Bittensor Describes Itself As

Bittensor is an open-source, decentralized, and permissionless machine learning network that functions as an alternative to centralized artificial intelligence (AI) solutions such as OpenAI. Bittensor views AI as a commodity, and seeks to create a novel marketplace capable of efficiently supporting the production and trade of it. Within Bittensor, users are able to submit their own machine learning models, which are then tested, trained, and ranked by other neural networks.  

Bittensor borrows its tokenomics from Bitcoin, following four-year halving cycles, and a 21 million max supply. 

TAO is the digital currency utilized within the Bittensor ecosystem. Its two primary functions are that of rewards and access. TAO is used to reward miners, validators, and machine learning models that provide information to the collective. Users can also extract information from the system by paying in TAO.

The Bittensor network and TAO token were launched in 2021, with TAO being distributed via fair-launch, meaning no tokens were pre-mined.

About the founders

Bittensor was founded by Ala Shaabana and Jacob Robert Steeves in 2019.

Ala Shaabana holds a PhD in Computer Science from McMaster University, and was an Assistant Professor at the University of Toronto from 2020 to 2021.

Jacob Robert Steeves holds a Bachelor of Applied Science in Mathematics and Computer Science from Simon Fraser University, and worked at Google as a Software Engineer between 2016 and 2018. 

Risks of TAO

Like an investment in other crypto assets, there are some general risks to investing in TAO. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in TAO is subject to the following specific risks:

• Bittensor faces competition from other AI platforms, notably, established solutions such as OpenAI. Any potential success associated with TAO depends on Bittensor’s rate of adoption. Furthermore, the project’s future trajectory hinges on the decisions made by a global community of TAO token holders and ecosystem contributors. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with TAO.  Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The TAO community and Bittensor co-founders are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of TAO have no recourse to the TAO and Bittensor community, Bittensor co-founders, or Uphold if TAO declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing TAO on the Uphold Platform, Uphold performed due diligence on TAO and determined that TAO is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of TAO, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of TAO.
• Any marketing materials put forward by the TAO social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with TAO, including any code defects, security breaches and other threats concerning TAO and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with TAO, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of TAO.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on December 8, 2023.