The Startup Using AI and Blockchain to Take Prop Trading Away From Wall Street
Staff Writer • 2025-08-11
For decades, the best trading strategies have been locked behind hedge fund doors. If you were not an accredited investor with millions to commit, you were not getting access. Prop firms promised a way in but came with high fees, restrictive funding caps and in some cases, practices designed to make traders fail. Arrash Yasavolian, CEO of Taoshi, thinks that model is broken. On the Stonks Go Moon Podcast, Yasavolian explained how Taoshi is building one of the top performing AI trading networks on Bittensor, an open-source blockchain designed to reward useful innovation instead of hype. Taoshi operates on Subnet 8 of the Bittensor network and has created what Yasavolian calls a decentralized prop firm. Instead of charging traders to prove themselves in environments stacked against them, Taoshi pays them to compete. The best strategies are combined into a single subscription product called Glitch, which automates trades directly in a user’s own exchange account. “It is built for the many, not the few,” Yasavolian said. “Retail investors have been sidelined for too long. They have been given Martingale strategies or robo-advisors telling them to buy T-bills. They have never had access to truly effective trading strategies with high risk-adjusted returns.” Glitch works without taking custody of client funds. Users simply connect their exchange account, pick their configuration and the system trades automatically using signals generated by Taoshi’s top-ranked traders. Those traders are often quants using machine learning models to fine-tune entries and exits. Bittensor’s incentive system plays a key role. Traders, or “miners” in the network, stake collateral in Taoshi’s token to prove confidence in their strategies. If they perform poorly, a portion of that collateral is burned or redistributed, creating a direct cost for underperformance. Validators on the network can also attempt to beat Taoshi’s benchmark strategies and get rewarded for doing so. The model is attracting interest fast. Taoshi pays out between 20 and 25 million dollars annualized to top-performing traders and integrates with major exchanges including Binance, Bybit, Hyperliquid, dYdX and soon Coinbase and Kraken. Yasavolian’s goal for the rest of the year is clear. Build a more user-friendly interface, remove crypto-specific onboarding hurdles and push to become the largest prop firm in the world. An SEC Registered Investment Adviser designation is also in the works to onboard U.S. customers.
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