⚙️ Bittensor argues tokens and equity can coexist when tokens power real production value ⚙️
The article argues that Bittensor offers a model where equity funds company growth while subnet tokens capture the value of the compute, data, and specialized work required to deliver products.
🔑 Key points
🔹 Equity and tokens represent different claims: Equity captures company ownership and cash-flow rights, while subnet tokens can capture the value of the production network.
🔹 Most token-equity models fail holders: Token holders often receive no ownership, no claim on company revenue, and limited protection when equity investors take priority.
🔹 Bittensor creates mechanical token demand: Miners are paid in subnet tokens to produce useful work, linking token value to the network’s incentive budget.
🔹 Higher token value increases production capacity: A more valuable token can attract and retain more miners, compute, data, and specialized contributors.
🔹 Finite emissions create pressure: As demand grows, a subnet may need a higher token value to compensate contributors over time.
🔹 Targon demonstrates the model: Manifold Labs can raise venture capital while Targon (SN4) continues using its token to source compute for the company’s rental business.
🔹 ORO demonstrates non-substitutability: ORO (SN15) depends on diverse agent-generated traces that would be difficult to recreate through conventional hiring alone.
🔹 Two paths create durable value: A subnet can become valuable through a cost advantage or by producing a specialized service that customers cannot easily replace.
🔎 Why it matters
🔹 The model challenges the idea that equity and tokens must always compete for value.
🔹 Equity can fund sales, development, and customer acquisition while the subnet token coordinates the underlying production network.
🔹 The thesis only works when the company genuinely depends on the subnet. If the business can easily replace the network, token value may remain disconnected from company growth.
🔹 Token holders still do not own the company, even if the company’s success increases demand for the subnet.
🎯 Bottom line: Bittensor may show that equity and tokens can coexist when they represent different layers of value. Equity funds the company, while the token powers the decentralized workforce and production capacity. But this is not automatic—the token must be essential, demand must be real, and the subnet must produce work customers cannot easily replace.
https://taodaily.io/unsupervised-capital-tokens-and-equity-can-coexist-and-bittensor-proves-it/