Bittensor (TAO)

Tokenomics & Utility

TAO and subnet tokens

TAO is the native token of the entire Bittensor network. It is used for transfers, transaction fees, registration, and staking. People can stake TAO with a validator on the root subnet, or commit it to a specialized subnet. In the latter case, the staking process exchanges TAO for that subnet’s own token, often called an alpha token. Each subnet’s alpha is distinct; its value within the system depends on that subnet’s pool of TAO and alpha. (preview.bittensor.com)

Dynamic TAO links subnet rewards to the amount of support a subnet attracts. The blockchain issues TAO and allocates it among subnets through the network’s emission rules. Within a subnet, rewards are then divided among its owner, miners, validators, and their stakers. This gives each group a different part in keeping a service running: owners design it, miners produce its output, validators assess that output, and stakers support validators. (docs.learnbittensor.org)

TAO has a maximum supply of 21 million. New issuance began at one TAO per block and halves when total issuance passes set thresholds. The first halving occurred in December 2025, reducing new issuance to half a TAO per block. The halving schedule is based on issuance thresholds rather than fixed calendar dates. Each subnet’s alpha also has a maximum supply under the network’s token rules. (bittensor.com)

Staking also affects how rewards are shared. A person who delegates stake to a validator can receive a share of that validator’s rewards, after the validator’s portion is deducted. Subnet staking and root staking work differently: root staking keeps the position in TAO, while staking into a specialized subnet involves its alpha token. (preview.bittensor.com)