Bittensor, a decentralized artificial intelligence network, is on the cusp of a significant milestone - its first-ever halving. Scheduled to take place on or around December 14, 2025, this event will reduce the daily token issuance from 7,200 TAO to 3,600 TAO, effectively cutting the supply of new tokens in half.
What is Bittensor Halving?
Bittensor's halving is designed to create scarcity similar to Bitcoin's supply model. With a fixed supply cap of 21 million TAO, the network aims to mirror Bitcoin's scarcity-driven valuation model. The halving event is triggered when the circulating supply reaches 10.5 million tokens, which is expected to happen on December 14, 2025.
Impact on TAO's Price
The halving is expected to have a significant impact on TAO's price, with some analysts predicting a potential surge to $1,000 by year-end 2025 and $2,000 by early 2026. The reduced supply, combined with increasing demand from institutional investors, could drive up the price of TAO. However, others warn of a potential "sell the news" event, where the price might dip before recovering.
Institutional Adoption
Bittensor has been gaining traction among institutional investors, with products like Grayscale's Bittensor Trust and dynamic TAO making TAO more accessible. This influx of capital could offset the reduced supply and create a self-reinforcing cycle where scarcity and demand drive price appreciation.
Subnet Liquidity and Dynamics
The halving will also impact subnet liquidity, with subnets having strong fundamentals attracting more stakers and securing a larger share of the 3,600 daily emissions. Weaker subnets, on the other hand, may struggle to maintain liquidity. The Dynamic TAO (dTAO) upgrade has transformed how liquidity is allocated, enabling subnet-specific liquidity pools and allowing TAO holders to stake tokens to receive validator rewards.
Key Takeaways
- *Bittensor's halving*: Reduces daily TAO issuance from 7,200 to 3,600, increasing scarcity and potentially driving up the price.
- *Institutional adoption*: Increasing demand from institutional investors could offset reduced supply and drive price appreciation.
- *Subnet liquidity*: Strong subnets will attract more stakers, while weaker ones may struggle to maintain liquidity.
- *Price prediction*: Analysts predict a potential surge to $1,000 by year-end 2025 and $2,000 by early 2026, but warn of a potential "sell the news" event.
