According to the latest update from the network after the halving, the amount of TAO issued each day has decreased from 7,200 to 3,600 TAO, and the reward per block has been adjusted to 0.5 TAO. This is the first halving since Bittensor launched, marking a transition from the initial growth phase to a more tightly controlled supply phase.
If you look at it from the perspective of tokenomics, this halving has several notable implications:
The natural sell pressure from validators and miners has decreased significantly. Before the halving, the amount of TAO entering the market daily was quite large, making prices easy to suppress during periods of weak cash flow. Halving the issuance helps new supply become scarcer, creating conditions for the market to absorb better if demand remains the same or increases.
Halving forces subnets and validators to optimize operational efficiency rather than relying solely on issuance rewards. This may lead to less efficient subnets gradually being phased out, while subnets that truly create value for Bittensor's AI ecosystem will stand out more. In the long term, this is a factor that helps the network become 'higher quality', not just larger in quantity.
The halving of TAO occurs in the context of the AI + crypto narrative still being very strong. Unlike many chains that halve while their ecosystems are unclear, Bittensor already has a story about a decentralized AI network, competitive subnets, and a reward mechanism tied to the quality of contributions. This makes halving not just a supply shock, but also linked to the story of real value.
Of course, you should also understand that halving does not mean that the price will increase immediately. In the short term, the market may still fluctuate according to the general trend, and TAO could very well move sideways or adjust before reflecting the new supply-demand impact. Looking at the price performance of $BTC also shows that halving often needs time to settle in.
From a medium to long-term perspective, halving is often seen as a factor supporting supply-demand structure, especially if the Bittensor ecosystem continues to attract more use cases and real cash flow.