Halving

The Halving in Bittensor reduces the rate of new TAO tokens entering circulation. Unlike Bitcoin which halves based on block numbers, Bittensor implements its halving based on the total token supply. When specific supply thresholds are reached, the emission rate of TAO is cut in half.

Recycling of registration fees can delay the halving date. When tokens are recycled, they return to the emission pool and thus taking tokens out of the circulating supply. This process extends the time until the next halving event. The more tokens recycled, the longer it takes to reach the next halving point.

The halving only affects the amount of TAO being injected into the subnet pools. Today's emission add 7,200 TAO to circulation each day. After the first halving, this rate will drop to 3,600 TAO per day. This reduction in supply can create value pressure on the token, in this case TAO.