strategically, SN8 is a unique position for high revenue and high margins and I'll break it down in this post. 1. Traders pay to compete. They pay us, or other entities to register onto the network. The entities all have to pay the network at the end of the day in alpha. We are not the only ones pushing forward revenue in this way onto the network. Vanta Trading in particular is showing it's current buybacks, those are the ones you'll be seeing via the wallet and we're growing exponentially. 2. No significant mining costs. Most traders don't have significant costs for their trading infra, so there's no major underlying cost to sell their alpha to pay off. Running predictive models is rather cheap once trained and can be run on CPUs. Most trading infra is also not a heavy cost. As buy pressure increases they're more incentivized to hold rather than sell. 3. Replace their trading infra. With Vanta Labs we'll be providing a superior experience replacing whatever infra they do have (TradingView, 3Commas, etc.) with more robust agentic infra that ties directly into SN8. They'll be using swarms with continuous improvement loops to build better strategies. This means they generate better alpha for the network + the network receives the revenue of the infra they do run (what their costs would be) to generate strategies. This further increases margins. 4. Better alpha means better live trading. The better the strategies traders produce using Vanta Labs the more revenue we can produce copy trading. This can continue to grow via hedge fund vehicles over time. We're already planning on $2M+ in AUM in Q4 that will only continue to grow. Speculatively, we may not be the only ones interested in this data leading to competition via validators for access which is something we're already planning for to drive further demand. Providing the infra for creating better strategies, the place to get funded, and the revenue from copy trading only continues to enhance margins over time. Bullish Vanta, very uniquely positioned.

what the actual fuck is going on with openai today in the space of a few hours we're getting multiple different pieces of the agent story at once: > openai says it has already notified DOZENS of third parties, including governments, about agent-related incidents > reuters reports roughly two dozen undesirable agent incidents had already been identified by mid-september and will take months to review. > us government systems probed > 53 user-provided images were uploaded to third-party image hosts. > new hugging face data shows agents compiling and ranking credentials under “LOOT”. > agents tried contacting other AI models while carrying out the hugging face attack. > separate reporting shows agents had already been probing government/university/public-data sites BEFORE hugging face. > australia confirmed one actually got into non-public government files. and somehow we're STILL finding out more. this has gone from one crazy hugging face incident to an entire fucking category of incidents.

We'll be starting buybacks to our new wallet today. Buybacks will occur every 6 hours. We'll continue increasing deposits next week. All our revenue will go back to the network, be used to purchase funding for our traders and be burnt. Imgs for proof of rev 😄 taostats.io/account/5CXSLbyK… $TAO

JUST IN: BlackRock declares AI agents could soon use stablecoins to buy computing power & data without waiting for humans to complete the transaction.

Ok, I just put together a proper effort post here, so hopefully you read it, but the TL;DR is that TAO hits all the notes you mentioned above. You want a coin that's essential to an AI business, where that business generates real-world value and that value drives back to the coin itself. That's Bittensor. I am going to assume you don't know much about Bittensor beyond the "AI Bitcoin" moniker and start with a brief origin story, since I think it's important and helps illuminate where "AI Bitcoin" came from. The interesting thing about Bitcoin for the Bittensor story is that it figured out how to use a token to bootstrap a decentralized compute network, owned by nobody and accessible to everyone, that to this day is the largest computing network on Earth. Bittensor's founders are AI researchers. They knew how important compute was going to be for building AI, and they set out to build the same thing for intelligence: a decentralized intelligence network, owned by nobody and accessible to everyone. Just as Bitcoin could coordinate a disparate group of people to fight centralized control of money, perhaps a new primitive, Bittensor, could be designed to fight the coming centralized control of intelligence. So they abstracted the Bitcoin incentive system (i.e., spend energy securing the network by solving SHA-256 hashes, get paid in BTC) so it could be applied to a whole new set of problems, all aimed at one goal: mining for intelligence. Mining SHA-256 today on Bitcoin is incredibly difficult, but as a system it's simple and objective. Mining for intelligence is orders of magnitude more complex. It's subjective, so it has to be scored on a gradient (study: Yuma Consensus), and there are multiple components that all need to be mined (compute, data, algorithms, etc.). That's where subnets come in. Each one tackles a piece of the problem. (1) Outside revenue + value to the tokens: It took years and a lot of iteration, but Bittensor is now doing exactly what it set out to do. It's mining intelligence. Compute/inference: ~5 subnets are coordinating GPUs around the world to serve raw compute and inference into the open market. Customers range from retail to enterprise, with the crypto abstracted away entirely. Estimates vary, but I put this group at ~$40-50MM aggregate ARR and scaling fast (for context, think ~200% QoQ and ~50% MoM growth). Training: two subnets are doing SOTA decentralized pre-training right now (SN3 and SN9). SN9 just wrapped up a 100B-parameter run with the highest MFU reported for a distributed pipeline-parallel run. SN3's current run is a 110B-parameter model, the largest decentralized pre-train ever attempted. These teams are past proof of concept and working on scale. And SN120 Affine is post-training Chinese OSS models at SOTA levels. Applied AI: a whole set of subnets incentivize miners to build verticalized models that power real products. Score for computer vision. RedTeam and Bitsec for cybersecurity. Minos for genomics. Yanez for identity and fraud. Trishool for alignment. Vidaio for video compression. I'm missing plenty more. These are real products being used in the wild by enterprises. I'd put this category at $10-20MM ARR, also scaling quickly. For context, 12 months ago I'd have said ARR across the entire network was under $5MM. The TAMs here are massive, and the blue-chip subnets are exiting the pre-revenue stage and entering the scaling-revenue stage right now. Critically, these teams are taking that revenue and buying/burning their tokens. Not because they're altruistic. Because the network makes it the only rational move. Two reasons for this: (1) A subnet pays its miners in its own token, a fixed number of tokens per block. So the only way to grow the supply side (more GPUs, better models, more output) is for the token to go up. If you're a compute subnet and want more capacity, you take your revenue, cover miner COGS plus some margin, and buy your token. Buy pressure on your token becomes a derivative of your compute bill. The token is the production budget. (2) And the chain runs the same game one level up. Subnets compete against one another in a fight for daily $TAO emissions, and the scoreboard is the price of each subnet's alpha token (a clever way to let the broader market instruct the protocol on how to allocate its resources). The winners get a bigger share, and for mature subnets that TAO goes straight into buying their own token off the pool. Fall too far in the ranks and you not only lose out on emissions, you risk being deregistered. So you might astutely point out that revenues < emissions today. That is true, but the trend is our friend. Bittensor is essentially running the Uber playbook, which I would argue a cryptocurrency is tailor-made to do. Use the token, rather than VC funding, to bootstrap supply before the demand exists. Once supply is there, demand scales and the flywheel kicks in: demand up → revenue up → buy+burns → alpha price up → miner rewards up → more/better supply → repeat. The early alpha buyers were the pre-revenue seed/Series A investors. Now we're entering the revenue/scaling era. Although revenue isn't yet covering emissions, as discussed above, it is growing. Meanwhile, the supply side is in its first halving cycle. TAO had its first halving last December, alpha halvings are coming in 2027/28, and the subsidy shrinks on schedule as revenue takes over. I am not speculating here either - a couple of subnets already bring in more from customers than they pay out to miners. Important to mention: to buy and burn its alpha token, a team has to buy TAO first and stake it into the pool that pairs TAO against its token. Every alpha burned leaves TAO behind in the pool. ~2M TAO already sits in those pools, and every subnet token can only trade against TAO. So subnet revenue = TAO buy pressure, mechanically. Speculative investing in subnets = TAO buy pressure. Subnet/miner/validator registrations = TAO buy pressure. Taken to its logical end... TAO is literally an index of all 128 subnets, or in other words, an index of 128 AI startups building on crypto rails. (2) It's cypherpunk: TAO also represents the right ethos for crypto x AI. It leverages a novel crypto primitive to bootstrap networks that coalesce edge compute and edge talent from around the world, coordinate them to produce the real inputs to intelligence (compute, data, algos, etc.), and serve them to anyone, anywhere. A network that serves open, permissionless, decentralized, uncensored intelligence. A true alternative to centralized labs and governments. And because it harnesses the world's edge compute and talent, it can scale in ways the fiat companies just can't. (3) You're still early: The top 3 compute subnets are ~$100MM market caps. The next two are $30-60MM. Promising subnets in other categories are sitting at $10-20MM. There are 128 subnets today and there'll be 256+ down the road. Maybe many more in the future. Bad teams get deregistered and new ones take their place. As the ecosystem grows, so do miner and owner rewards, which pulls in more teams and better talent. There will be fantastic teams launching subnets a year from now that you can buy at $5-10MM or less. CT isn't woke to this. 99% have not bridged over to the native Bittensor chain to participate in this ecosystem. Cross-chain bridges are only just going live. In my mind, this screams opportunity. And that's before you get to TAO itself, the L1/index/launchpad under all of it, sitting at ~$3B. That's comically low. Its 1:1 comp is ETH at ~$327B. 100x with size is viable here. Will follow up with some longer-form sources to check out.

Jensen Huang: America Needs Open Source to Win AI... Because Open Source Lets Every American Win @JensenHuang: “In the last six months, $400B of venture funding went into AI-native companies. 80% of them use open models. If not for open models, how could they build their dream? Because their dream could be different. Obviously, it'll be different than the frontier labs' dreams. America has so many different ways to innovate. That's one of our core strengths. Great ideas just coming out of the fountain, and so open models enables that.” @friedberg: “Does it matter if the open models come from China or the US?” Jensen: “Probably the vast majority of the world's contribution to open source today is coming from China. They just have a lot more engineers. They contribute to open source today. We download Linux, we download Kubernetes, we download all the software. A lot of it has been touched by (the) Chinese, and once you download it, it's yours. We fork it, we improve it, we make it ours. And so when you download one of these Chinese models, it just happens to be made by some really great researchers in China, but it's now yours. If we want to win the AI race, it's not about a few technology companies winning the AI race. It's about every company in America, every industry, every researcher, every teacher, every student, every startup, everybody wins. Some of them will use closed models. A lot of them will use open models.” $NVDA ------------------------------ Thanks to our partners for making this possible! Google for Startups connects founders with the right people, products, and best practices to help startups build faster and go further. startup.google.com/ Explore ideas, industries, and technologies worth understanding with Chamath every week on Learn with Me: research.socialcapital.com/a…

Incentivized conviction goes live next week. Our IM code will reroute a percentage of emissions to boost dividends for locked alpha. The community wants something done about constant rotation. Once again 88 is taking the lead and driving innovation.

biggest revenue week for @VantaTrading and we’re halfway through the week. Will all go to token buybacks.