Bittensor Token Drops 8% Following First Halving

Bittensor network undergoes first halving, TAO token drops 8%.

The AI-focused Bittensor network has undergone its first scheduled halving. Similar to Bitcoin, the block reward in TAO tokens has been halved.

The first ever #Bittensor halvening is complete

Block rewards have been cut to 0.5 $TAO per block

History.$TAO pic.twitter.com/3ybir8TpG5

— ＤＲＥＡＤ ＢＯＮＧＯ (@DreadBong0) December 15, 2025

As with the protocol of the first cryptocurrency, Bittensor’s halving is expected to occur approximately every four years.

“When inflation falls and demand remains stable, more favourable conditions for long-term price growth are created. Historically, networks with a halving mechanism have shown better performance in the long run as supply decreases while consumption grows,” stated Taoshi founder Arrash Yasavolian to DL News.

TAO prices plummeted by 8% over the day. Over the past year, the asset’s value has dropped nearly 53%. The token is trading around $266, with a market capitalization of approximately $2.5 billion.

Bittensor is a blockchain network designed to offer an alternative to centrally managed AI giants like OpenAI and Google.

The protocol allows anyone to contribute to the development of artificial intelligence applications using their computing power, which is organized into subnets. These entities are commonly referred to as miners.

“We anticipate a ‘flight to quality,’ where capital will aggressively concentrate in a few subnets generating real income, while ‘zombie subnets’ will be left starving,” said xTAO founder Karia Samaru.

Experts expect an effect similar to Bitcoin. The 2024 halving forced miners of the first cryptocurrency to diversify into AI and seek cheaper energy sources to maintain profitability.

“We expect a temporary narrowing of the profitability gap, leading to a consolidation of computing power in the hands of the most efficient players,” commented Samaru.

Earlier, Sygnum Bank anticipated that tokens associated with AI agents would become a new trend in 2025, moving beyond their status as speculative assets.