Taoshi—a decentralized AI-driven trading firm—has launched what it claims to be the world’s largest competition for trading signals, offering over $30 million in annualized rewards. The competition, part of its Proprietary Trading Network (PTN) built atop Bittensor’s decentralized AI infrastructure, is already attracting elite traders with promises of compensation previously reserved for hedge fund managers.
Founded in 2023, Taoshi is positioning itself at the intersection of blockchain transparency, artificial intelligence, and high-performance trading. Its mission: to crowdsource sophisticated investing strategies from global talent pools, then aggregate those into a dynamic “super strategy” that adapts to real-time market conditions.
A $30M Incentive for Decentralized Alpha
At the heart of Taoshi’s offering is its 60-day challenge period. Traders compete to rank in the top 75th percentile of risk-adjusted performance—measured not just by returns but also by discipline. Any trader drawing down more than 10% during the challenge is disqualified. Those who pass join Taoshi’s PTN and gain eligibility to receive real-time rewards distributed hourly in tandem with new block generations on the Bittensor Subnet 8.
In addition to reward eligibility, standout traders can apply for a smart contract program that awards the equivalent of $100,000 in Taoshi’s native Theta token, further aligning incentives to develop resilient strategies.
The Bittensor Edge: Blockchain Meets Crowdsourced Alpha
What sets Taoshi apart from traditional quant shops or copy trading platforms is its foundation on Bittensor, a decentralized network where AI models compete and collaborate to optimize shared outputs. Subnet 8, managed by Taoshi, is specifically designed to curate top-tier financial strategies.
This setup allows Taoshi to tap into an expanding pool of finance-focused “miners”—data scientists, quants, and independent traders—who contribute to the network’s trading intelligence. Their contributions are evaluated and combined into a “super strategy” designed to adjust to shifts across crypto, forex, equities, and derivatives markets.
As financial institutions wrestle with integrating AI safely into trading workflows, Taoshi presents a radical model: one where algorithmic alpha is built openly and rewarded transparently.
Beyond elite finance circles, the implications are significant for retail investors. By compiling high-quality strategies and stress-testing them on-chain, Taoshi’s upcoming wealth-building platform promises access to trading signals that once sat behind the paywalls of hedge funds.
This approach, if successful, could mark a turning point in how investment products are built. By replacing centralized fund managers with a dynamic, AI-enhanced signal pool, Taoshi may offer an alternative to both passive index funds and high-fee hedge strategies.
Competitive Landscape and Institutional Implications
While retail-facing platforms like eToro and Zignaly have experimented with social and copy trading, Taoshi’s use of AI aggregation and its embedded incentive mechanisms distinguish it in both structure and scope. It also arrives at a time when institutional players are increasingly looking to AI-driven alpha generation.
Taoshi’s model is potentially disruptive. It combines the open innovation of GitHub with the rigor of a quant hedge fund. The key will be how well it curates and scales these strategies in volatile environments.
The launch comes amid broader momentum for decentralized financial applications. Bittensor, originally known for AI compute sharing, has been gaining traction as a substrate for next-gen Web3 products across research, trading, and data infrastructure.
Looking Ahead
Taoshi’s challenge is ongoing, with traders worldwide able to apply through its website. As strategies are evaluated, rewarded, and integrated, the company plans to roll out a full investment platform leveraging the aggregated “super strategy” to offer portfolios tailored to retail and institutional needs.
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