As the year winds down and the holidays approach, the timing could not be better for reflection.
In a festive end-of-year episode (which happens to be the second) of the Carrot and the Stick, Garrett Oetken (the Carrot) and Keith Singery (the Stick) came together to unpack some of the most important developments shaping Bittensor today (watch below). From protecting traders against extractive behavior to preparing the protocol for long-term scale, the conversation offered both clarity and conviction.
With Christmas around the corner and the ecosystem standing at an inflection point, the discussion moved naturally from what has changed to what must come next.
Setting the Tone: A Holiday Check In With the Carrot and the Stick
Garrett opened the episode with warmth and humor, welcoming listeners just ahead of the Christmas break. Keith quickly followed with a lighthearted reminder that even holiday gifting could include a little exposure to $TAO, framing the moment with optimism despite market conditions.
The tone was relaxed, but the agenda was serious. Two major themes anchored the discussion:
a. Why Anti-MEV matters for the health of the ecosystem, and
b. What Bittensor needs to prioritize as it moves into 2026.
From there, the conversation went deep without becoming inaccessible.
Understanding MEV and Why it Matters
Before discussing solutions, Garrett took time to clearly explain the problem. Maximal Extractable Value (MEV) refers to the practice of exploiting transaction ordering on a blockchain for profit.
In simple terms, bad actors can see large transactions, publicly in the mempool (this is like a waiting area for transactions), before they are finalized and insert their own trades around them to profit at someone else’s expense.
In the context of Bittensor ($TAO) and Dynamic TAO (dTAO), this behavior shows up as:
a. Front running large buys or sells,
b. Sandwiching trades within a single block, and
c. Extracting value without contributing to the ecosystem.
Garrett emphasized that while MEV may be profitable for bots and opportunistic traders, it undermines the core purpose of the market. Instead of reflecting conviction or long-term belief in subnets, trades become tools for short-term extraction.
Keith reinforced this point with real-world examples, noting how automated bots previously swarmed new subnet launches and major announcements, draining value quietly and consistently.
The Anti-MEV Solution and Why it is a Big Deal
The conversation then shifted to the solution. Anti-MEV on Bittensor works by temporarily hiding transaction details through encryption. Instead of broadcasting the contents of a trade before execution, transactions are submitted in an encrypted form and only revealed when it is too late to exploit them.
In practice, this achieves several important outcomes:
a. Prevents bots from identifying large trades in advance,
b. Eliminates sandwich attacks during execution, and
c. Protects both large and small participants equally.
Garrett explained that this system is opt-in by design, allowing existing tools to continue functioning without disruption. At the same time, major wallets such as the TAO app already implement Anti-MEV protection by default, making it seamless for everyday users.
Keith added an important caution. Even small trades can be targeted, especially as larger players adopt protection. Anti-MEV is not just for whales, it is for anyone who wants fair execution.
Together, they highlighted this upgrade as one of the smoothest and most impactful improvements introduced post-dTAO, giving special credit to the Opentensor team and the developers who led the rollout.
Bittensor in 2026: Moving Toward Chain Decentralization
With Anti-MEV setting the stage for trust and fairness, Garrett turned the conversation toward the future noting that one of his biggest priorities for 2026 is ‘chain decentralization’.
Today, Bittensor operates with a limited set of chain validators managed by the Opentensor Foundation. This structure allowed the protocol to move quickly during its formative years, but long-term resilience requires shared responsibility.
The plan moving forward includes:
a. Expanding the number of chain validators,
b. Introducing a nominated proof-of-stake model, and
c. Distributing block production across trusted ecosystem participants.
Garrett emphasized that for most users, this transition should feel invisible in day-to-day use. The real impact lies beneath the surface, where decentralization strengthens robustness, reduces single points of failure, and increases confidence for external observers and institutions.
Keith pressed on the practical implications, particularly around validator incentives and trust. Garrett clarified that early participation will remain permissioned, ensuring only reputable actors help secure the chain during the transition.
The Future of Governance in Bittensor
Chain decentralization naturally leads to governance. Garrett described an evolving governance model that expands community involvement without sacrificing decisiveness. The proposal introduces a two-house structure, representing subnet owners and validators, alongside a rotating triumvirate.
Key features of the proposed system include:
a. A review period for approved upgrades,
b. Community voting that can accelerate or delay changes, and
c. Clear mechanisms to reject proposals entirely.
Rather than slowing development, the goal is to increase trust. When changes are fast tracked, the community knows why. When changes are delayed, teams gain time to prepare.
Keith welcomed this shift, noting that it brings important decisions into the open and reinforces accountability across the ecosystem. Governance, in this vision, becomes a reflection of Bittensor’s culture rather than a replacement for it.
Bittensor Aspirations for 2026
When asked about his own hopes for the year ahead, Keith highlighted three major themes.
First and foremost, continued subnet deregistrations which would ultimately clear out underperforming subnets keeps the ecosystem competitive and focused.
Second, real productization. On this, Keith pointed to recent wins (such as GEN 404 (Subnet 17)’s success) as proof that Bittensor outputs are beginning to compete beyond the crypto bubble.
Third and finally, growing market share. This growth is not just about relevance, but measurable traction against centralized incumbents.
Garrett echoed this optimism, emphasizing that Bittensor’s strength lies in its rate of improvement. As decentralized models approach parity with closed systems, the advantages of openness, cost, and neutrality become impossible to ignore.
Community and Real World Connection
The conversation closed on a human note. Keith highlighted the importance of in-person events, specifically the upcoming Exploit Summit in San Francisco. For projects built on trust and long-term collaboration, face-to-face interaction remains irreplaceable.
For prospective participants, both hosts encouraged them to:
a. Meet their validators,
b. Talk to subnet teams directly, and
c. Engage beyond charts and dashboards.
Bittensor is not just code but a living network of people building together.
Closing Thoughts
As Garrett summarized, 2025 redefined Bittensor. dTAO reshaped incentives, expanded subnets, and unlocked experimentation.
However, 2026 is about hardening. With Anti-MEV protecting fairness, decentralization strengthening trust, governance amplifying community voice, and real products reaching the world, Bittensor is entering its next phase with confidence.
Still, ‘the carrot’ sets the vision and ‘the stick’ keeps it honest.
And together, they paint a picture of an ecosystem ready to scale without losing its soul.
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