Bittensor, a decentralized machine-learning network, will have its first halving on Dec. 14, reducing TAO issuance to 3,600 tokens per day from 7,200. This event marks a milestone as the network approaches its 21 million token supply cap, similar to Bitcoin’s fixed limit. Investors see hard-capped supply as a value catalyst.

Bittensor’s subnets, described as “Y Combinator for decentralized AI networks,” operate like startups offering specialized services. There are over 100 subnets listed on CoinGecko with a total market cap exceeding $850 million. The growth of subnets like Chutes and Ridges shows increasing demand for decentralized AI infrastructure driven by developers scaling new AI products.

Venture capital is flowing into Bittensor subnets, with Inference Labs closing a $6.3 million round to support Subnet 2, a marketplace for inference verification. Infrastructure developer xTao, which supports the Bittensor ecosystem, began trading on the TSX Venture Exchange in July. The ecosystem is attracting investment and attention in the decentralized AI space.

Read more at CoinTelegraph: Bittensor Set for First TAO Halving on Dec. 14