Learn Bittensor

🌀 Understanding Subnet Pools in Dynamic TAO Each subnet will have its own pool managing TAO and the subnet's token, creating a dynamic market-driven ecosystem, but how will those pools work? When you stake TAO to a subnet, you receive the subnet's tokens in return. The exchange rate is determined by the ratio between TAO and subnet tokens in the pool. The key mechanics are: - Pools start at a 1:64 ratio (TAO:subnet token) - More TAO staked = higher TAO emissions - Staking into subnet will increase the price - Unstaking from a subnet decreases the price - Low liquidity in the pools causes slippage! Understanding slippage is crucial: - Relatively large stakes/unstakes can significantly impact the price. The bigger the pool, the lower the slippage Root staking (subnet 0) works differently: - No token conversion, no slippage - your TAO stays TAO Learn more below, and try our slippage calculator to experiment with different pool scenarios: