By: @CryptoZPunisher

“Retail prop firms win when traders lose. That’s the game.”

-Arrash

Over the last months, Subnet 8 (Taoshi) has become a focal point for validators, investors, and especially quantitative traders. What began as a simple Bitcoin price prediction subnet has evolved into a full-scale decentralized quantitative trading network, with a bold mission:

👉 Disrupt a massive industry worth $10–20B per year: proprietary trading (prop trading).

Unlike traditional prop firms, opaque, restrictive, and financially misaligned—PTN (Proprietary Trading Network) introduces a model that is:

✔ transparent ✔ decentralized ✔ performance-aligned ✔ fully open ✔ and built for global scale

This isn’t just another subnet. 👉 SN8 may be one of Bittensor’s first large-scale, revenue-generating engines.

1. Origins: From Bitcoin Prediction to a Global Trading Network

Taoshi originally launched a subnet dedicated to Bitcoin time-series prediction.

Miners submitted ML models → validators scored accuracy → the network produced a blended forecasting signal.

But the team quickly realized:

✔ 1) Building ML models for every time series is a monumental task

and the revenue horizon was too distant.

✔ 2) The trading decisions generated by these models were far more valuable

than the forecasts themselves.

This realization led directly to:

PTN — The Proprietary Trading Network

A simple but powerful idea:

➡️ Every miner becomes a trader. Every UID becomes a decentralized mini-prop-firm.

2. The Problem: The Prop Firm Industry is Broken

The retail prop firm industry, despite being huge, is structurally flawed:

❌ Prop firms profit when traders fail

❌ Their model depends on challenge fees, not performance

❌ Rules are punitive, arbitrary, and often manipulated

❌ Skilled traders are banned or restricted

❌ Everything is opaque and centralized

The game is simple: 👉 Get you to fail quickly so you’ll pay another challenge fee.

Taoshi wants to flip the script by applying the ethos of Bittensor:

✔ open-source ✔ transparent ✔ permissionless ✔ decentralized ✔ aligned with performance

In this breakdown, Taoshi’s CEO

@0xArrash

Walks through how PTN’s decentralized model rewrites the rules with a transparent, performance-aligned prop-trading ecosystem designed for global scale. ⬇️

3. How PTN Actually Works

👉 Every miner is a trader

Miners send live trading instructions:

• Long
• Short
• Flat
• leverage
• on specific markets (crypto, FX, commodities, equities)

👉 Validators simulate real portfolios

They act like decentralized, distributed trading engines.

👉 Performance is scored using multiple metrics

Including:

• Sharpe
• Sortino
• Calmar
• Omega
• Max Drawdown
• Stability
• Risk-adjusted returns

👉 A strict challenge period

To be admitted as a “real” miner:

• 60 days of challenge mode
• 30-day evaluation window
• must rank in the top 75th percentile
• only then join the “elite” trading set

The selection process is brutal. Only a small minority make it through.

4. PTN = A Global Harvesting Engine for Quant Strategies

PTN is essentially building a constantly improving dataset of:

✔ trading signals ✔ quantitative models ✔ blended network strategies ✔ multi-asset execution logic

The network aggregates thousands of models into composite, risk-adjusted, ensemble strategies.

The result is a decentralized version of:

👉 a global multi-strategy prop firm, powered by thousands of competing ML traders.

5. Glitch Financial: The Commercial Product Built on SN8

PTN is the engine. But monetization comes from:

Glitch Financial

A complete wealth-management-as-a-service platform that allows:

• Retail users to plug into professional strategies
• Wealth managers to build “plug-and-play hedge funds”
• Institutions to execute on top of PTN outputs
• SN8 miners to be sustainably compensated
• Taoshi to generate real external revenue

Built by a 20-person Taoshi engineering team, Glitch includes:

✔ Multi-exchange execution (Binance, Bybit, dYdX) ✔ Full integration with MetaTrader 5 (a massive technical achievement) ✔ A tiered subscription model ✔ Portfolio tracking and automated execution ✔ European access first, US later (regulatory reasons)

Glitch is one of the first real, revenue-ready commercial products in the Bittensor ecosystem.

6. The Vision: Wealth Management On Bittensor

Arrash has been very explicit:

“We want to build wealth management on Bittensor.”

This means:

• multiple new subnets (already planned)
• EVM-based miner-to-contract relationships
• turning one mining UID into 1,000 traders via smart contracts
• decentralized collateral systems
• “capacitor” mechanisms where miners only receive emissions if hitting thresholds
• tokenomics designed for the DET world

Taoshi is positioning itself not only as a subnet, but as:

👉 a decentralized financial intelligence network 👉 a global quant trading layer 👉 a full asset-management stack 👉 a commercial engine for real-world revenue

7. What DET Will Change for SN8

As Arrash said:

“DET isn’t good for miners or subnet owners. It’s good for Bittensor.”

SN8 is one of the best-positioned subnets for DET because:

✔ its output is monetizable ✔ it already has a revenue model ✔ token value will correlate to the network’s real performance ✔ the subnet is competitive by nature ✔ real cashflows can flow back into the token economy

SN8 is not theoretical. It’s not a concept.

👉 It’s already operating at scale, with real-world demand.

8. Conclusion — Is SN8 the First True “Revenue Subnet” of Bittensor?

SN8 checks every box:

✔ Massive industry to disrupt ✔ Clear superiority vs trad prop firms ✔ Doxxed, experienced, 20-person team ✔ A commercial SaaS product (Glitch) ✔ Strict miner quality filtering ✔ Live real-world use cases ✔ A long-term roadmap aligned with DET ✔ A ready-made path to external revenue

Taoshi is no longer an experiment. 👉 It’s a functioning decentralized quant firm, plugged into a global blockchain.

In a DET world, this places SN8 among the most strategically important subnets in the ecosystem.

USEFUL LINKS

Official Websites

• Taoshi website — taoshi.io
• Glitch Financial — glitch.financial
• Documentation — docs.taoshi.io
• Tokenomics — tokenomics.taoshi.io

GitHub

• SN8 Repository — taoshidev/vanta-network

X Accounts

Official accounts :

• Taoshi — @taoshiio
• Vanta Trading — @VantaTrading
• Glitch Financial — @GlitchFinancial

Core Team :

• Arrash (Founder & CEO) — @0xarrash
• Luke (Marketing & Growth) — @Lukes_Trades
• JBone (Engineering) — @0xJBone
• Riley — @Raleigh_CA
• Research Director — @researchqueue

LinkedIn

• Taoshi LinkedIn page — linkedin.com/company/taoshiio/

Taostats

• taostats.io/subnets/8/chart