Skip to main content

Introduction to the Smart Allocator

Updated over 2 months ago

Overview

The Smart Allocator is an automation tool that helps you DCA (Dollar Cost Averaging) your TAO into different parts of the Bittensor network.

Instead of manually moving your rewards every day, the Smart Allocator programmatically handles the transactions for you—slowly building your positions in various AI projects (subnets) while you keep your keys secure in your own wallet.

How it Works

Everything happens inside your self-custody wallet. The tool simply automates two types of staking:

  1. ROOT Staking: This is the most common way to hold TAO. It is safe, stable, and earns you a consistent daily yield in TAO.

  2. Subnet Staking (DCA): This is where you support specific AI projects (like Image Generation or Data Storage). When you stake here, you are essentially "voting" on the success of that project with your TAO.

The Smart Allocator acts as your Personal DCA Assistant. It takes the yield you earn from your ROOT stake and automatically re-stakes it into subnets.

One Step at a Time (The Sequential Rule)

Bittensor subnets have a "minimum entry fee" (the minimum amount of TAO required to start a stake). Because of this, the Smart Allocator doesn't spread your daily reward across 20 projects at once.

Instead, it works sequentially:

  • It focuses your rewards on Project #1 until the minimum entry fee is met.

  • Once Project #1 is "filled," it moves to Project #2, and so on.

  • This ensures that even with smaller daily rewards, you are still making progress in the network.

Two Ways to DCA

  • Core Alpha: The tool automatically follows the Top 20 projects on the network. If the leaderboard changes, your DCA list changes with it.

  • Custom: You hand-pick the specific projects you want to DCA into.

Is my TAO safe?

Yes. The Smart Allocator is a "non-custodial" tool. This means:

  • Your Keys, Your TAO: Your assets never leave your wallet.

  • No Selling: The tool only moves your new rewards. It never sells your existing holdings or moves your principal TAO without your permission.

  • Total Control: You can turn off the allocator or change your strategy at any time.

Pro Tip: While you can use any amount, this tool works best if you have ~15 or more TAO. This ensures you generate enough daily yield to reach the "entry fee" for subnets every few days.

Did this answer your question?