Bittensor's first halving cuts TAO issuance in half as AI network hits maturation milestone

Crypto's other halving: Bittensor's first 4-year cycle seen as 'maturation' milestone

Bittensor's first token halving arrives Dec. 14, cutting TAO issuance in half as the AI-focused network adopts a Bitcoin-style fixed supply model. With Bitcoin now in its fourth quadrennial halving, other decentralized projects have adopted similar supply-cut cycles -- and Bittensor is approaching its first since launching in 2021. Bittensor, a decentralized, open-source machine-learning network built around specialized "subnets" that incentivize marketplaces for AI services, is expected to undergo its inaugural halving on or around Dec. 14. At that point, issuance of its native token, TAO (TAO), will drop to 3,600 per day from the current 7,200. Grayscale Research analyst William Ogden Moore called the event a "key milestone in the network's maturation as it progresses toward its 21 million token supply cap," matching Bitcoin's (BTC) fixed limit. Digital-asset investors and network participants often view a hard-capped supply as a potential value catalyst: if adoption grows and token demand rises, a finite issuance model can be more appealing than pre-mined tokens or fiat currencies with effectively unlimited supply. Cointelegraph reported on Bittensor in May during a conversation with DNA Fund's Chris Miglino, whose AI compute fund is heavily involved in the Bittensor ecosystem. "The biggest thing that we're working on in the whole ecosystem is our AI compute fund, where we've been entrenched into the TAO ecosystem," Miglino said. Related: Grayscale introduces Bittensor and Sui trust products Grayscale describes Bittensor's subnets as a kind of "Y Combinator for decentralized AI networks," since each operates like a startup building a specialized product or service. CoinGecko currently lists over 100 Bittensor subnets, with a combined market cap exceeding $850 million. Taostats, which tracks the ecosystem more comprehensively, shows 129 subnets with a total market cap closer to $3 billion. In either case, subnet valuations have grown significantly since launch, according to Grayscale Research. The largest include Chutes, which provides serverless compute for AI models, and Ridges, a subnet focused on crowdsourcing the development of AI agents. The expansion underscores growing demand for decentralized AI infrastructure as developers race to build and scale new AI products and applications. As Miglino told Cointelegraph, decentralized AI may prove to be blockchain's most significant use case since Bitcoin, driven largely by that demand.

Bittensor to halve TAO issuance on December 14

Bittensor, a decentralized open-source machine learning network launched in 2021, will undergo its first token halving on December 14. This event halves daily issuance of its native token TAO from 7,200 to 3,600 tokens, advancing toward a 21 million token supply cap modeled after Bitcoin. The network operates through specialized subnets that create marketplaces for AI services by incentivizing participation. Each subnet functions independently, fostering development in various AI domains. This structure has driven the ecosystem's growth since inception, as developers integrate blockchain incentives with artificial intelligence applications. Grayscale Research analyst William Ogden Moore described the halving as a key milestone in the network's maturation as it progresses toward its 21 million token supply cap. This fixed limit aligns Bittensor with Bitcoin's supply mechanism, where issuance decreases over time in predetermined cycles. Digital-asset investors and network participants regard the hard-capped supply as a potential value catalyst. In scenarios of increasing adoption and rising token demand, the finite issuance contrasts with pre-mined tokens or fiat currencies that permit unlimited supply expansions. Cointelegraph covered Bittensor in May through a discussion with Chris Miglino of DNA Fund. Miglino explained the fund's focus on AI compute initiatives within the ecosystem. He stated, "The biggest thing that we're working on in the whole ecosystem is our AI compute fund, where we've been entrenched into the TAO ecosystem." This involvement underscores the fund's commitment to enhancing computational resources for Bittensor's operations. Grayscale characterizes Bittensor's subnets as a Y Combinator for decentralized AI networks, with each subnet resembling a startup that develops targeted products or services in AI. CoinGecko records over 100 active subnets, collectively holding a market capitalization exceeding $850 million. Taostats provides a more extensive tally, listing 129 subnets with a total market cap approaching $3 billion. These valuations represent substantial increases from the network's early days, as documented by Grayscale Research. The growth reflects broader interest in decentralized AI solutions. Among the prominent subnets, Chutes delivers serverless compute capabilities tailored for AI models, enabling efficient execution without dedicated infrastructure management. Ridges concentrates on crowdsourcing efforts to advance AI agent development, aggregating contributions from multiple participants to refine intelligent systems. This proliferation of subnets highlights escalating demand for decentralized AI infrastructure. Developers actively construct and expand AI products and applications, necessitating robust, distributed computing environments. As Miglino noted to Cointelegraph, decentralized AI stands as blockchain's most significant application since Bitcoin, propelled by this surging demand for innovative AI tools. Venture capital has increasingly targeted Bittensor subnets. Inference Labs secured a $6.3 million funding round to bolster Subnet 2, which establishes a marketplace dedicated to verifying AI inference processes. This platform ensures accuracy in model outputs, supporting reliable AI deployments across the network. Separately, xTao, a developer of infrastructure tools and services for the Bittensor ecosystem, commenced trading on the TSX Venture Exchange in July. As a newly public entity, xTao aims to provide essential support for ecosystem expansion, including software and operational enhancements.