The Subnet Economy: Bittensor’s Blueprint for Scalable AI

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Decentralized Artificial Intelligence (DeAI) projects are known to cause a crowd at events this year, and Proof of Talk Paris 2025 was no exception. Bittensor (TAO), an open-source, decentralized, and permissionless machine learning network that transforms machine intelligence into a tradable commodity, was the star of the conference.

From a Bittensor-focused track to the protocol’s co-founder, Jacob Steeves, appearing in a keynote at the mainstage on the conference’s opening day, and a number of subnet projects appearing in fireside chats and panels to discuss the future of the protocol and subnet economy, it seems like the conference had it all.

If Ethereum (ETH) was considered to be the catalyst for decentralized finance (DeFi), Bittensor may prove to be just as foundational for DeAI.

Key Takeaways

  • Bittensor is setting the stage for a scalable, decentralized AI infrastructure.
  • Its open-source and permissionless model lets developers, miners, and researchers build AI applications collaboratively, while also earning incentives.
  • The February 2025 dTAO upgrade marked a critical turning point for Bittensor by decentralizing governance and empowering the community to drive future development.
  • Bittensor’s subnets enable projects to tap into a global GPU pool and access a vibrant community of contributors without having to build AI infrastructure from scratch.
  • Bittensor’s commitment to being fully open-source and aligned through token-based incentives has proven to be a powerful innovation engine.
  • The real-world utility of individual subnets is set to become a key driver of value in the Bittensor ecosystem.

What Is the Subnet Economy?

To understand Bittensor’s potential, it might be helpful to draw a parallel to another foundational Web3 blockchain that turned the industry upside down when it was first introduced in 2013 – Ethereum.

When Ethereum first emerged, it was not just another cryptocurrency, but a highly programmable blockchain that enabled developers to build decentralized applications (dApps) and smart contracts.

The shift from Bitcoin’s (BTC) singular purpose of digital currency towards a platform for decentralized computing was revolutionary, giving rise to entirely new industries like DeFi and non-fungible tokens (NFTs).

Bittensor, in a similar way, is not just another AI project. In essence, the protocol is providing a fundamental, open-source, and incentive-aligned infrastructure upon which a number of AI applications can be built, scaled, and monetized.

Even though Bittensor has been around since 2021, the true potential of its subnet economy went unnoticed until the dynamic TAO (dTAO) upgrade, which took effect on February 13, 2025.

The dTAO update was a complete 360 change from the protocol’s previous governance model that replaced centralized decision-making power with a governance scheme and started a wave of community-driven development.

At the core of Bittensor are its subnets – independent, modular networks, each optimized to perform specific AI-related tasks. These subnets form the backbone of the protocol’s decentralized intelligence economy, where developers, miners (data providers), and validators collaborate to develop, train, and test decentralized AI models, while earning TAO crypto tokens.
Flowchart illustrating a blockchain subnet structure, detailing miners, validators, an incentive mechanism, and rewards distribution
Anatomy of the Bittensor subnet, key components. Source: Bittensor documentation

As of June 2025, the Bittensor subnet count surpassed 120 active subnets – a key milestone reflecting rapid adoption and renewed momentum.

The project’s success is attributed to its focus on being truly open source and community-driven.

Ben James, the co-founder of 404-GEN, subnet 17 on Bittensor, told Techopedia:

“The technical capabilities and talent of the miners are unparalleled and at a scale that enables the collective intelligence of the network to be a significant competitive advantage in this space.”

James added that the codebase for his subnet has benefited from contributions from AI researchers “from most major tech companies.”

He added that this setup allows them to build “standing on the shoulders of giants” and essentially learn from some of the best players in the AI development field.

Ken Jon Miyachi, the co-founder and CEO of BitMind, subnet 34, agreed with James’s consensus, adding:

“The power of open-source and cryptographic incentives drives rapid innovation by aligning a global network of contributors to build and improve the ecosystem collaboratively. Consistent competition drives innovation and improvement, and is a great fit for the problem of detection.”

Why Are DeAI Projects Launching as Subnets?

A primary draw for emerging DeAI projects to Bittensor’s ecosystem is the immediate and unparalleled access to a shared, global infrastructure. Rather than having to build a project from the ground up, subnets can tap into a vast, permissionless GPU pool.

The CEO and co-founder of Score, subnet 44 on Bittensor, Maxime Sebti, told Techopedia that their main reason for choosing Bittensor was the protocol’s permissionless global GPU pool, which gave them access to “the best minds in data science, freeing [the project] from heavy infrastructure spend.”

BitMind’s Miyachi explained that Bittensor had provided them with all the resources they lacked to build their subnet.

He told Techopedia:

“We had a really good idea, but lacked resources. Bittensor’s network enabled us to define the problem and leverage its compute and community of AI developers to make it happen.”

Additionally, launching as a Bittensor subnet also provides projects with crucial built-in security as well as decentralized credibility.

For projects dealing with sensitive or critical applications, such as deepfake detection, as in BitMind’s case, such decentralized credibility could be paramount.

The Future of Subnet Economies

One of the most compelling ideas driving the Bittensor ecosystem further is the seamless integration and interoperability between subnets.

This means that instead of isolating AI models, networks will operate in unison, each contributing its unique features to solve multifaceted problems. Score’s Sebti highlighted that this will be the “real aha moment.”

404-GEN’s James envisioned a similar future, highlighting that “the ecosystem will become more interconnected with subnets leveraging each other’s capabilities to build new applications.”

As the ecosystem matures, the focus will increasingly shift from raw speculation to tangible, real-world utility.

The long-term value of individual subnets, and by extension the overall Bittensor price, will be directly tied to their ability to generate revenue from actual usage, according to Score’s Sebti.

BitMind’s Miyachi added that subnet tokens will have the potential to “become economic flywheels in a booming decentralized AI market” as demand for specialized AI services continues to grow.

Bittensor TAO Crypto Analysis

So far this year, the TAO crypto price has lost some of its momentum, following a good run in March and December 2024 when the token rose to levels surpassing $700.

Line graph showing fluctuating data from July 2024 to April 2025, with peaks in green and dips in red
Bittensor (TAO) 1-year price performance chart. Source: CoinMarketCap

Despite the dip in the Bittensor price, the token is staging a strong recovery following March and April 2025 lows that forced the price to fall as low as $183 as of April 7, 2025.

Since then, the TAO token has managed to recover around 40% of its losses, standing at about $311 as of June 23, 2025.

The Bottom Line

Bittensor is not only restructuring how decentralized artificial intelligence is developed, but also deployed and monetized. Insights from industry professionals, who are deeply involved in the ecosystem, suggest a future where the subnet economy evolves into a truly interconnected network, driving substantial real-world utility and, consequently, value for the underlying TAO token.

BitMind’s Miyachi expressed that “Bittensor attracts the world’s brightest minds,” further highlighting the protocol’s potential.

Bittensor’s clever integration of open-source collaboration, decentralized incentives, and scalable AI infrastructure could help position the protocol as a foundational layer for the next marathon of AI innovation. If current momentum holds, the subnet economy could become the new paradigm for AI.

FAQs

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Iliana Mavrou
Crypto Journalist
Iliana Mavrou
Crypto Journalist

Iliana is a experienced crypto/technology journalist covering the blockchain, regulatory, DeFi, and Web3 sectors. Prior to joining Techopedia, she contributed to several online publications including Capital.com, Cryptonews, and Business2Community, among others. In addition to her journalism work, she also has experience in technology and crypto PR. Iliana graduated with a BA in Journalism from City University of London in 2021. She is currently pursuing a Masters in Communications.

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