Delegated staking offers numerous validators, and selecting the right one can be challenging.

Once the validator enters our Staking Rewards Verified Staking Provider (VSP) Program, you will be able to support your decision-making process. Through this program, we thoroughly scrutinize potential validators, evaluating factors such as security measures, their on-chain reliability, their provider setup, and value-added services for the whole ecosystem. The overview of potential validators by Bittensor and Taostats Verified Validators List can be helpful, making it simpler for you to find one that matches your goals and values.

In addition, you can consider other metrics when selecting a validator to delegate to:

Commission: The commission rate the validator charges is the % of your reward that the validator keeps for themselves. A high commission rate means your rewards will be lower, whilst a low commission rate could mean that the validator is not profitable and could cause issues for them in the future. Keep in mind that validators can adjust their commission rates up or down over time. 

Number of Users: A high number of delegators could indicate positive sentiment towards a validator. 

Validators Self-Staked Balance: A provider with a high amount of staked tokens likely has more incentive to continue operating their services as they have more to lose than those with low self-staked balances. This metric has some limitations as validators can choose to delegate to their own validator from another wallet, which is done to increase the security of their funds. 

Network Share: Delegating to the most popular validators increases centralization risks within the network, while a validator with a low network share might not be profitable, increasing the risk of discontinuing their services. If a validator drops out of the eligible set, they also stop earning rewards. However, if you are willing to put more time in, delegating to a smaller validator helps support the network's decentralization. You would just have to make sure to check regularly if the provider is still active and operating.

A new TAO is minted every 12 seconds. This single TAO is then distributed among the 32 subnets. Therefore, every 12 seconds, each subnet receives a portion of the newly created TAO based on its performance. This fractional TAO reward, known as emission, is then distributed within the subnet as follows:

• 18% of it goes to the subnet owner.
• 41% goes to subnet validators (this is called dividend).
• 41% goes to the subnet miners (this is called incentive).

Validators determine the allocation for each subnet by assigning weights to them, a process conducted in the Root Subnet. The Yuma Consensus mechanism calculates the percentage allocation for each subnet across all validators, with prioritization based on the total stake held by each validator.

Consequently, validators with larger delegated stakes wield more influence over the value assigned to subnets and network participants. Although there is an ongoing discussion and proposal to transition this mechanism towards a more dynamic market-led solution known as Dynamic Tao, it is currently in the testing phase and hasn't been implemented yet.

You are welcome to play around with our TAO Staking Calculator to get a better feel of how these metrics can influence your rewards.

We strive to make staking as safe and transparent as possible, however, it's important to consider factors that may influence whether a particular staking option is appropriate for you.

Slashing risk: To promote alignment with the network's best interests, staked miners typically face slashing conditions. Should a miner violate network rules, such as double-signing a transaction or prolonged offline status, a portion of their staked tokens may be slashed or confiscated as a penalty.

Dropping out of the active set: A validator could drop out of the eligible set, meaning they no longer earn any rewards. Ensure you check back frequently to ensure your validator is active, not jailed, and has not unreasonably raised their commission fees.

Protocol security risks: There is an inherent risk that the network could contain unknown bugs, this risk applies not only to staking but also to the investment in TAO.

Data security risk: Data sent through Bittensor passes through multiple servers, involving a validator and a miner. Security of data cannot be assured, thus it's strongly advised to exercise caution when transmitting sensitive or confidential information across the Bittensor network.

Please note that this is not an exhaustive list of all the risks related to staking.

• You can check if your staking works following the Bittensor tutorial.
• By delegating to a good long-term oriented validator, you can reduce most of your maintenance.

The TAO token is the native cryptocurrency of the Bittensor network. It serves several key functions and purposes within the ecosystem:

Incentivization: The TAO token serves as an incentive for various participants in the Bittensor network. Miners, who provide computational resources for machine learning tasks, earn TAO tokens as compensation for their contributions. This reward system encourages the supply of computational power crucial for the network's decentralized machine learning operations.

Staking: You can engage in the network in various roles such as miners, validators, or delegators, and receive rewards. Miners and validators are required to stake TAO tokens. This process acts as collateral or a commitment, ensuring participants are incentivized to prioritize the network's well-being. Moreover, it enhances network security by imposing costs on any potential malicious actions by participants.

Governance: TAO tokens hold significance in the governance of the Bittensor network. Token holders can suggest alterations, vote for protocol enhancements, and engage in other decision-making procedures impacting the network. This ethos is in harmony with blockchain's decentralized principles, distributing control among stakeholders rather than centralizing it with a sole authority.

Transaction Fees: In the Bittensor network, transactions like token transfers or smart contract executions may necessitate fee payments. These fees, usually in TAO tokens, serve as compensation for validators and miners who process and safeguard transactions on the blockchain.

Economic Model: The TAO token forms the foundation of the Bittensor network's economic model. Its purpose is to harmonize the availability and need for computational resources, ensure alignment of incentives among participants, and enable seamless value exchange within the ecosystem.

Access to Services: Individuals seeking machine learning services from the Bittensor network may be required to utilize TAO tokens for payment. This establishes a marketplace for machine learning services, where tokens are exchanged for computational tasks such as data analysis, model training, or predictions.

The total supply of TAO is 21 million and it is pre-programmed. A block is mined approximately every 12 seconds, rewarding miners and validators with 1 TAO per block. Following the current inflation schedule, this results in 7200 new TAO tokens entering circulation every 24 hours, which are distributed equally between miners and validators.

Once half of the total supply is issued, the issuance rate is halved, occurring approximately every 4 years due to the 12-second block time. Each subsequent halving event corresponds to reaching halfway towards the total issuance until all 21 million TAO are in circulation.

Proof of Intelligence functions as the consensus mechanism within the Bittensor network, incentivizing nodes that provide beneficial machine-learning models and results. Unlike traditional Proof of Work (PoW) and Proof of Stake (PoS) methods, where nodes solve intricate mathematical puzzles, Proof of Intelligence tasks nodes with executing machine learning assignments to showcase their intellect. Nodes producing more accurate and valuable machine learning outcomes stand a greater chance of being chosen to append a new block to the chain and earning rewards in TAO tokens.

The consensus mechanism aims to incentivize valuable nodes within the network, employing game-theoretic scoring methods, such as the utilization of Shapley Value, to evaluate model performance and dependability in the Bittensor network. Shapley Value, drawn from cooperative game theory, assigns a value to each model, considering its incremental contribution to the network's prediction accuracy and overall collective intelligence.