Bittensor Football Season: The Subnet Playoffs Begin

Why This Matters

There’s a lot of buzz in the Bittensor community right now about subnet deregistration. If you’re new to the ecosystem or just curious, it can feel like inside baseball: What does it actually mean? Why does it matter? Who does it impact?

We want to break down the change in simpler terms, so that even if you’re not living in the codebase every day, you’ll understand it.

Soon, Bittensor will re-enable a new era of competition. Subnet deregistration will activate, introducing a playoff-style system where only the strongest survive.

When a new subnet registers, the one with the lowest EMA score (the current average of prices matters more than the older averages) is bumped down the standings. Just like in college football, a weak schedule or sloppy performance will cost you. And just like playoff brackets, the top seeds rise, fans rally, and the leaderboard reshuffles every season.

For subnets, this isn’t about staying comfortable, it’s about innovating to stay at the top.

The best teams rise to the top, weaker programs get cut, and fans rally around the contenders.

What This Means for Users (the Fans)

Just like college football, fans want to watch exciting matchups, Bittensor users benefit from higher-quality competition:

• Stronger subnets: Only top performers will remain.
• Better alignment: Better competition = better products.
• But some volatility: Your favorite subnet could get relegated, forcing you adjust to top performing subnets.
• When a subnet deregisters, its TAO pool gets split up: alpha holders get their share, and the subnet owner basically gets their lock back — minus whatever emissions they already collected.

For Subnet Owners (the Coaches)

Owning a subnet is no longer a static privilege, it’s like running a football program:

• High stakes: With high registration costs, building a subnet is like funding a serious sports program.
• Performance pressure: You need consistent “wins” to keep your spot.
• The subnet cap increase opens more slots (temporarily), intensifying long-term competition.

For Miners (the Players)

Miners are the heart of the game like athletes choosing which program to join.

• Flight to quality: Strong programs (subnets) will attract the best rosters (miners).
• Churn risk: If your subnet is deregistered, you’ll need to find to a new subnet to participate in.
• Opportunity: Miners who align with winning subnets will see outsized rewards, however; the pool is now smaller.

For Future Subnet Creators

This update is also an invitation to those new to the bittensor community.

• Openings appear: Whenever a low-ranked subnet is cut, a new contender can emerge.
• Higher barrier to entry: The cost ensures only serious builders step onto the field.
• Path to glory: With innovation, strong communities, and smart incentives, new subnets can quickly rise into playoff contention.

What does this mean to the TAO, when a Subnet Shuts Down?

1. Clear the Field (Liquidity is cleared out): Just like the grounds crew clears the stadium after the final whistle, all the subnet’s liquidity pools are dissolved. Nothing is left on the field.
2. Coach’s Buyout (Owner’s refund check): The subnet owner (the “coach”) might get some of their initial investment back (registration lock cost), but only after subtracting what they’ve already been paid throughout the season (emissions earned since creation). There’s a possibility they have already been paid out enough, having no buyout left.
3. Roster Check (Identify alpha holders): All the players (alpha holders) are counted, along with how much they put into the program (subnet).
4. Prize Pool Collection (Gather the TAO pool): The season’s leftover prize money (the subnet’s TAO pool) is pulled together.
5. Championship Payouts (Distribute TAO): The prize pool gets split fairly among the players+fans (alpha holders), based on how much they contributed (% of dTao pool individually owned). Everyone gets credited directly to their “account” (their coldkey balance).

The Bigger Picture: A Competitive League

Subnet deregistration marks the shift from exhibition games to a playoff environment.

• Rankings now prove worth, allowing competition.
• Competition ensures quality over quantity.
• The ecosystem becomes more resilient, innovative, and rewarding for top performers, hitting at the real thesis behind Bittensor.

For investors, the subnet opening may also create a type of scarcity dynamics. New openings mean more competition, and new opportunities, which could increase demand and possible price action.