eTAO Gives Subnets More Control Over Emissions as Gamma Development Advances

Bittensor is introducing a new upgrade that gives subnet owners greater control over how token rewards are distributed among miners, validators, and subnet owners.

Known as eTAO (Expressive TAO), the upgrade was discussed during a Novelty Search session featuring the Targon (SN4) team, Const, and other Bittensor contributors.

The discussion also covered Gamma, a proposed system that could allow Bittensor subnets to purchase computing, storage, and other services from one another using their token emissions.

How eTAO Changes Subnet Rewards

Bittensor subnets have traditionally followed a fixed emission distribution, with 18% going to subnet owners, 41% to validators and their stakers, and 41% to miners. However, different subnets have different needs, making a fixed structure less suitable for everyone.

eTAO changes this by allowing subnet owners to adjust their reward allocations within defined limits:

1. Miners: At least 33% of emissions.

2. Validators: Up to 50% of emissions.

3. Subnet owners: Up to 33% of emissions, with additional restrictions for certain subnets.

For example, a computing subnet could increase miner rewards from 41% to 62% to attract more computing power, while reducing validator rewards to 20% and maintaining an 18% owner allocation.

These adjustments can be made approximately once every seven days, with safeguards protecting root TAO stakers’ rewards. This gives subnets greater flexibility to reward contributors based on their business needs without increasing total emissions.

How does eTAO protect root TAO stakers if subnet owners can reduce validator rewards?

Under eTAO, root TAO stakers receive their protected share of emissions before the remaining validator rewards are distributed. This share is calculated automatically every block using the network’s existing rules.

For example, if a subnet reduces validator emissions from 41% to 20%, root stakers would still receive their baseline share of approximately 5.4%. The reduction would instead affect alpha validators and their delegators.

Subnet owners also cannot set validator emissions below the protected root share. However, if that baseline later rises above the allocated validator share, root payouts can become temporarily capped.

This means eTAO protects root stakers from direct changes made by subnet owners, although it does not guarantee fixed returns under all network conditions.

Gamma Could Allow Subnets to Purchase Services From Each Other

The session also discussed Gamma, a proposed system that would allow Bittensor subnets to use part of their emissions to purchase services from other subnets, including computing power, storage, inference, and bandwidth.

For example, a subnet could purchase computing power from Targon (SN4) or storage from Hippius (SN75). Under Gamma, part of a subnet’s alpha emissions would be used to buy another subnet’s alpha tokens, which would then be burned to create prepaid usage credits called Gamma tokens.

This would generate additional demand for the tokens of service-providing subnets while allowing Bittensor projects to become customers of one another, creating a more connected internal economy. Gamma remains under development, with its launch timeline yet to be confirmed.

Targon Shares Revenue Dashboard and Upcoming Products

Alongside the protocol discussions, Targon (SN4) shared updates on its computing infrastructure business, including its public revenue dashboard, which tracks revenue, miner activity, and payouts.

The team also announced plans to expand into CPU services, including databases, web hosting, and managed Kubernetes, alongside a subscription package combining GPU and CPU resources.

Targon also confirmed that its new manufacturing facility, Targon Towers, is operational, with plans to produce computing units for individual customers and data centers using upcoming Intel hardware.

On token buybacks, the team explained that early revenue has primarily funded infrastructure expansion, with larger and more consistent buybacks expected as the business grows.

What Comes Next?

eTAO is available on testnet, with mainnet activation expected through a network upgrade, while Gamma remains under development.

Together, these upgrades could give subnet owners greater control over their rewards and allow subnets to purchase services from one another, creating a more connected economy within Bittensor.

With Targon expanding its infrastructure, the discussions highlighted Bittensor’s growing focus on real businesses and economic activity.

➛ Read the official docs on eTAO here.