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Frank Schuil, founder and CEO of Safello, the leading cryptocurrency exchange in the Nordics, has joined the growing discussion surrounding Bittensor's proposed Root Reborn upgrade, expressing concerns about complexity, predictability, and the pace of change for institutional investors.
Schuil's comments came in response to a recent analysis published by Yuma, which argued that Root Reborn introduces significant moral hazard, regulatory, and structural risks while calling for a more formalized process around major protocol upgrades.
Bart Hillerich
What Is Root Reborn?
Root Reborn is a proposal from Bittensor co-founder Const that would fundamentally change how root staking rewards are distributed.
Today, rewards earned through root staking are automatically converted into TAO before being distributed to stakers. Under Root Reborn, validators would instead direct rewards into validator-selected baskets of subnet tokens. Stakers would accumulate exposure to those baskets while retaining the ability to redeem back into TAO.
Supporters argue the mechanism could reduce ongoing sell pressure on subnet tokens and transform root into a capital allocation layer for the network. Critics have questioned whether the design introduces additional complexity and risk.
Bart Hillerich
Concerns Around Complexity and Institutional Adoption
Schuil said many of the concerns raised by Yuma align with conversations he has previously had around Bittensor's evolution.
"This echoes my sentiment on pace of change and predictability for institutional investors," Schuil wrote. "I understand and appreciate the notion of making big changes now before takeoff, but it creates uncertainty while introducing increased complexity that may have unforeseen ripple effects."
According to Schuil, one of his primary concerns is preserving a simple entry point for investors who want exposure to the broader Bittensor ecosystem without actively evaluating individual subnets.
He referenced a previous discussion with Const, noting that the disappearance of traditional root yield could make TAO less attractive for investors who are not yet comfortable taking direct subnet exposure.
"The solution proposed is a good attempt to get the best of both worlds, but it turns an index-like token more into a token with concentrated subnet bets," he said.
Bart Hillerich
Preserving the Index Narrative
A recurring theme in Schuil's comments is the idea that TAO currently functions as a broad ecosystem exposure vehicle.
While he acknowledged there may eventually be significant demand for more sophisticated allocation strategies and structured products, he questioned whether making validator-managed subnet baskets the default experience for root staking is the right move at this stage of the network's development.
"Personally I like the different strategies offered by the likes of Mentat Minds and can see demand for structured products along the same lines in time when TAO is at 10x market cap, but making it the default now for root staking muddies the water a bit."
Schuil suggested several alternatives, including equally distributing purchases across all subnets to preserve the "subnet index" narrative, while also leaving open the possibility that maintaining the current system may be preferable.
Ultimately, he expressed support for broader ecosystem discussion before major decisions are made.
"Generally I'd favor simplicity/reducing complexity. Either way I agree that wider community input as proposed by Yuma is healthier, even if it feels slower."
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