Metagraph CapitalInvestment brief · Short edition · Confidential11 October 2026

Vidaio (SN85)

Vidaio sells AI video compression and upscaling by the minute through a website and an API, and runs a Bittensor subnet whose miners compete every two weeks to supply the models. Its best-known claim is that its files are "up to 80% smaller", restated this week by an investor as "half the size of AWS compression"; the team's own commissioned benchmark (17 Jun 2026) found 7.8–9.7% fewer bits than open-source FFmpeg at the same picture quality, with the cost advantage coming from hitting a quality target in one encode. Revenue is claimed and not evidenced: a credit-billed API, a joint venture with a UK post-production house and one enterprise test are described, but no customer count, usage or dollar figure is published. The token is a claim on $4.43M a year of issuance, 86% of its $5.17M market cap; the owner's account has been a net seller of alpha for the last 30 days.

Market cap$5.17M3,071,932 α at $1.68, block 9,260,910, 11 Oct (chain)
Alpha issued per year$4.43M7,200 α/day at spot; 86% of market cap (chain)
Customer revenueClaimedcredit-billed API and a JV described; no figure; owner net seller −134 τ/30d (taorevenue)
Owner lock4.6%of circulating; 3.7% placed by an outside account, 0.9% by the owner (chain)

In short

What Vidaio sells, and what checks out

What Vidaio sells, at what price, and to whomvidaio.io (browser, 11 Oct 2026; products, pricing and blog pages redirect to sign-in), api.vidaio.io/openapi.json, @vidaio_.
ItemDetail
ProductsVideo upscaling (2×/4×) and AI-driven compression, by upload on the site or by URL through the API; live streaming with AI dubbing and subtitles is "coming soon" (the beta streamed the Exploit Summit on 28–29 Sep); dubbing and localisation are sold through PIP Studios as CABIN
How it is billedCredits: the API refuses a job without credits (HTTP 402) and consumes them when the result is fetched. No public price list; the June benchmark priced Vidaio at about $0.067 a delivered minute. The October 2025 plan was about $0.05 a minute at a 75% margin, with enterprise fiat split 75% to miners and 25% to Vidaio; none of that is in the September 2026 whitepaper
Channels"One stack. Five verticals" (18 Aug): PIP (localisation dashboard), Sentinel (own compression tool), Manako (compression embedded on a client's site), Vidaio Enterprise, Vidaio Retail; "PiP and Manako are rolling out"
CustomersNone named. The 4 Aug enterprise test and the IBC prospects are unnamed; PIP's studio clients are PIP's. No usage or revenue figure on the site, API, X, TAO Daily's twenty-plus articles or the podcasts
FinancingDSV Fund OTC purchase, 1 Dec 2025, amount undisclosed (TAO Daily); MEXC listing 6 May 2026; Stillcore covers Vidaio and its partner mined it, no round disclosed. Incubated by the parent company of Taostats (Graichen, Apr 2025)

At equal picture quality Vidaio saves 8–10% against FFmpeg; its edge is one encode to a target, not file size

Bits saved at the same picture quality: Vidaio's one published benchmark against open-source and commercial encodersThe measure buyers use is bitrate at a fixed VMAF score (Netflix's perceptual metric; about 93 is indistinguishable from the source). Vidaio rows from its 17 Jun 2026 benchmark (commissioned, firm unnamed, 30 clips); other rows from the linked tests.
Encoder or methodCompared withBits saved at equal qualitySource and caveat
Vidaio (AV1)Self-hosted FFmpeg, same codec7.8%Vidaio-commissioned; hit the target in one encode in 68% of jobs
Vidaio (H.265)Self-hosted FFmpeg9.7%Same test
AWS MediaConvert, single encodeSelf-hosted FFmpeg−90% (file larger)TAO Daily, 24 Jun on the same test; AWS was not allowed its usual multi-pass search
Beamr CABR (content-adaptive bitrate)The customer's existing encode30–50% claimedBeamr on AWS Marketplace; vendor claim
Deep Render neural codecSVT-AV145–46%Jan Ozer, May 2025, subjective test; low-latency configuration only
AV1 (any encoder)x265 (H.265)about 35%Streaming Media; the codec step buyers take first

Upscaling has no published head-to-head: the MSU upscaler benchmark lists Topaz and Real-ESRGAN but Vidaio has not entered it, and Vidaio's competitions score entries on its own hidden clips, so quality against Topaz (now Adobe's) is unrated rather than rated and losing.

On list price the cloud encoders are cheaper; Vidaio's pitch is the workflow

What a buyer pays for a minute of HD encoding or upscaling elsewherePrice pages read 11 Oct 2026; Vidaio's figure is the benchmark estimate, as it publishes no price list.
VendorWhat the buyer getsPrice per output minute
VidaioCompression to a VMAF target in one encode; upscaling 2×/4×; credit-billed APIabout $0.067 (benchmark estimate); upscaling not published
AWS Elemental MediaConvertHD AVC single pass $0.024, multi-pass $0.042; HEVC $0.048–0.084; 4K higher$0.024–0.084
BitmovinPer-title encoding, pay as you go after 2,000 free minutes a month$0.02
Google Transcoder APIHD output, any codec$0.030
Beamr CloudContent-adaptive bitrate reduction on AWS$0.04 plus compute
Mux, Coconut, api.videoEncoding bundled with hosting and deliveryfree–$0.031; $0.015
Topaz Video (Adobe) via fal.aiAI upscaling to 720p, 1080p, 4K$0.60–3.60

On rate card Vidaio is two to three times the cloud encoders. Its pitch is that it reaches a quality target in one pass where the others need three to five, which only matters to a buyer who encodes to a VMAF target rather than a preset; the benchmark's $145,000 alternative is that search loop priced at list.

Who earns what: every dollar paid on SN85 is new issuance

Who is paid on SN85, for what, and whether any of it is customer moneyChain, block 9,260,910 (11 Oct 2026), alpha $1.68 = 0.00582 τ × Kraken TAO $289.65; 7,200 α issued a day, protocol split 18/41/41. Shares from the epoch 25659 log and the chain's Incentive vector, which match.
WhoWhat they doHow they are paidPer dayCustomer money?
Miners (five paid slots)Enter a sealed code competition every two weeks (compression, upscaling, object removal, now frame interpolation); the latest result's five placed entries share all miner emission for two weeks, 89.55% to the winner. The 73 miners serving everyday compression and upscaling requests earn nothing since 27 SepNew alpha$5.0kNo
Validators and stakers (one paid hotkey)Copy the weight vector that Vidaio's own scoring server publishes each epoch, after checking its hash on chain. The owner's hotkey receives all validator dividends; 25 outside hotkeys delegate through it and earn 30–37% a yearNew alpha$5.0kNo
Vidaio, the subnet owner (coldkey 5GTPB…)Runs the scoring server, the competitions, the website and the API; holds 2.2% of alpha; sold a net 134 τ of alpha in the 30 days to 11 OctThe 18% owner cut in alpha$2.2kNo
Licensing treasury (UID 111)A hotkey the team registered on 6 Oct to pay "licensing fees" to winners whose code runs on the website; it takes 0.5% of miner emission while a result pays and 50% of any gapNew alpha$0.0kNo
Alpha holdersNo buyback, burn-from-revenue or fee sink. 30 days to 11 Oct: owner buys −$38,864 (net sales), burn $14,795 (emission sent to the sink slot, not a purchase), outflow $337,120, team-verified——No
Emission received down 94% in 12 months, to 3.9 τ a day
Revenue proxy, as on the Vidaio dashboard: TAO the network pays into SN85's pool each day (SubnetTaoInEmission × 7,200), chain samples since registration. No customer revenue series exists: vidaio.io, its product dashboard and pricing (sign-in wall), api.vidaio.io (per-key routes only, no totals), the three GitHub repositories, the authority's epoch logs (payouts, not jobs), taorevenue (owner-key buys only, no history) and TAO Daily were checked. Why it is here: the closest on-chain measure of what the subnet is paid, by the network rather than by customers; it follows the pool's share of all alpha prices, not usage. The chain also cuts a subnet's share when its miner pay is burned to an owner UID (MinerBurned gate): from 25 Jun up to 95% was, and moving the sink to a non-owner key on 28 Sep lifted emission from 1.9 to 6.4 τ a day. Chain.
0 τ100 τJul 25Oct 25Jan 26Apr 26Jul 26Oct 26

The contest pays five places every two weeks, 90% to the winner

How Vidaio's miner contest worksvidaio.io/competitions (11 Oct 2026 16:06 UTC) and MINING.md; payouts cross-checked against the chain at block 9,260,910.
QuestionAnswer
CadenceA competition every two weeks, each result paying for two weeks. Live: frame interpolation 003b (double the frame rate; speed counts 30% of the score), enrolment closes 16 Oct 14:00 UTC, results not before 20 Oct
Entry costRegistration 0.0005 τ; a stake floor of 500 α (about $840) on the entering hotkey; the miner's own development and GPU time. Entries are private repositories at a pinned commit, run sealed without network on an L40S against 16 hidden clips; commercial licences only
Split, on chainCrown (score at or over the bar, 0.85 here): 90/4/3/2/1 to five places; podium: 50/24/13/8/5. Today UID 202 holds 89.55% for winning object removal 002 (score 0.789 against 28 ranked entries); the licensing treasury takes 0.5%
Miners paid against entriesFive paid of 28 ranked in the last result; three entries so far in the live one. The 73 miners enrolled on the inference tracks (51 compression, 22 upscaling) are paid nothing
Is the winning code published?A crown winner is paid only after its source archive is released, and the results page links one; podium code stays private. The team's premium encoder is "not part of the public build"

Supply side

Miners paid on chain fell from 100 to 6 since 14 Apr

Miner slots (UIDs) validators paid each day, read from chain (latest block 9,248,983); the owner's own key is left out because the chain burns its share. Slots, not companies. About 100 slots were paid until mid-June 2026; the June rule change paid the top five per pool (ten), and since 27 September only the latest competition's five placed entries and the licensing-treasury slot are paid, so the fall tracks the payout rules, not miners leaving: 73 miners are enrolled on the inference tracks and earn nothing.

The owner holds 2.2% of alpha and sold a net 134 TAO in 30 days

The owner coldkey holds 66,813 α (2.2% of outstanding, $112.5k) and sold a net 134 τ ($38,864) of alpha in the 30 days to 11 Oct (taorevenue, team-verified); it locked about a third of its holding with a decaying lock, and an outside account locked a further 3.7% of all alpha to its hotkey permanently. Its 18% cut is worth $0.80M a year at spot, against no measured customer revenue.

The network has issued $12.01M of alpha to SN85 since April 2025 at the prices of the time; the weekly cost peaked at $700.2k in May 2025 and is $73.0k now
Alpha issued each day (SubnetAlphaOutEmission × 7,200) valued at that day's pool price and Kraken TAOUSD close, summed by week; chain samples at the first block of each day from registration (1 Apr 2025) to 9,260,910, the same series as the Vidaio dashboard. Issued 3.85M alpha; 3.07M outstanding, so about 0.78M alpha (20%) has been burned (RecycleOrBurn = Burn), most of it under the March to September 2026 rules that burned up to 80% of miner emission.
$0k$200k$400k$600kJul 25Oct 25Jan 26Apr 26Jul 26Oct 26

What would change our mind