Bittensor Launches Decentralized AI Network With TAO Token and 90+ Subnets

Bittensor is pioneering a decentralized artificial intelligence network by leveraging blockchain technology and economic incentives. The project's native token, TAO, plays a central role in facilitating economic activity within the ecosystem. Bittensor envisions a global “Neural Network” where AI models learn and evolve collectively through decentralized collaboration [1]. The network is structured around subnets—mini-networks specialized in specific AI tasks—where models compete for rewards based on performance [1].

The Yuma Consensus, a core mechanism of Bittensor, ensures fair compensation by evaluating the contributions of miners and validators. Miners are rewarded according to the value of their AI outputs, while validators are incentivized to provide accurate and consistent evaluations. This system aggregates assessments from validators, giving more weight to those deemed more trustworthy [1]. Safeguards such as clipping prevent manipulation by limiting rewards for scores that deviate significantly from the consensus [1].

TAO is the backbone of the Bittensor ecosystem. It is used for registration, staking, and as a medium of exchange within the network. Unlike traditional blockchain tokens, TAO’s value is tied to AI services rather than block space. The token’s design mirrors Bitcoin’s scarcity and halving model, with a maximum supply of 21 million and scheduled halving events to control issuance [1]. The first halving is expected in November 2025 [1].

Subnets are the building blocks of the Bittensor network. Each subnet is designed to address a specific AI task, such as text generation, image synthesis, or model fine-tuning. These subnets foster competition among AI models, encouraging innovation and efficiency. Subnet owners define the rules and incentives, and anyone can create a subnet by locking TAO for its duration [1]. With over 90 active subnets, the network spans a wide range of applications, from DeFi optimization to decentralized data storage [1].

Bittensor’s decentralized model addresses concerns over data ownership, algorithmic bias, and centralized control. By removing reliance on a single entity, the network promotes transparency and reduces the risk of censorship. As centralized AI platforms increasingly filter or avoid sensitive topics, a decentralized alternative like Bittensor may appeal to users seeking more objective and trustworthy outputs [1].

A recent upgrade, dynamic TAO (dTAO), introduced in February 2025, restructured the emission mechanism to be more market-driven. Instead of relying on validator weightings, emissions now flow through a system of subnet-specific Alpha tokens. This change is aimed at addressing bottlenecks, conflicts of interest, and poor coordination among validators [1]. The new system allows participants to stake TAO in support of specific subnets, aligning incentives more closely with market demand [1].

TAO holders can delegate their tokens through platforms like Taostats, enabling them to earn rewards from validator performance. A minimum delegation of 0.1 TAO is required, and transactions are limited to once every 72 minutes [1]. The TAO bridge also allows for permissionless asset transfers between Bittensor and Ethereum, enhancing liquidity and accessibility [1].

Bittensor’s ecosystem includes diverse participants: subnet owners, miners, validators, delegators, and consumers. Each plays a role in maintaining the integrity and efficiency of the network. As demand for AI services grows, so does the potential for TAO to become a critical asset in the decentralized AI landscape [1].

The project has garnered attention from notable figures, including Chamath Palihapitiya, who mentioned Bittensor as one he is “looking into.” A major event, the Bittensor Summit “Endgame,” is scheduled for April 2025, offering a platform for deeper engagement with the DeAI space [1].

Bittensor represents a novel approach to AI development, applying the principles of decentralization and incentive alignment to machine intelligence. By creating a blockchain-based marketplace for AI, Bittensor aims to redefine how AI models are trained, evaluated, and monetized [1].

Source: [1] Bittensor Explained: How TAO and Subnets Power Decentralized AI (https://www.coingecko.com/learn/what-is-bittensor-tao-decentralized-ai)