$TAO Price Risks Deeper Correction Amid Root Reborn Governance Debate

Bittensor's $TAO token has been struggling since its June 15 peak, falling nearly 20% in value. The decline accelerated after criticism emerged around the proposed Root Reborn governance overhaul, which aims to reduce subnet token selling by changing how validators allocate capital across the network.

Supporters view the proposal as a long-term fix for Bittensor's tokenomics, while opponents argue it could introduce governance concentration, liquidity stress, and regulatory complications. Validator group Yuma warned that Root Reborn would transform validators from neutral network operators into active capital allocators, creating incentives for collusion, preferential treatment, and frontrunning.

The market has also been affected by macroeconomic conditions, with the stronger U.S. dollar and declining appetite for speculative assets pushing capital away from high-beta sectors, including artificial intelligence-linked cryptocurrencies.

The technical structure of $TAO price favors sellers below key resistance, with a daily chart showing the token breaking below a major horizontal support zone near $237.