Flows to those who share the best answers.

Stays with those who ask the right questions.

Cannot be faked, better used than traded

- as τhe τruτh over τime iτ carried.

The native token of the Bittensor protocol: $TAO, used as an incentive and abstract representation of the intelligence produced inside the network.

1 $TAO is eqvuivalent to 1,000,000,000 (1 billion) $RAO - the smallest denomination of $TAO.[1]

$TAO functions as a currency that enables:

  • access to the network,
  • the ability to query the network, and
  • governance over the network.

Staking the token is the key mechanism that underpins and activates these functions.

Built on Polkadot's Substrate, a blockchain development framework chosen for an unique use case - to separate the incentive layer and production layer within one integrated ecosystem.[2]

The tokenomic framework of TAO draws inspiration from Bitcoin, adopting a hard cap of 21 million coins as the maximum supply to ever be minted. While TAO introduce its own unique features and rules within its tokenomics, the core principles it shares with Bitcoin aim to establish a similar level of trust, scarcity, and value appreciation over time.[3]

From the very beginning, the Opentensor Foundation took many precautions to ensure that TAO achieves the status of a commodity. This classification is significant, as it implies that TAO will not only serve as a medium of exchange or a store of value but will also be treated as a basic good that can be interchanged with other tokens of the same type.

Consequently, the team opted for a fair launch, meaning there were no pre-mined tokens or Initial Coin Offerings (ICOs). This approach guaranteed that each TAO token represented genuine machine learning efforts. Mirroring Bitcoin's introduction of a decentralized currency independent of centralized authority, Bittensor envisions a future where intelligence is impartial and free from corporate influence.[4]

"Bittensor Developer Documentation" by Opentensor Foundation

[1] https://docs.bittensor.com/glossary#tao

[2] https://docs.bittensor.com/glossary#substrate

"Bittensor Paradigm" by Jacob Stevens "Const"

[3] https://bittensor.com/about

"TAO Token Economy Explained" by Opentensor Foundation

[4] https://opentensor.medium.com/tao-token-economy-explained-17a3a90cd44e

Author: Bittensed Published: 01-02-2024 Edited: 21-06-2024 Views: 66268