Bittensor Halving Begins as TAO Supply Tightens Rapidly
- TAO issuance drops as the halving begins and the network enters a new supply era.
- Subnet growth accelerates as utility-based rewards drive advancement across tasks.
- Institutional funds expand TAO exposure as network demand moves into new territory.
Bittensor will complete its first halving on Dec. 14, as the decentralized AI network cuts TAO issuance from 7,200 to 3,600 per day. The event starts its next supply cycle while the platform advances new integrations, institutional participation, and subnet expansion. The halving anchors the network’s early-year cycle, while EVM expansion and subnet maturity guide developments over the second half.
Halving Begins as Bittensor Ends Its Initial Four-Year Cycle
The halving reduces emissions for the first time since the network’s 2021 fair launch. The new issuance rate moves the network closer to its 21 million token limit. The network functions as an open marketplace where users contribute intelligence to improve AI systems.
These contributions receive TAO rewards based on measurable utility. The platform currently operates 129 active subnets, offering compute, data storage, AI agents, and deepfake detection. Each subnet performs distinct tasks that support the network’s overall intelligence layer.
Grayscale Research Analyst Will Ogden Moore stated that the supply reduction follows a pattern seen in Bitcoin. “Bitcoin’s history shows that reduced supply can enhance network value despite smaller rewards,” he said. Moore stated that Bittensor marks a significant step toward long-term maturity as it approaches its fixed cap.
Supply Shock Aligns With Network Growth and Institutional Demand
The halving creates a significant supply shock for TAO at first. New tokens would be produced at a rate of one-half the previous rate. Annual inflation will be about 1.3% after the event, which is below Bitcoin’s inflation rate. The demand for subnets continues to increase, mainly because emissions are being redirected to reward verifiable utility.
Subnets that deliver real output gain more stake and receive larger rewards. Next year, subnets focused on AI inference, prediction markets, and synthetic data may drive additional network expansion if demand continues to rise. Institutional interest also grows. Moore noted strong adoption after the launch of the dynamic.
In February, TAO (dTAO) made subnets directly investable. Funds from Yuma Asset Management and Stillcore Capital now hold positions in leading subnets, and three public firms also created TAO treasuries. TAO Synergies holds about $12 million worth of the token. The trend signals growing corporate participation as the network scales.
Network Roadmap Advances as TAO Integrates Deeper Into Crypto
Bittensor moves toward EVM compatibility. The upgrade will open access for more developers and applications. It may also enable liquid staking, lending markets, and cross-chain activity throughout 2026. The network plans to expand decentralized AI in 2026 through the updated rewards model.
The model directs emissions toward sound output to strengthen subnet performance as adoption grows. A pivotal question emerges as the supply shock approaches: Can rising demand offset reduced issuance as the network scales its decentralized AI ecosystem?
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TAO Market Performance Strengthens Ahead of the Halving
At the time of publishing, TAO is priced at $291.17, representing a 3.16% increase in a day amidst a turbulent trading session. The market cap has grown to $3.04 billion, reflecting a 3.23% increase, while the market cap of the unlocked tokens is $3.12 billion. The trading volume of the token soared to $130.48 million, a rise of 73.21%, raising the Vol/Mkt Cap ratio to 4.28%.
The token’s maximum supply remains 21M, with 10.45M currently in circulation. The platform lists a 74% profile score. The chart showed intraday lows near $270 before recovering above $291, with sharp swings between red and green zones through the trading window.
The upcoming halving will introduce a decisive reduction in TAO supply at a moment when network adoption, institutional demand, and subnet expansion continue to accelerate. Together, these factors position Bittensor for a structurally tighter market environment that may influence its long-term growth trajectory.
