A: Initial transposase domestication event. A family of DNA transposon is shown with autonomous and nonautonomous copies dispersed in the genome. Each TIR (black arrowhead) contains a binding site for a transposase encoded by autonomous copies (pink/yellow boxes). Flanking host genes are shown as grey boxes. One of the transposase genes (yellow box) is recruited. In this example, recruitment is promoted by transcriptional fusion of the transposase to a flanking host gene (blue box) encoding a regulatory domain, leading to the expression of a fusion protein with transpoase (yellow) and regulatory domains (blue). This is similar to the emergence of SETMAR, which arose by fusion of a mariner transposase with an adjacent gene encoding a SET domain. Note however that transposase domestication does not need to involve fusion with another domain, particularly if the transposase itself possesses regulatory activity, as demonstrated for FHY3, a transcription factor in Arabidopsis entirely derived from a Mutator transposase. B: Immediate consequences of transposase domestication. The translational fusion immediately allows the regulatory domain to be tethered to all the sites in the genome recognized by the transposase, i.e. the TIRs of all the transposon copies previously dispersed in the genome. Depending on the genomic environment of the transposons, binding of the fusion protein might have various effects on the expression of the surrounding genes: activation, repression or no effect. These effects are symbolized by the blue arrow acting on adjacent gene. C: Binding sites selection. Natural selection will retain interactions that provide an immediate benefit to the host and will eliminate deleterious interactions. Site elimination (red cross) may occur through substitutions or deletion driven by positive selection. Sites that are selectively neutral (with no positive or negative impact on adjacent genes) are expected to evolve neutrally and most will eventually disappear. Mobility of the transposons at this stage (if it persists) might accelerate the shaping of the network through transposon excision events and/or fixation of new advantageous insertions. D: A regulatory network is born. The end result is the assembly of a regulatory network, where the domesticated transposase and a subset of its ancestral binding sites conferring beneficial interactions are evolving under purifying selection, while the rest of the transposons are eroded by mutations. Note that the system also provides an intuitive opportunity for the establishment of a feedback loop “F” (positive or negative) through domestication of binding sites that were originally linked to the domesticated transposase.