Glossary

This glossary provides clear definitions of key terms related to Bittensor and TaoFlow, helping users understand both the underlying network and platform-specific concepts.

Bittensor

1. TAO

The native token of the Bittensor network, created every ~12 seconds via mining and validation. TAO serves as an incentive and operational currency across the ecosystem.

2. Rao

A sub-unit of TAO, where 1 TAO = 1,000,000,000 Rao.

3. Subnet

A specialized network within Bittensor, focused on specific AI tasks or models. Each operates independently but contributes to the broader ecosystem.

4. Subnet Liquidity Pool (AMM)

Each subnet uses an Automated Market Maker (AMM) model with constant-product mechanics to facilitate swaps between TAO and alpha tokens. Slippage and fee implications follow typical AMM behavior.

5. Alpha Token (α Token)

A unique, subnet-specific token that is created when users stake TAO into a subnet’s liquidity pool. It functions as a dynamic currency within that subnet.

6. Alpha Token Price

The price of a subnet's alpha token is determined by the ratio of TAO in the subnet’s reserve to the amount of alpha in reserve.

7. Subnet Alpha Supply and Cap

Each subnet issues a capped supply of alpha tokens (often 21 million), emitting alpha at approximately twice the rate of TAO emissions.

8. Root Subnet (Subnet 0)

A special subnet without an alpha token. It allows users to stake TAO in a non-dilutive way and retains reduced yield weight compared to alpha-based subnets.

TaoFlow

9. Depositor

A user who deposits TAO into the liquidity pool, providing the capital that enables leveraged trading by others.

10. Trader

A user who locks TAO collateral to execute staking/unstaking trades via TaoFlow’s UI, operating with up to 10× leverage.

11. Revenue Split

Distribution of profits from successful trades:

• 70% → Trader

• 25% → Pool (benefits all depositors)

• 5% → TaoFlow Treasury

12. Auto-Liquidation

Mechanism triggered when a trader’s total potential loss exceeds 90% of their collateral:

1. Losses are deducted from collateral.

2. If insufficient, remaining loss is covered by TaoFlow Treasury.

13. Staking Cap

Limits the maximum allowed staking into a subnet to control exposure:

cap = 10% × TAO_in_Pool × (Alpha_in_Pool / TotalSupply) − TAO_in_Pool

Where:

• TAO_in_Pool, Alpha_in_Pool, and TotalSupply are subnet-specific metrics.

14. Leverage ×10

A feature allowing traders to open trades up to ten times their deposited collateral, maximizing capital efficiency.