In a move that underscores the growing emphasis on privacy within decentralized AI networks, Taonado Cash has officially launched its first privacy pool for the $TAO token on Bittensor’s EVM.
The non-custodial mixer, which draws inspiration from the controversial Tornado Cash protocol, allows users to deposit and withdraw funds anonymously, potentially marking a significant milestone for privacy-focused tools in the Bittensor ecosystem.
The announcement came via a thread on X (formerly Twitter), highlighting the tool’s ability to enable $TAO deposits in 1 TAO increments, followed by withdrawals to entirely unlinked wallets.
“This marks an important milestone for Bittensor and Privacy,” the post stated, emphasizing the protocol’s use of incentivized “background noise” generated by miners to further obscure transaction links. This feature aims to encourage innovative mixing strategies, setting it apart from traditional privacy tools.
Taonado Cash reported a successful bootstrapping phase, consistently surpassing its initial 1,000 $TAO deposit goal—sometimes by over three times—and noting a surge in liquidity within Bittensor’s EVM environment.
When the project began, the wrapped TAO (WTAO) contract held just 8 $TAO, but the launch has coincided with rising EVM usage on the network.
Looking ahead, the team plans updates next week, including a new 5,000 $TAO deposit goal, instant token buybacks from protocol fees, a Telegram analytics bot, and miner-operated relayers to enhance efficiency.
This launch has garnered positive reactions within the Bittensor community, with users praising it as a “genius” development and a boost for decentralized privacy solutions.
However, privacy mixers like this one evoke memories of Tornado Cash, which faced U.S. Treasury sanctions in 2022 for alleged money laundering facilitation; though Taonado Cash positions itself as an open-source, community-driven alternative focused on Bittensor’s unique incentives.
As Bittensor continues to expand its decentralized AI framework, tools like Taonado Cash could play a key role in attracting users who prioritize anonymity amid increasing regulatory scrutiny on crypto transactions.
About Taonado Cash and Its Customers
Taonado Cash is a zero-knowledge (ZK)-based token mixer specifically designed for the Bittensor ecosystem, enabling anonymous $TAO transactions through shielded pools and zk-SNARK proofs to sever on-chain links between senders and receivers.
Built as a non-custodial, open-source protocol with no KYC requirements or reliance on centralized exchanges, it aligns with Bittensor’s incentivized network by rewarding miners for generating obfuscating “noise” and participating in the mixing process.
The project operates on Bittensor’s subnet 113 (SN113) and emphasizes open participation, making it accessible to anyone in the network.
Its primary customers are participants in the Bittensor ecosystem, including miners, stakers, developers, and everyday $TAO holders who seek enhanced privacy for their transactions.
This includes those involved in decentralized AI activities, such as contributing to subnets or trading TAO or alpha tokens, who may want to avoid traceability in a public blockchain environment.
Community sentiment on X suggests appeal among early adopters and “OG” Bittensor enthusiasts, with mentions in subnet rankings highlighting it as a “cool idea” for privacy innovation.
How to Use Taonado Cash
Using Taonado Cash is straightforward and mirrors the mechanics of similar privacy protocols like Tornado Cash, with a focus on Bittensor’s $TAO.
Users start by visiting the official site and connecting a compatible wallet, such as MetaMask, to Bittensor’s EVM subnet.
They can then select a shielded pool and deposit $TAO in predefined amounts (0.1, 1, 10, 100, or 1,000 TAO) to generate a private note or proof.
After a waiting period to enhance anonymity—during which miners add “background noise” via incentivized mixing—users can withdraw the funds to a new, unlinked address using the generated proof.
The process is permissionless and non-custodial, ensuring users retain control throughout. For advanced users, a command-line interface (taonado-cli) is available for scripting deposits and withdrawals.
The team recommends joining their Telegram group for updates and support during the process.
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