KR1 (LSE:KR1) announced it has launched technology infrastructure operations on Bittensor, a decentralised network coordinating artificial intelligence services, after acquiring 5,000 TAO, the network's native digital asset.
The London-listed onchain infrastructure company estimates annualised infrastructure income equivalent to approximately 6.6% of the current value of its deployed TAO holdings, based on reward rates observed as at 28 October.
Bittensor operates as a Layer 1 blockchain supporting decentralised markets known as subnets, covering services such as AI inference, computing capacity, training and prediction, where independent suppliers compete for network rewards based on performance.
KR1 deploys its TAO through staking operations, backing validators that assess service providers' performance in exchange for a share of network rewards, while retaining the ability to unstake without a mandatory unbonding period.
"As AI makes increasingly complex work executable in software, we expect demand for the infrastructure supplying that intelligence to grow substantially," said Keld van Schreven, managing director and co-founder of KR1.
"Our focus is on where its incentives are building services customers will keep paying for, and how we deploy our TAO holdings to grow the value and earning capacity of the productive digital assets behind each KR1 share", he added.
The company points to Chutes, an AI inference subnet on Bittensor, as a working example of the model, where businesses pay for AI processing on demand rather than owning the underlying infrastructure, with Chutes using token incentives to draw in independent operators.
KR1 said rewards generated from its TAO holdings may be retained to grow its productive asset base or realised to fund further investments and operating costs.
Further detail on the company's TAO holdings and related infrastructure income will appear in its regular monthly unaudited updates.