**[Bittensor Proposal to Restructure Reward Mechanism: Validators May Transition to "Fund Managers"]** Odaily Planet Daily News – A new governance proposal for the decentralized AI network Bittensor, titled "Root Reborn," is drawing attention. Submitted by developer "unconst," the proposal is currently in the code review phase and has not yet been implemented on the mainnet. According to reports, the proposal aims to restructure the TAO staking reward distribution mechanism, transforming validators from passive reward distribution nodes into capital allocators akin to "fund managers." Under the current mechanism, the system sells rewards owed to root-level stakers and automatically converts subnet tokens into TAO to distribute earnings. This process is believed to exert continuous selling pressure on the prices of subnet tokens. The "Root Reborn" proposal suggests that validators could independently choose which subnets to support and reinvest the rewards that would otherwise be sold back into these subnet assets, forming a compounding asset portfolio. Stakers would still receive rewards and could exit at any time in TAO. The proposal is designed to convert sustained selling pressure into structural buying demand while enabling validators to take on a more active role in capital allocation, thereby strengthening high-quality subnets and weakening lower-quality projects. However, the proposal is still under review on GitHub. Early automated reviews have identified risks such as bottlenecks in large-scale data processing and potential impacts on staker settlements if subnets are shut down. Developers have stated that these issues have been addressed and will continue to optimize the proposal before mainnet deployment. According to market data, TAO has fallen approximately 28% over the past 12 months, while Bitcoin has dropped about 38% during the same period. The current annualized staking yield is approximately 17%. (CoinDesk)