What You Need To Know About The New TAO Staking Update

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Bittensor has rolled out an important update that affects everyone who stakes TAO on the Root network (the main TAO staking pool). This upgrade changes how your staking rewards are paid to your wallet.

If you stake TAO, you need to understand this change so you don’t get surprised by the new default setting.

How Root Rewards Worked Before

When you stake TAO on Root, the network actually rewards you in many different “alpha” tokens from all the subnets.

Until now, the system has been auto‑selling those alpha tokens for you.

That auto‑sell happens in the background, so it looks like Root is simply paying you in TAO.

So in the old setup:

  • The network pays you in alpha tokens from subnets
  • Those alpha tokens are auto-swapped to TAO
  • You only ever see TAO arrive in your wallet
This system was called SWAP.

What Is Changing Now

With the new upgrade, the default behavior flips. Instead of auto‑selling alpha into TAO, the system will keep your rewards as alpha tokens by default.

This new default is called KEEP:

  • You earn alpha tokens from subnets
  • They stay as alpha instead of being converted to TAO
  • They are treated as staked on those subnets, not converted back to TAO on Root
Const about the upgrade

This upgrade is now live (according to the announcement shared by Bittensor developers).

So if you do nothing, you will start receiving alpha rewards directly, not TAO.

The Options You Now Have

You now have a choice between three reward types:

1. KEEP (new default)

  • You receive alpha tokens from each subnet
  • These represent a stake in those subnets
  • No auto‑selling into TAO
  • Good for people who want long-term exposure to subnet growth

2. SWAP

  • Alpha rewards are still collected from subnets
  • But they are auto‑sold into TAO before you see them
  • Your wallet continues to receive TAO only
  • This is simpler if you only care about your TAO balance

3. DELEGATE

  • Your validator decides whether rewards are swapped or kept
  • Users can also choose which subnet to KEEP
  • You can also set a mix of options across subnets for flexibility
  • This is ideal for users who want a custom strategy but prefer not to manage every detail themselves.

If you prefer the old method of payment, you must set your claim type to SWAP. If you do not change anything, your claim type will switch to KEEP when the upgrade goes live.

Why Bittensor Is Making This Change

The network wants to reduce the automatic selling of alpha tokens. When rewards are always swapped to TAO, it creates constant sell pressure on subnets.

By switching the default to KEEP:

  • Subnets receive more support
  • More value stays inside the subnet economies
  • Stakers gain exposure to all subnets instead of automatic selling

It’s a healthier long-term structure for the ecosystem.

How To Change Your Claim Type

Go to the taostats dashboard here: https://dash.taostats.io/stake/claim

Then:

  1. Connect your wallet
  2. Choose SWAP if you want to stay on the old system
  3. Choose KEEP if you prefer receiving alpha tokens
  4. Choose DELEGATE if you want a validator to manage the strategy for you.
TAO.app Settings

That’s it. 

You can also use the Command Line (for technical users):

Type: btcli stake set-claim swap (if you want SWAP)
Type: btcli stake set-claim keep (if you want KEEP)
Or type: btcli stake set-claim delegate (if you want DELEGATE)

Why This Change Matters

For stakers, KEEP gives you broader exposure to many subnets, but adds complexity because you now hold multiple alpha tokens.

SWAP stays simple: you just get TAO, but you do not directly hold the alpha that might grow if certain subnets do very well.

For the network, moving the default to KEEP reduces automatic selling of alpha tokens.
That can support subnet growth, since more value stays inside each subnet instead of being sold into TAO right away.

In short, the network is shifting to a “hold alpha by default” model, and you only keep the old “sell to TAO” flow if you explicitly choose SWAP.

Final Thoughts

This upgrade is one of the most important changes to Bittensor’s reward system. It shifts the network toward growth and stability while giving stakers more control.

Just remember:

If you want TAO → set claim type to SWAP

If you want alpha tokens → leave it on KEEP

If you want someone else to manage strategy for you → use DELEGATE with a validator you trust

Check your current setting and update it so your rewards match your goals, not the default

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