Grayscale: Bittensor's halving event next week is expected to boost TAO prices

ME News, on December 8 (UTC+8), Grayscale research analyst Will Ogden Moore stated in a report that decentralized, AI-focused network Bittensor will experience its first halving event on December 14, marking the end of its initial four-year cycle. This key event will halve the daily issuance of its native token TAO from 7,200 to 3,600. Bittensor, as an open network combining AI and crypto technologies, allows users to freely contribute intelligence to improve AI systems. The network has multiple subnets, each focusing on specific AI tasks, and distributes TAO as incentives based on the utility of user input. Currently, there are 129 active subnets providing a variety of AI-driven services, including computing, data storage, AI agents, and deepfake detection. Moore pointed out that Bittensor’s halving event aims to increase the scarcity of TAO by reducing the amount of tokens allocated to network participants. He said, “Bitcoin’s history shows that despite reduced rewards, decreased supply can enhance network value, as its network security and market value have been strengthened through four consecutive halvings. Similarly, Bittensor’s first halving marks a key milestone in the network’s maturation process, moving it toward the 21 million token supply cap.” Moore noted that Bittensor is currently experiencing strong user adoption and rising institutional interest. He mentioned that the launch of dynamic TAO (dTAO) in February was a major achievement for Bittensor. This mechanism allows subnets to be directly invested in, resulting in a sharp expansion of the total market value of these subnets. Since the launch of dTAO, institutional investors such as Yuma Asset Management and Stillcore Capital have launched funds investing in Bittensor’s leading subnets. In addition, three publicly listed companies have established dedicated TAO treasuries. Among them, leading company TAO Synergies currently holds approximately $12 million worth of the token. Moore wrote in the report, “The early success of certain subnet applications and the increase of institutional capital in the Bittensor ecosystem, combined with the upcoming TAO supply halving, in our view, may serve as a positive catalyst for price appreciation.” According to The Block’s cryptocurrency price page, TAO rose 0.5% in the past 24 hours, trading at $282.31, but has dropped 28.4% over the past month. (The Block)

Previous news: Bittensor will experience its first halving on December 14, with daily TAO issuance to drop to 3,600 (Source: ME)