What is Bittensor and TAO token?

Bittensor is a decentralized, open-source network that combines artificial intelligence (AI) and blockchain technology to create a collaborative and incentive-driven ecosystem for machine learning (ML) models.

Its core aim is to democratize access to AI by allowing anyone to create, train, and share ML models on a peer-to-peer platform, rather than relying on centralized tech giants like OpenAI.

Developers earn TAO tokens based on how useful their work is. The more value developers add, the more they will be rewarded. 

In the Bittensor network, machine learning models-referred to as "neurons"-can interact, learn from each other, and compete or collaborate to solve complex problems.

The network is structured around subnets, each designed for specific AI tasks, such as text or image generation. 

This enables a marketplace for AI services, where developers can monetize their models and users can access a wide variety of AI capabilities at lower costs.

Furthermore, Bittensor introduced Ethereum Virtual Machine (EVM) compatibility in late 2024, developers can build on the network using EVM. 

Bittensor has integrated full Ethereum Virtual Machine (EVM) compatibility into its core blockchain, Subtensor.

This means developers can now deploy and interact with most Ethereum smart contracts on the Bittensor network without needing to modify the code.

The EVM compatibility layer allows Bittensor to support a wide range of decentralized applications (dApps), such as DeFi platforms, NFTs, and blockchain bridges, 

Key features of Bittensor include:

• Decentralization: Eliminates intermediaries, fostering transparency and resilience.
• Incentivization: Rewards contributors (miners and validators) for computational work and model innovation.
• Governance: Allows token holders to vote on network proposals and upgrades.

TAO Token

TAO is the native cryptocurrency of the Bittensor network. It serves several essential functions:

• Incentive Mechanism: TAO is distributed as rewards to miners (who contribute computational power and models) and validators (who secure and validate the network).
• Payment: Used to access AI applications and services within the Bittensor ecosystem.
• Governance: Token holders can vote on network proposals, upgrades, and funding allocations.
• Staking: Validators must stake TAO to participate in network validation and earn rewards.

Tokenomics

• Supply: TAO has a capped maximum supply of 21 million tokens, mirroring Bitcoin’s scarcity model.
• Halving: The issuance rate of new TAO tokens undergoes periodic halving events, reducing the daily reward over time to control inflation. Halvings occur based on the amount of TAO mined rather than a fixed block interval.
• Distribution: TAO was fair-launched with no pre-mining or pre-sales to venture capitalists. The token is mined through network participation, with rewards split evenly between miners and validators.

Bittensor (TAO) Summary Table

Bittensor and its TAO token represent an approach to AI development and access, leveraging blockchain to create an open, community-driven AI marketplace.