Bittensor Halving: A New Era for AI Rewards

Bittensor is on the verge of its inaugural halving event, a significant milestone that will cut the rewards of $TAO by 50% throughout its decentralized AI network. This transition will lower daily emissions from approximately 7,200 TAO to 3,600 TAO, directly affecting the rewards available to miners, validators, and stakers.

This halving marks a pivotal moment in the evolution of Bittensor’s economy, signaling a move towards a more sustainable and mature framework, akin to the principles established by Bitcoin.

Bittensor is redefining the approach to artificial intelligence, providing opportunities for everyone—from individual developers to large teams—through a decentralized and incentivized network model.

Participants are rewarded in $TAO for offering valuable computational power or delivering high-quality machine-learning results, transforming intelligence into a tradable and decentralized asset.

Structure of the Bittensor Network

Founded by Jacob Robert Steeves and Ala Shaabana, Bittensor introduces an innovative concept known as Proof-of-Intelligence, wherein participants receive rewards based not on computational power alone but on the actual intelligence measured in their contributions.

The network is organized as a series of independent subnets, each forming its own self-contained AI economy:

• Miners provide machine-learning outputs or models.
• Validators assess and evaluate results, distributing rewards based on quality.
• Subnet creators establish unique incentive systems tailored to their goals.
• Stakers delegate their $TAO to validators, gaining returns based on performance.

As more users join the network, these subnets evolve to become specialized, enhancing both the diversity and efficiency of outputs. All activities are recorded on-chain, promoting transparency and rewarding innovation over centralized authority.

The $TAO token is essential for staking, delegation, registration, and governance within the ecosystem. It has a capped supply of 21 million tokens, with approximately 1 TAO allocated for each block every 12 seconds.

Reward Distribution Model

Rewards are allocated every 360 blocks as follows:

Any $TAO used for subnet registration or operational activities is recycled back into the emission pool, ensuring a continuous and balanced distribution of rewards.

How to Get Involved with Bittensor

Here’s a simple guide on how to participate in Bittensor through either staking or mining:

1. Staking: Earning Passively

   Staking offers an effortless way to benefit from network activity without needing extensive infrastructure.

   • Step 1: Setup your Wallet → Download the Bittensor Wallet to create your coldkey (for storage) and hotkey (for staking). It is compatible with various multi-chain wallets, including Talisman.
   • Step 2: Acquire $TAO → Purchase $TAO from major exchanges and transfer it to your wallet.
   • Step 3: Delegate to Validators → Research validator performance and delegate your TAO through the provided interfaces. Validators typically charge a small commission, with rewards distributed automatically.

2. Mining: A Rewarding Contribution

   Mining on Bittensor focuses on providing genuine AI computations rather than traditional proof-of-work.

   • Step 1: Setup → Use a GPU-based server with reliable bandwidth. Establish your coldkey and hotkey.
   • Step 2: Register Your Miner → Register your hotkey on a subnet and acquire a UID slot to begin mining.
   • Step 3: Process AI Tasks → Run the mining software to fulfill validator requests. Your performance will be assessed regularly, and top-performing miners will earn more $TAO.

By participating in Bittensor, you can access rewards and infrastructure that facilitate the advancement of AI, making cutting-edge technology more accessible and inclusive for all.

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