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A recent idea discussed by Bittensor founder Jacob Steeves, aka Const, in a Discord stream has prompted debate across the ecosystem: should Root Claim APY be decreased to 0% in order to encourage more capital to move into subnets?
He framed the idea around encouraging capital to move from passive TAO staking into subnet participation, where price discovery and economic experimentation are intended to happen.
To be clear, no formal proposal has been introduced, this is only a debate at this point.
Today, more than 5 million TAO sits staked in Root, where holders can earn comparatively stable yield without taking subnet-specific risk. Supporters of lowering Root APY argue that the structure made sense before Bittensor had a functioning dTAO economy, but believe more capital should now flow toward subnets, where new products, applications, and incentive structures are emerging.
Another argument focuses on capital efficiency. Some community members believe even modest capital rotation into subnets could meaningfully increase liquidity and participation across alpha token markets. Supporters generally frame this as necessary for improving price discovery and strengthening subnet economies.
There's also the supporting argument that Bittensor increasingly resembles a venture-style ecosystem, where participants take varying degrees of risk across early-stage ideas. Under that framework, subnet participation may carry greater volatility, but also potentially greater upside compared to passive Root staking.
Supporters also emphasize that reducing Root APY would not require anyone to move into subnets. Users could still hold TAO in Root or unstaked, but the incentive structure would change to favor more active ecosystem participation.
Critics, however, also present valid points.
For many TAO holders, Root serves as a lower-risk way to gain exposure to Bittensor without taking on subnet volatility. Alpha tokens can experience significant price swings, and some users report negative performance even while holding leading subnets over recent months.
Several critics argue that reducing Root incentives before subnet markets become more stable may discourage long-term holders who prioritize lower volatility and capital preservation.
Others question whether the current subnet landscape can absorb meaningful capital inflows. While many agree subnet quality has improved, skeptics argue the ecosystem still lacks enough proven, investable subnets to naturally attract large amounts of Root capital. Furthermore, they argue that, instead of reallocating into subnets, Root holders will simply choose to hold TAO without staking or reduce ecosystem exposure altogether.
Instead of changing how Root functions, critics say that if subnet quality continues improving, capital will naturally flow into those markets over time.
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