Bittensor Core Contributor Introduced Gamma Token System
The new credit standard enables AI subnets to purchase compute services without liquidating native treasury holdings.
Updated on Oct. 3, 2026 in Artificial Intelligence
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Bittensor contributor Const Steeves unveiled the Gamma token system on September 28. This new credit standard aims to facilitate internal payments for AI compute, inference, and storage services across the network.
Why it matters
The system provides an internal settlement layer for subnets, allowing them to procure essential infrastructure resources without the need to liquidate their native token treasuries. This development comes as the network experienced rapid growth, reaching 129 active subnets by March 2026.
Users burn Alpha tokens to mint Gamma credits, which are pegged against a stable oracle basket. This infrastructure will be supported by seven initial issuing subnets: Chutes, Engy, GM, Lium, Targon, Hippius, and Affine.
The players
Const Steeves
A core contributor to the Bittensor network who announced the new Gamma token standard.
Bittensor Network
A decentralized machine learning platform that connects subnets to exchange compute resources and intelligence.
Covenant AI
A former subnet participant that exited the Bittensor ecosystem in April 2026.
The details
The Gamma token functions as a payment medium for compute, inference, and storage services within the Bittensor ecosystem. By burning Alpha tokens to generate Gamma credits, subnets can facilitate transactions for infrastructure resources. This mechanism separates utility payments from the volatility of the native TAO token, which has seen significant fluctuations, including an 18% to 19% drop on April 10, 2026.
Timeline
Early 2025: The network expanded to 32 active subnets.
Q1 2026: Subnets generated $43 million in AI compute revenue.
March 2026: The network reached 129 active subnets.
April 2026: Covenant AI exited the Bittensor network.
September 28, 2026: Const Steeves unveiled the Gamma token standard.
The Tech Race
This development marks a shift toward internalizing economic activity within the Bittensor ecosystem to support its rapid scaling. The platform's expansion from 32 subnets to 129 subnets underscores the necessity for specialized payment rails as the network moves away from external dependency.
Subnet operators will be able to utilize Gamma credits to pay for compute, inference, and storage services without liquidating TAO holdings once the system goes live. The change is expected to stabilize internal resource procurement once the 2027 launch occurs.
The takeaway
The transition to Gamma tokens reflects a strategic push to insulate AI resource markets from the price volatility of the broader Bittensor network. Observers should track the 2027 launch date to see if this settlement layer reduces the exit pressure seen earlier this year.
What happens next
The Gamma token standard is scheduled to launch in early 2027.
Further reading
For more on the evolution of decentralized infrastructure, visit Artificial Intelligence.
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