Later today will be the most significant upgrade in Bittensor's history, on par with the significance of The Merge for Ethereum. Except instead of 5 years to implement the upgrade, Dynamic TAO will be developed and implemented within a year. Today, every subnet will receive its own fair-launched token and protocol native liquidity pool, initialized with 1 Alpha (subnet token) and 1 TAO, both with max supplies of 21M. This means each subnet starts with the same FDV as TAO (~$8.6B) at block 1. None of the subnets are obviously worth anywhere near that valuation yet, so you're looking at massively inflated initial valuations combined with extremely low liquidity. This is just the nature of fair launches, nothing new. However what is new is the protocol's built-in sell pressure through something called Root Proportion (introduced to help gradually transition Bittensor to the new emission system). At launch, Root Proportion starts very high, meaning a large portion of Alpha tokens go to root stakers (passive, risk-free participants) rather than Alpha holders (active, risk-on participants). Alpha tokens going to root stakers are automatically swapped into TAO by the protocol through the liquidity pools, and that TAO is distributed to stakers. So huge chunks of daily emissions end up being sold. To put some numbers on this: day one, about 20% of each Alpha token's supply gets automatically dumped into its liquidity pool. On day seven, about 18% of tokens emitted get automatically sold. This sell pressure exponentially decreases over time, but those first few weeks are going to be rough. Given the inflated starting valuations plus guaranteed heavy sell pressure early on, my strategy is to wait out the first few days and keep my TAO staked to the root network because I expect down-only subnet token charts. I’m approaching these subnets like liquid venture investments, so there's not much reason to be buying during the first few days anyways. I'll be monitoring the FDVs of subnets I have high conviction in, waiting for them to hit price levels that make sense. There's going to be intense volatility the first few weeks. And while this may create trading opportunities, the combination of low liquidity and high volatility means the chance of losing 99% of your TAO value in a subnet early on is pretty high. Opportunities to make money will exist, but they'll require a deep understanding of the underlying mechanics. This post may seem bearish but its not - I'm still extremely bullish. And I’d recommend everyone to use the first week of dTAO productively. Study the teams and build conviction in specific subnets. Success will come to those who remain patient, develop strong thesis-driven positions, and execute when market conditions align.

TRUMP: TARIFFS COULD GET A LOT WORSE