Understanding the Bittensor Halving
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 10th of December 2025, though this date may shift due to network dynamics..
How It Works
- Every 12 seconds, a block is completed, rewarding 1 TAO to miners, validators, subnet owners, and delegators.
- This results in 7,200 TAO emitted daily, which will drop to 3,600 TAO after the first halving.
- Unlike Bitcoin, which halves based on block count, Bittensor’s halving is triggered by the total TAO supply.
Dynamic TAO and Alpha Tokens
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.
What Delays the Halving?
Two factors can push back the halving date:
- Recycling: TAO spent on miner registration is returned to the network, reducing the circulating supply and delaying the halving.
- Dynamic TAO: The introduction of Alpha tokens and shifting network activity can slightly alter the halving timeline.
Impact on the Network
The halving reduces rewards for miners, validators, and subnet owners, potentially increasing TAO’s value due to lower supply. Subnets launched earlier will have an advantage in liquidity growth compared to those launched closer to or after the halving.