Your beginner-friendly guide to Bittensor terminology. Explained in plain language.
This glossary covers the essential terms you’ll encounter when learning about Bittensor, TAO, and decentralized AI. Each term is explained simply without jargon, so you can build a solid foundation.
Bittensor
A decentralized network for artificial intelligence that creates an open marketplace where anyone can contribute machine learning models, computational power, or AI services — and get rewarded based on the quality and usefulness of their contributions.
Think of it as a global, peer-to-peer AI ecosystem where intelligence is produced collaboratively, not owned by one company.
TAO
The native cryptocurrency of the Bittensor network. TAO serves as both the reward mechanism (miners and validators earn it) and the fuel for network participation (used for staking, registration, and governance).
*Maximum supply:* 21 million (similar to Bitcoin)
*Symbol:* τ (tau)
*Smallest unit:* RAO (1 TAO = 1 billion RAO)
Subnet
A specialized mini-network within Bittensor that focuses on a specific AI task or service. Each subnet is like its own ecosystem with its own miners, validators, and incentive mechanism.
*Examples:*
– Babelbit: Predictive Translation
– Hippius: Decentralized Cloud Storage
– Red Team: Improving Security Systems
– Its AI: Text Verification (AI written or not)
*Think of it as:* Specialized neighborhoods within a larger city — each focused on different work, but all part of the same economy.
Alpha (α)
A subnet-specific token that represents ownership and participation within that particular subnet. Each subnet has its own alpha currency that can be staked or traded.
*Think of it as local currency for each subnet neighborhood, while TAO is the national currency of the entire Bittensor country.
Miner
A participant who provides AI services, computational work, or data processing to a subnet. Miners compete to produce the best outputs and earn TAO based on their performance.
What they do:
– Run AI models
– Process queries
– Generate outputs (text, images, predictions, etc.)
– Compete for rewards based on quality
*Think of it as workers who produce valuable goods in a marketplace — the better their work, the more they earn.
Validator
Subnet Owner (Creator)
The individual or team that designs a subnet’s purpose, creates its incentive mechanism, and maintains the codebase that defines how miners and validators should behave.
What they do:
– Define the subnet’s task
– Write the incentive mechanism
– Maintain code repositories
– Earn 18% of subnet emissions
Delegator (Nominator)
A TAO holder who stakes their tokens to a validator without running validation infrastructure themselves. Delegators share in the validator’s rewards. They are passive participants who earn a share of their chosen validator’s rewards.
Why delegate:
– Earn passive income
– Support validators you trust
– No technical setup required
Retail TAO holders who want to stake their TAO can be considered delegators.
Staker
Anyone who locks up TAO tokens to participate in network consensus, either by running a validator themselves or by delegating to an existing validator.
Two types of stakers:
1 Active stakers: run validator nodes themselves
2 Passive stakers (delegators): delegate TAO to validators. This is basically retail TAO holders.
Hotkey
A wallet component used for active network operations like mining, validating, and signing transactions. Can be encrypted or unencrypted.
*Security level: lower (used for frequent operations)
*Think of it as your day-to-day spending wallet
Coldkey
A secure wallet component that holds your TAO funds and performs high-risk operations like transfers and staking. Should always be encrypted and kept safe.
*Security level: highest (your savings account)
*Think of it as: your bank vault — rarely accessed, maximum security
UID (Unique Identifier)
A number assigned to each registered neuron (miner or validator) within a subnet. Each subnet has a maximum of 256 UID slots.
*Example: in Subnet 1, you might be UID 42
Neuron
The basic computing node in a Bittensor subnet. Can be either a miner or validator. Each neuron has a UID and is associated with a hotkey-coldkey pair.
Yuma Consensus
The algorithm that determines how TAO emissions are distributed across the network. It aggregates validator rankings of miners and calculates rewards based on consensus.
*Key principle: validators with more stake have more influence, but must agree with other validators to earn rewards (prevents manipulation).
Emissions
The process of generating and distributing new TAO tokens to network participants as rewards.
*Current rate: 0.5 TAO every 12 seconds (3600 TAO per day)
*Distribution split:*
– 41% to miners
– 41% to validators (shared with delegators)
– 18% to subnet owners
*Halving:* Like Bitcoin, TAO emissions halve at regular intervals. First halving occurred December 14, 2025.
Dynamic TAO (dTAO)
A new economic model where each subnet operates as an automated market maker (AMM) with TAO and alpha reserves. Enables price discovery for subnet-specific tokens.
*Key innovation: subnets can create their own economies while remaining integrated with the larger Bittensor network.
*The market can choose which subnets deserve emissions and which don’t.
Staking
Locking up TAO tokens to support a subnet which earns you rewards from emissions.
Registration
The process of securing a UID slot in a subnet by paying a registration fee. Allows you to participate as a miner or validator.
*Cost: variable, based on subnet demand.
Liquidity Pool
The reserve of TAO and alpha tokens in each subnet’s AMM that enables trading between the two currencies.
*Ratio: determines the exchange rate between TAO and subnet alpha
Subtensor
The substrate-based blockchain that powers Bittensor. Records all transactions, balances, and subnet activity.
Opentensor Foundation (OTF)
The nonprofit organization that maintains the core Bittensor protocol, infrastructure, and documentation.
Deregistration
The process of removing a poorly performing subnet from the Bittensor Network. Based on price of the subnet token. This is part of the competitive nature of Bittensor’s Ecosystem.
Immunity Period
A grace period for newly registered subnets during which they cannot be deregistered, allowing time to ramp up performance.
Still Have Questions?
This glossary covers the fundamentals, but Bittensor is constantly evolving.
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