A few weeks ago, I started researching the Bittensor subnets, and honestly, it’s a bit of a rabbit hole. With 128+ active subnets, it’s easy to get lost in the noise of "emissions" and "alpha tokens."
But once you look past the ticker symbols, you start to see where the real utility is being built.
Here’s a breakdown of what I’ve found, comparing three heavy hitters in space. 👇
1⃣ Chutes (SN64) | The Revenue Engine
Chutes focuses on serverless AI inference. High-efficiency, low-cost compute.
They’ve managed to offer prices significantly lower than centralized giants like AWS. They are actually generating daily revenue (reportedly around $22k/day recently). It’s a great example of a "working" subnet that provides immediate value to developers.
2⃣ Targon (SN4) | The Secure Compute Layer
Manifold Labs (the team behind Targon) recently collaborated with Intel on secure, decentralized compute. They are solving the "trust" issue: how do you run sensitive workloads on hardware you don't own?
This is the bridge to enterprise adoption. By using Intel TDX for encrypted environments, they’re making $TAO viable for companies that can’t risk data leaks.
3️⃣ Leoma (SN99) | The Cinematic Video Engine
While the others are building the "pipes" and "electricity," @leoma_ai is delivering a production-ready creative platform. This is where I think the market is currently undervaluing the project.
Most subnets are backend-heavy. Leoma is a decentralized, open-source cinematic AI platform. It transforms text and images into studio-grade videos by leveraging open competition across the network’s best-performing models.
It ensures continuous improvement through a Miner-Validator loop where the highest-performing model wins each request.
While I love the technical milestones of Chutes or Targon, Leoma is what makes those technologies accessible to filmmakers and creatives. It provides direct access to decentralized video intelligence without gatekeepers.
The TAO ecosystem is maturing. In 2024, it was all about the "idea." In 2026, it’s about who has a product people actually use. The infrastructure subnets are the backbone, but I’m keeping a close eye on those subnets that are actually putting that power into a usable tool.
Which subnets have you been monitoring lately? Are you prioritizing the "plumbing" or the "apps"?
NFA - DYOR
I tried using @chutes_ai for my CRM business, my honest experience...
Kept hitting [CHUTES] Status 429: {"detail":"Infrastructure is at maximum capacity, try again later"}
for many days and I couldn't test my AI prospecting feature.
I use chutes for my private discord, for llm summaries, I don't have problems but with the CRM, no idea it barely works
maybe because im requesting while i'm in Vietnam and it surges during that time zone but it was unusable.
i ended up, doing like every customer, after some friction just putting my CC to deepseek API and forgetting everything.
Felt a bit dissapointed, but time is my most valuable ressource and I don't have time to try to understand utilization, "why" it crashes, "what" to do about it.
"why" is it always at 90-100% capacity with a red circled emoji.
Code model fallbacks and take risks the infra can "handle" it.
I asked AI, it said anthropic or deepseek api is more stable and went w it.
I just wanted to test and build FAST.
Am I entitled and asking too much?
I don't think so, it's a fair reaction even tho I'm a bittensor maxi.
I'll go back to chutes when im more experienced maybe.
No hate what so ever, i'm journaling my experience, and I know it'll only get better.
$TAO #sn64
Shak left, Sam left.
Maybe it's time we started asking the tough questions. Why are our biggest builders leaving? What will stop the next biggest builders from leaving?
bittensor:native
@_olaige That's a great write up - very well written @Learncryptohere - thank you for taking the time to dig into the project and for your technical accuracy.
DeFi's been bleeding for years. Liquidity is fragmented, swaps get sandwiched, and routing for borrowing, lending, and bridging is painfully manual.
MEV alone has drained $1.7B+ from Ethereum ethereum:native users since 2020 (and that's before you count the slippage, gas waste, and missed rates from manually checking multiple lending protocols for a single loan).
Minotaur (SN112) is the fix. A universal intent layer where solvers compete to execute any DeFi action (swap, borrow, bridge, yield, you name it) at the best price.
The cherry on top: it's built on Bittensor bittensor:native. The chain that attracts the world's best brains to ship things no one else can.
Excellently written article about @minotaursubnet by @Learncryptohere.
Worths a read for sure ⏬⏬
so i took a little break on the mining push w/ arbos
had some trouble hooking up chutes api to it
so pivoted to hermes
used chutes api and specifically the glm 5.1 model, which has gotten rave reviews
2 days i trained a model on bitmind using its dfresearch repo
had some back and forth with dependency errors
then finally actually submitted my first model on bittensor
feels good man, more to come
Welcome @LouiseBeattie 💫
If it wasn't for Bittensor's fan forums, Bitstarter wouldn't exist. That's where the most dedicated TAO holders meet, and where this idea was born.
Louise is here to bring that community-driven energy to our teams - and to every future launch 🚀
We gave an Arbos agent 2.2K, the MANTIS signals fresh from the API and the goal to trade as aggressively as possible with 25% 3 month risk of ruin accepted, let's see how this goes.
-chutes one of top severless compute options on open router
-ridges has a coding agent beating SWE benchmarks
-targon providing partnering with intel providing private enterprise compute
-subnet 3 had biggest decentralized run of all time
-404 gen has biggest 3D generative model in world
-metanova solving for real world diseases
but yeah, no utility you're right.
all these feats occurred because the miners were incentivized to.
Bittensor is a crypto-ponzi; unsustainable nonsense!
TAO has no utility or PMF; it is all driven by token inflation:
$328M worth of new tokens are printed annually, yet only $15M in annual revenue was generated!
Subsidies from holders pay for subnets; economically bankrupt: 🧵
Token inflation is used to give people the illusion of low cost. As the truth is that creating AI models in a "decentralized" way is far more expensive. While offering no additional utility or benefits
It is all theatre; subnets are not created as competitive products. They are created simply to exist & extract as much value out of TAO investors as possible
Ponzinomics & Extraction:
For example, the Pine Analytics data proved that unsubsidized inference on the Chutes subnet would cost up to 3.5x as much as centralized competitors such as Deepseek or TogetherAI!
What makes it all so much worse is that token holders pay for these subnets through inflation. Yet, none of the revenue actually flows back to the token holders. The subnet owners get to keep 100% of the revenue! On top of 18% of emissions, just because...
That is a borderline scam, extremely profitable for subnet operators, but setting up token investors for extreme loss when the system inevitably collapses
As TAO has a 21M supply limit, which might be appealing to ignorant token investors. But also implies that the network will entirely collapse, as it is fundamentally unsustainable, just like BTC
Inefficient & Expensive:
The problems run even deeper than that, as is the case with most DePin projects that rely on subsidies rather than real-world value accrual:
The reason why decentralized computing is so inefficient is that it requires verification & replication. Within a trustless environment, we cannot simply trust the work done by individual nodes. Instead, the work must be replicated multiple times over, introducing extreme inefficiencies. This is not so bad for simple TX's, but for serious, large computing tasks, this becomes a deal breaker
This is why 41% of the rewards go to "validators" whose sole task is to verify that the work being done is legitimate!
This only adds to the massive inefficiency already introduced by latency within a distributed network. There are several good reasons why AIs are trained in massive data centers with cards equipped with extremely low-latency, high-bandwidth connections. Something TAO is unable to directly compete with in technical & economic terms
Product Theatre:
In some cases, it is worth paying a premium for decentralization; one example of this is decentralized storage
However, this is not the case for the training of AI's, as this is a one-off cost usually carried out by a centralized for-profit organization. As running the AI itself is much cheaper & even achievable by individuals on a single consumer-grade machine...
So, what is the incentive for this centralized organization to use a more expensive method? That does not even result in a commercially viable product, due to the lack of scale... The answer is that there is no legitimate incentive!
As there are only so many people they can fool into such a ponzinomic scheme, creating an upper bound on the size these subnets can grow to, which is nowhere near what large centralized AI companies can achieve today
Conclusion:
There is no future in such a bankrupt design!
It is all theatre to extract as much as possible; subnets are not created as competitive products. They are created simply to exist & to extract as much value out of token investors as possible!
There is much I did not cover in this critique, including "decentralization theatre", modularity, bad governance, perverse incentives & terrible UX. This critique was purely economic, which is bad enough to reject TAO on that basis alone!
As value investors, we have to avoid such nonsense. It is not only dangerous from an investment perspective, but it also harms the industry as a whole. The more we prop up nonsense like this, the more difficult it will be for outsiders to take our industry seriously
That is why we must speak out, as we care about crypto's ultimate goals. Financial freedom, censorship resistance, privacy & more
Reject the nonsense, as the numbers & facts speak for themselves. Crypto already presents us with such a beautiful dream for the future; let's not spoil our opportunity by wasting our energy on half-baked ideas like TAO
Crypto deserves better than that. So, help us spread this message far & wide. As the truth will set us free! 🔥