Bittensor Unveils Gamma Tokens Amid Governance Concerns
Bittensor has introduced Gamma tokens, a new currency for its AI subnets to buy and sell compute from each other without touching TAO. This move comes at an awkward time, as the network is still dealing with the aftermath of one of its biggest subnet teams, Covenant AI, leaving the network due to disagreements with Const Steeves, a core contributor at the OpenTensor Foundation. Steeves claimed that he has no authority to suspend subnet emissions and that his token sales were normal market mechanics. The dispute has raised questions about the governance of Bittensor and whether it is truly decentralized.
The Gamma token is priced against a stable oracle basket and can be minted by subnets burning a portion of their Alpha tokens. This new system is designed to solve a coordination problem for subnet operators, allowing them to pay each other directly in credits instead of liquidating their token treasuries. The standard for Gamma is slated to go live in early 2027, but its success will depend on how well it is executed and whether it improves incentive alignment for validators and miners.
The introduction of Gamma tokens has been met with skepticism, and some have questioned whether it will simply add another token for speculators to trade. The governance fight that led to Covenant AI's departure from the network has also raised concerns about the trustworthiness of the people running the foundation issuing the rules.