$TAO Analysis : Bittensor enters its first halving, halving TAO issuance
Bittensor, the decentralized AI-focused network, is approaching its first-ever halving on December 14, officially closing its initial four-year cycle. This event will cut the daily issuance of TAO from 7,200 to 3,600, introducing a new phase of supply reduction for the ecosystem.
Bittensor operates as an open, decentralized network at the intersection of AI and crypto, allowing participants to contribute “intelligence” to improve AI systems. The network consists of individual subnets, each responsible for a specific AI task, and rewards contributors with TAO based on the usefulness of their outputs. There are currently 129 active subnets offering AI-driven services such as compute, data storage, agent frameworks, and deepfake detection.
The halving is expected to increase TAO’s scarcity as fewer tokens enter circulation and rewards to network contributors decline.
“Bitcoin’s history shows that reducing supply can strengthen a network’s value, even as rewards decrease, with both security and market value rising across four halving cycles,” said Will Ogden Moore, analyst at Grayscale Research. “Similarly, Bittensor’s first halving marks a major milestone as it moves closer to its 21 million token cap.”
Moore highlighted accelerating growth and rising institutional interest, pointing to February’s launch of dynamic TAO (dTAO), which allows subnets to become investable assets and has significantly expanded their market caps.
He noted that early success of subnet-based applications, growing institutional capital, and TAO’s upcoming halving could act as strong catalysts for price appreciation.
