Bittensor Subnet - Crazy growth potential16 Dec 2025 13:38
Something which very few people even in Bittensor understand.
The power of Subnet token APY over a 2 or 3 year period.
Will explain in webinars properly in the new year, but all of the subnets have APYs ranging between 40-90% realistically. Some say 150% but it's short lived. And this isn't pie in the sky stuff, it's all down to the token distribution mechanics. TAO has a 4 year halving schedule, subnets have roughly a 2 year halving schedule.
Anyway, the beauty here is that when you buy subnet tokens, those tokens accrue yield every 12 seconds and so when calculating the compounding, you do it via a daily compounding basis.
So here is a purely hypothetical example...
E.g. Let's say Astrid were to buy $300k of SN85 Vidaio, the world's best video compression and upscaling AI. Assuming a low APY of 40% and we simply hold that for 3 years.
So that's about 18 months left of 40% until its first halving and then 18 months of 20%.
$300k = 1000 TAO (for easy maths)
1000T / 0.009T (rough price of SN85) = 111 111 subnet tokens.
(0.4/365+1)^547 x 111 111 = 202 280 subnet tokens after 18 months. Then....
(0.2/365+1)^547 x 202 280 = 272 952.
So after 3 years of holding SN85, you go from an initial amount of 111 111 tokens to 272 952.
But that's not the end, you now need to factor in the price of the subnet and also the price of TAO.
So let's be incredibly pessimistic and assume the subnet price only grows to 0.02 and TAO is only $500. These are ridiculously pessimistic.
272 952 x 0.02 = 5459 TAO x $500 = $2.72m
That's a very easy $2.72m from an initial $300k investment.
Imagine if Astrid were to create a special vault that automagically accumulated and sucked in all and any subnet tokens all day everyday?
Imagine if Astrid allocated all the TAO it had into subnets and not only make short term profits but also played the 3 year APY game... Imagine the numbers...
In fact, even if the price of TAO fell precipitously down to $100, the profits would still be mind-blowing.