The Fund’s Thesis

Producing superior AI hinges on two critical challenges: 

1. Orchestrating brilliant minds and computing resources at global scale

2. Optimizing every layer of the stack faster than competitors

Cryptoeconomic protocols solve both. They’re coordination and optimization engines that can be used to reshape how intelligence is discovered, aligned, and scaled.

We believe this is crypto’s most important application since Bitcoin created a non-sovereign store of value.

Cryptoeconomic protocols outperform centralized organizations in building intelligence through four key mechanisms:

• Ownership: Token incentives transform contributors into owners, creating skin-in-the-game motivation that no salary can replicate.

• Competitive Arenas: Development becomes a global competition where talented individuals and teams constantly push each other to excel, accelerating innovation at speeds that make traditional R&D appear glacial.

• Specialized Knowledge Networks: Unlocking contributions from domain experts with specialized knowledge, uncovering optimization opportunities that remain invisible to even the most forward-thinking centralized teams.

• Frictionless Resource Allocation: By eliminating bureaucratic inefficiencies, corporate politics, and geographic limitations, expertise and computing resources flow naturally to where they create the most value.

For us, Bittensor is the most compelling execution of these principles. Nested within are subnets—each focused on a specific task, whether improving models, refining data pipelines, or scaling compute. The open, competitive structure attracts top-tier contributors who collaborate and compete to push the frontier forward. It’s a system built to produce intelligence—faster, leaner, and more effectively than any centralized alternative.