are

we seeing a super cycle or is this just the beginning of the bull market? Remember, bull markets usually have 30 to 40% pullbacks in them. People forget that. And if it is, well, I'd say that the timing of the bottom is pretty perfect. It seems like the cycles have shifted up a little bit. Like they start a little earlier and they end a little earlier. When is the next Bitcoin having? Anybody know? That's something you would think I could pull off the top of my head, but I I actually don't remember. All right, let's see. Can we go back to Magma without destroying everything? It looks like we can. O, it just froze everything again. And that was a bad idea. Shouldn't have done that, huh? All right. Anyways, we're rolling into 10:30. I hope you guys enjoyed the

stream due to uh technical difficulties. We'll go over Ember another time when my computer hasn't been running for like 4 days straight and I don't have a bunch of Grock bots doing things in the background. Stay underground. Stay crypto. Uh hopefully I'm going to even be able to end this stream and I'll catch you in the next one. of course, raise that crypto IQ, buy a membership, and get your custom emojis, and we don't have to bring ads back. Also, there's going to be uh just for the token autopsy stuff, I think once we get to about 40 token autopsies done, that's going to go behind a payw wall. It'll be small. It'll be if you have the lowest membership and up. Basically, if you have a membership to the YouTube channel, you'll have access to it. If you

don't, you won't have access to it. But we got a while to go from there. That'll be when we get around like 40, maybe even 50 because once we've done that many and you can just look at the chart and see what has the best score that has value. And uh I want to do this full-time, guys. Some of you might see uh me just wanting to make a dollar and other people might understand the passion behind what I do. And I want the ability to focus all the time on this. And I'm only going to get that if we can generate some revenue, which means I have to generate value. And it's like a token autopsy, but for myself. I'm the I'm the the company product. And the token is the YouTube channel. Oh man, I got to

close this uh ember. Everybody logged off. I got to remember to cut this out. How's that music going? We still have music. Who's still here with me? Drop something in the chat. Blue guy says, "Suchi I'm stuck. The computer's frozen. Yes. Music. Oh, that's good. Technical difficulties. Yeah, this happened to us the other day. You know, it's all the times. What? We've been doing this show for like nine months, 10 months, almost a year or something. Uh, this is the second time this has ever happened to me, which is pretty interesting. X is up a little bit. Anybody see the pump on XN? It was up 6%. Now it's like a little over 5%. A little pullback. Yeah. 6 hour stream cuz I'm h I'm held hostage here by my computer. That'd be pretty funny. No, we'll get it

to work here in a minute. All right, guys. I got it to work. Stay underground. Stay crypto. I'll catch you in the next one. Raise that crypto IQ. Buy a membership. All of those fun things. [music] Underground crypto out.