As Bitcoin embarks on its fourth halving cycle, other decentralized projects are following suit, with Bittensor nearing its first halving since its 2021 launch. Bittensor, a decentralized, open-source network that facilitates AI service marketplaces through specialized “subnets,” is set for its inaugural halving around December 14. This event will see the daily issuance of its native token, TAO, decrease from 7,200 to 3,600. According to Grayscale Research analyst William Ogden Moore, this halving represents a crucial stage in Bittensor's development, aligning with its eventual goal of a 21 million token supply cap, akin to Bitcoin’s fixed limit.
Investors and network participants in the digital asset space often perceive a capped supply as a potential booster of value. In scenarios where adoption increases and demand for tokens rises, a finite issuance model can be more attractive compared to pre-mined tokens or fiat currencies with limitless supply.
Cointelegraph highlighted Bittensor in May during a discussion with Chris Miglino from DNA Fund, whose AI compute fund plays a significant role in the Bittensor ecosystem. Miglino noted the fund’s deep involvement in the TAO ecosystem, emphasizing the importance of their AI compute initiatives.
Bittensor’s subnets are likened to a "Y Combinator for decentralized AI networks" by Grayscale, functioning like startups that develop specialized products or services. CoinGecko lists over 100 Bittensor subnets with a market cap surpassing $850 million, while Taostats, offering a more detailed ecosystem view, reports 129 subnets with a combined market cap close to $3 billion. This growth highlights the increasing demand for decentralized AI infrastructure, as developers aim to create and scale innovative AI products and applications.
Miglino suggested that decentralized AI could become blockchain's most significant application since Bitcoin, largely due to this burgeoning demand. Venture capital interest in Bittensor subnets is also on the rise, with Inference Labs securing $6.3 million to back Subnet 2, a marketplace within Bittensor for inference verification.