A top Bittensor validator has published a detailed critique of the proposed Root Reborn upgrade, warning that the design introduces governance, regulatory, and market structure risks that outweigh its potential benefits. Yuma, one of Bittensor's largest contributors and the network's third-largest validator, has called for additional testing and risk analysis before the network considers the upgrade. The validator group stated that 'In its current form, the Root Reborn proposal carries substantial unmitigated risk that outweighs its benefits' in their detailed critique of the proposed changes.
The existing Bittensor system funds yield payments by selling subnet tokens for TAO each block, creating a constant selling pressure that drives down the prices of the very tokens its subnets are built on. As reported by TAO news, this mechanism means the network is constantly selling the very tokens its subnets are built on, which has been negatively impacting subnet token valuations. The new proposal addresses this issue by implementing a different approach to yield distribution, with the Root Reborn proposal stopping automatic sales and allowing validators to set allocation weights across subnets instead.
Under the Root Reborn proposal, each validator would choose a set of subnets to support much like picking holdings for a fund, with the yield reinvested into the chosen subnets held as a basket that compounds over time. According to the proposal details, stakers would receive redeemable claims on those positions rather than direct TAO rewards, while validators would turn from passive yield pipes into active curators since subnets they back would attract fresh capital. The proposal states that root emissions would be deployed into validator-selected baskets of subnet tokens, with new tools to track validator basket net asset value, subnet allocations, staker liabilities, and network-wide basket performance.
Yuma argued that validators would gain significant influence over capital flows inside the Bittensor ecosystem, creating incentives that may not always align with delegator interests. The group warned that validators could direct allocations toward subnets in which they already hold positions or accept external incentives from subnet operators seeking additional capital. Yuma compared the structure to the lessons of the LIBOR scandal, stating 'Moral hazard is acute' and that validators should be expected to maximize their own financial returns. The organization also questioned whether validator performance could be measured effectively under the proposed system, noting that validators would not control redemption timing and that new emissions would represent an increasingly small portion of large validator baskets over time.
Bittensor's TAO token has fallen 28% over the last 12 months, while bitcoin has fallen 38% over the same period, according to TAO news data. The token's staking yield currently sits around 17% if users hold TAO for a year. The code submission is currently targeted at a test network rather than the main one, with an early automated review flagging two serious issues that have since been fixed. Yuma urged the OpenTensor Foundation and network stakeholders to consider alternative approaches that allow stakers to express subnet preferences directly through opt-in mechanisms rather than concentrating allocation decisions among validators. As of press time, TAO is down over 6% as traders weigh the recent concerns around the Root Reborn proposal.
