Bittensor Subnet 49 Takeover: Polaris Deregistered, Nepher AI Assumes Ownership

In a significant demonstration of Bittensor’s competitive subnet dynamics, Subnet 49, previously operated by Polaris Cloud, has been deregistered after its four-month immunity period expired. The deregistration, triggered by sustained low emissions, has opened the slot to Nepher AI, which swiftly re-registered the subnet, marking one of the first notable takeovers in the network’s history.

Transition Details

Deregistration Trigger: Polaris, a decentralized GPU compute marketplace serving the Solana ecosystem, was automatically removed after failing to maintain competitive emissions. This mechanism ensures that underperforming subnets are replaced by stronger projects, reinforcing Bittensor’s incentive-based design.

Re-Registration Cost: Nepher AI secured control of the slot by burning 287.992 TAO, valued at approximately $139,000 USD, signaling the growing value of high-performing subnet positions.

Current Status: The subnet remains inactive as Nepher AI finalizes activation and confirms technical ownership. Trading of the subnet’s α49 token has been paused, with all prior staking positions automatically liquidated back to TAO. The seamless execution earned praise from community participants for the network’s reliability and transparency.

Market and Community Response

Reaction across Bittensor’s community has been mixed. Some users expressed disappointment at Polaris’s exit, noting its active developer presence and high engagement metrics. Others viewed the event as a healthy shift, emphasizing the protocol’s adaptive structure and competition-driven growth.

The event mirrors a similar handover of Subnet 100 earlier this month, highlighting an emerging trend of subnet recycling and competitive slot turnover.

Broader Ecosystem Impact

The transition reinforces Bittensor’s 128-subnet limit and the system’s emission-based performance model. Following the news, TAO’s price climbed over 10%, rising above $500, driven by heightened subnet demand and a broader uptick in network participation.

Analysts noted signs of a bullish momentum, with TAO breaking key resistance levels and signaling a potential continuation pattern on daily charts.

As Nepher AI prepares to activate Subnet 49, expectations center on what new compute or inference services it may introduce to the network. The takeover showcases how Bittensor’s design continues to evolve through open competition and real-time market discipline.

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