TAO Halves In*

The Bittensor halving is a key event that reduces the rate at which new TAO tokens are created in the Bittensor network. Similar to Bitcoin, Bittensor has a maximum supply of 21 million TAO and halves its emission rate approximately every four years, or when half the total supply (10,500,000 TAO) is in circulation. The first halving is estimated to occur around 12th of December 2025, though this date may shift due to network dynamics..

Every 12 seconds, a block is completed, emitting 1 TAO into the network.

• This results in 7,200 TAO emitted daily, which will drop to 3,600 TAO after the first halving.
• The emitted TAO flows into subnet liquidity pools, where it's injected alongside Alpha tokens at the current price ratio.
• Rewards for miners, validators, and subnet owners come from Alpha emissions, which are distributed separately from the pool injection mechanism.
• Unlike Bitcoin, which halves based on block count, Bittensor's halving is triggered by total TAO issuance reaching predetermined supply thresholds.

In February 2025, Bittensor introduced Dynamic TAO, a system where each subnet has its own Alpha token that trades against TAO in decentralized markets. Both TAO and Alpha tokens follow the same halving schedule:

• Each subnet emits 1 Alpha token per block, which is halved alongside TAO.
• All tokens approach a maximum supply of 21 million.
• Early subnets benefit from faster liquidity growth, while later subnets face slower growth due to halving.

Two factors can push back the halving date:

1. Recycling: TAO spent on miner registration is returned to the network, reducing the circulating supply and delaying the halving.
2. Dynamic TAO: The introduction of Alpha tokens and shifting network activity can slightly alter the halving timeline.

The halving cuts TAO emissions and liquidity pool injections (both TAO and Alpha) in half, which affects long-term liquidity dynamics for subnets. Importantly, Alpha rewards distributed to miners, validators, and subnet owners do not halve and remain constant. The reduced TAO emission rate could potentially increase TAO's value due to lower supply inflation. Subnets launched earlier will have accumulated more liquidity from the higher pre-halving injection rates, giving them an advantage over subnets launched closer to or after the halving.