On October 16th, OpenTensor Foundation tweeted that Bittensor has restored the subnet registration and deregistration mechanism, with a limit of 128 subnets. New subnets will replace the lowest performing subnets and will have a 4-month immunity period. This update incentivizes subnet teams to prove their value or make room, increasing competition and project quality.

TAO from deregistered subnets will be proportionally distributed to alpha holders, unlocking TAO stuck in inactive liquidity pools and redirecting them to more active areas of the network. Registering a new subnet will incur a destruction cost, rather than a locking cost, with the current cost being 2500 TAO.