Bittensor is preparing for its first halving event, which is anticipated to occur around December 14. Upon this event, the daily issuance of TAO tokens will be reduced from 7,200 to 3,600. The network, which launched in 2021, operates on a fixed-supply model, similar to Bitcoin, with a total cap of 21 million tokens.
William Ogden Moore, an analyst at Grayscale Research, has highlighted the significance of the halving, describing it as a crucial milestone that signifies the project's progression into a more mature phase of its development.
Bittensor’s first halving is approaching soon, reducing $TAO emissions from 7,200 to 3,600 per day. With growing institutional interest and expanding AI subnets, this could be a key moment for the network’s evolution.
Read @TheBlock__ article: https://t.co/JuRplyTwHM
— Grayscale (@Grayscale) December 10, 2025
Why a Halving Matters
Supply adjustments are often a focal point in the cryptocurrency space. Investors frequently find tokens with fixed issuance schedules more appealing compared to assets with unlimited supply potential. When demand increases and supply becomes constrained, scarcity can contribute to value appreciation. TAO's tokenomics are designed to mirror Bitcoin's approach, featuring a predictable release schedule without a pre-mine or sudden supply expansions.
A Growing Ecosystem of AI Subnets
Bittensor operates using "subnets," which are specialized, smaller networks functioning as distinct teams within the broader ecosystem. Each subnet is dedicated to a specific AI service, such as providing compute power, developing AI agents, or offering inference tools.
Current data from CoinGecko indicates that there are over 100 active subnets, with their combined valuations exceeding hundreds of millions of dollars. Taostats, another tracking platform, lists 129 subnets and estimates their total valuation closer to $3 billion. This significant expansion points to a growing interest in decentralized AI systems.
Prominent subnets include Chutes, which provides serverless compute capabilities for AI models, and Ridges, which is focused on the development and enhancement of AI agents.
Developers and VCs Are Taking Notice
Investor interest is clearly on the rise. Inference Labs recently concluded a $6.3 million funding round to support Subnet 2, which is responsible for verifying AI inference. Additionally, xTao, a key infrastructure developer within the Bittensor ecosystem, went public this year through its listing on the TSX Venture Exchange.
Funds specializing in artificial intelligence are also increasing their engagement. Chris Miglino of DNA Fund has characterized the Bittensor ecosystem as one of the most dynamic areas within decentralized AI today.
What Comes Next?
The halving event occurs at a time when the price of TAO has experienced downward pressure. However, this event has the potential to influence market sentiment. If network activity continues to grow and demand for AI services expands, the reduced issuance could positively impact the token's long-term outlook.
For the present, all attention is directed towards December 14, as Bittensor embarks on its first major supply reduction, marking a new phase in the ongoing effort to build decentralized AI infrastructure.
