What is Bittensor (TAO)?
Bittensor is a Crypto+AI concept project that promotes collaborative machine learning. The project aims to incentivize the generation of machine intelligence by rewarding users who contribute valuable data or computing resources with TAO tokens.
According to the official announcement on April 11, Binance will launch Bittensor (TAO) at 20:00 (GMT+8) on April 11, 2024, and open the following spot trading pairs: TAO/BTC, TAO/USDT, TAO/FDUSD, TAO/TRY. TAO deposit channel is now open, and TAO withdrawal is expected to be open at 20:00 (GMT+8) on April 12, 2024.
With the recent explosion in AI growth and popularity, many have offered different arguments about the intersection of AI and cryptocurrency. Two trends stand out:
Integration of AI with blockchain infrastructure, such as Render ($RNDR), Akash ($AKT), or Fetch.ai ($FET).
Protocols are emerging that incentivize the production of machine learning intelligence, such as Bittensor ($TAO).
As the AI sector surges, Bittensor ($Tao), as the leading token in the AI sector, has a market value of up to $3.8 billion, and its token price has repeatedly hit new highs.
At the same time, TAO’s rapid growth also means a slowdown in its growth, but the ecological projects developed around Bittensor are in the early stages of their rise.
If you missed TAO, but are still optimistic about the AI sector and Bittensor.
Affected by the upcoming listing on Binance, TAO briefly broke through 690 USDT, with a 17% increase in 1H
TAO briefly broke through 690 USDT and is now trading at 688.7 USDT, with a 1H increase of 17%.
Token Economy
TAO Token Economics Overview
Maximum supply: 21 million TAO tokens.
Release Schedule: Tokens are fully released in 256 years.
Market value: US$3.92 billion, ranked 27th.
Fully diluted valuation: $3.9 billion, ranked 49th.
Current circulating supply: 6.25 million TAO tokens, or 29.75% of the maximum supply.
Total supply: 6.25 million TAO tokens.
Token Generation and Distribution
TAO tokens are created through mining and network validation activities to promote the development of the decentralized ecosystem.
The network undergoes a halving event every 10.5 million blocks, with 64 halvings planned for approximately 45 years.
Rewards are issued at a rate of 1 TAO per block, approximately every 12 seconds, with a total of approximately 7,200 TAO tokens issued per day. These rewards will be distributed to miners and validators.
TAO Token Economic Model:
According to official documents, Bittensor had a "fair launch" in 2021 (no pre-mining of tokens), and the token was called TAO.
TAO has a supply of 21,000,000 (a nod to BTC) and also has a 4-year halving cycle, with the reward for each block halved every 10.5 million blocks. A total of 64 halving events will occur, with the most recent halving cycle occurring in August 25.
What’s a bit sci-fi is that according to this halving cycle, it will take 256 years for all these tokens to be fully mined.
Currently, one TAO is sent to the network every 12 seconds. Roughly speaking, 7,200 TAOs are produced per day, with miners and validators taking half each.
TAO's fair launch means that there are no common routines such as VC rounds, private placement rounds, ICO/IEO/IDO, foundation reserves, etc. It can be understood as a pure mining coin.
After each mining round, TAO will be distributed between validators and miners.
However, on Bittensor’s official website, we also saw well-known investors and market makers such as DCG, GSR, Polychain and Firstmask.
A reasonable guess is that since most of the validators in the network are currently associated with Bittensor’s official institutions, the mined coins can be kept by themselves and then distributed to market makers for market making;
At the same time, these large institutions can also act as verification nodes or even miners to mine TAO.
RivusDAO: Providing Liquid Staking for TAO:
RivusDAO provides liquidity staking services for AI-centric blockchains, including Bittensor. It introduces a liquidity staking mechanism for TAO through $rsTAO, enabling users to stake their wTAO on Ethereum and receive $rsTAO in return for staking rewards.
The vision of $rsTAO is to be integrated in DeFi applications in the ecosystem. For example, rsTAO can be used as collateral on Aave and other lending platforms.
Additionally, RivusDAO is developing a bridge to transfer assets from selected blockchains to Bittensor.
Market Performance and Valuation:
Judging from TAO’s market performance alone, the token price has increased more than 8 times from the lowest point this year to now;
But the problem is that other AI projects have also seen good growth. For example, RNDR has increased almost 5 times since the beginning of the year.
Compared with other popular AI projects, TAO's market value is currently second only to RNDR, but due to the existence of a long-term release mechanism of halving every 4 years, the ratio of market value to fully diluted value is the lowest among several projects, which also means that TAO's overall circulation is relatively low at present, but the unit price is higher.
Like any other token, the price of $TAO is determined by the basic economic principles of supply and demand. Increased demand for $TAO causes the price to rise, while decreased demand causes the price to fall. So the idea is that demand from ecosystem activity will offset supply releases.
You can only earn $TAO by contributing to the network. To do this, you need to buy it and hold it or spend it to start using the network.
Demand drivers:
Ecosystem Activities:
Validators require $TAO tokens to register.
Users can purchase $TAO to participate in the voting process related to Intelligence Alignment.
Used for payment within the network.
You need to stake and delegate $TAO to earn staking rewards. This helps protect against inflationary issuance.
Speculative premium is a way to bet on the upside potential of the convergence of two disruptive technologies, blockchain and artificial intelligence.
Network effects from more developers entering the network and leveraging the potential of the open source model
Supply Driven:
Total inflation emission token issuance reaches 21,000,000
Miners and validators can sell $TAO tokens to cover operating expenses. This aspect is similar to how Bitcoin miners sell Bitcoin to cover costs.
Bittensor (TAO) team and investors:
Bittensor is an open source protocol that powers decentralized, blockchain-based machine learning networks. The Bittensor team includes Jacob Steeves (founder), Ala Shaabana (founder), Jacqueline Dawn (marketing director), and Saeideh Motlagh (blockchain architect). The Opentensor Foundation plans to expand their team this year.
The Bittensor white paper also mentions a pseudonymous character named Yuma Rao, like Satoshi Nakamoto in Bitcoin. It is unclear whether this person actually exists, and we may never learn more about him or her.
The foundation is a non-profit organization that supports the development of Bittensor. Bittensor has not announced any official partnerships.
Summarize:
The Bittensor ecosystem is going through a period of growth and evolution, as evidenced by the clear increase in interest among notable entities registering subnets, and the growing user engagement on applications like Corcel.
The DeFi landscape in Bittensor is also expanding, although it is still in its early stages and currently only covers liquidity staking, bridges, and a few lending protocols. However, these are the foundation of any ecosystem.
Clear signs of registered subnets, growing application engagement, and an expanding DeFi ecosystem all indicate that the Bittensor ecosystem is poised to become a truly vibrant and innovative place, bringing new perspectives and opportunities to the AI and cryptocurrency sectors.
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