Bittensor (TAO) announced it had stopped emissions to subnets that were not distributing the rewards to the miners. Despite the efforts taken to control the quality of the subnet by reducing reward leakage, the TAO prices are still crashing. The whales stack up on short positions, as retailers go long.
Bittensor stops rewards leakage to inactive subnets
Bittensor’s maintenance organization, OpenTensor Foundation’s cofounder, Const, announced the emission of rewards to subnets. The network stopped emitting newly minted tokens to subnets that were not rewarding the miners.
The network decided to stop the emission, as miners, the actual participants who perform the AI or data-processing work, in a subnet are not being rewarded. As such, Bittensor’s incentive system seems to be not working as intended.
During the audit, the network spotted 57 subnets that had no minor distribution. This is generally viewed as a quality-control measure. And by reducing emissions to inactive subnets, Bittensor can reduce reward leakage and increase competition among active subnets. Furthermore, it can strengthen the economic value of TAO emissions while pushing subnet operators to prove real utility rather than simply registering a subnet.
If TAO slips below $219, it could crash to $200
However, despite these efforts by the network to stop the spillage of rewards and ensure they end up with miners, prices have been crashing. Priced at $219 at the time of writing, the token is currently at a pivotal support level.
A slip below this level will see the token crash towards the $200 price level, where the lower trendline of the symmetrical triangle pattern is. Since the pattern has been forming over the past 4 months, there is every chance that TAO’s crash will stop once it hits the lower trendline of the symmetrical triangle.
Thereafter, the token will once again rebound off of the lower trendline and move towards the upper trendline and continue this zigzag pattern until the pattern is fully formed.
Whales stack up long position to catch retailers off guard
But there is some alarming news for TAO. An analyst named Joao Wedson figured out that the whales’ short positions were increasing while retailers were stacking short positions.
Having stated this, the analyst warned that major liquidation could be coming, as the market always moves in the opposite direction of the retailers. The lower trendline of the symmetrical pattern could be a major area the whales would be targeting to catch the market off guard. This would be a perfect spot since whales know there would be more retail long positions expecting the price to rebound.
