Core Insights - Bittensor blockchain is approaching its first halving event, which will reduce the daily issuance of its TAO token from 7,200 to 3,600 once 10.5 million TAO tokens are distributed, marking half of its total supply of 21 million [1] - The halving is expected to occur on December 14 at around 3:30 am London time, with investors optimistic that this event will enhance the network's performance [2] Market Environment - The TAO token has experienced a decline of approximately 47% over the past year, influenced by a stagnant crypto market [3] - A supportive environment for long-term price appreciation may emerge if inflation decreases while demand remains steady, as historically, networks with halving mechanisms tend to perform better over time [3] - However, the impact on the token's price may take time to materialize, and macroeconomic factors, such as trade wars and interest rate policies, are currently affecting the broader crypto market [4] Subnet Economy - Bittensor aims to provide an alternative to centralized AI entities by allowing users to contribute computing power to AI applications, referred to as subnets, which are rewarded with TAO tokens [5] - The upcoming halving will significantly affect the subnet economy, potentially leading to a "flight to quality" where capital consolidates into profitable subnets, while less productive "zombie" subnets may struggle [6] Mining Dynamics - The halving will also impact miners who provide computing power to the Bittensor network, similar to the effects seen in Bitcoin, where miners are forced to adapt by diversifying into AI and seeking cheaper energy sources to maintain profitability [7]