Bittensor (TAO): what it is and how it works

Important: following the alignment with Regulation (EU) 2023/1114 (MiCAR), on Young Platform Bittensor (TAO) is currently available for selling only: it can no longer be bought or deposited. Selling remains possible with no deadlines.

What is Bittensor (TAO)

Bittensor is a project in the field of decentralised artificial intelligence: it aims to overcome the limits of AI models controlled by a few large companies, proposing a distributed infrastructure in which different algorithms “learn” and compete with one another collaboratively.

The TAO token is at the centre of this ecosystem: it is used to access the network, take part in its activities and reward the contributions of participants who provide models and computing power. It is one of the projects that combine the two major themes of the moment, AI and crypto-assets.

How it works: subnets and incentives

The network is organised into specialised “subnets”, each dedicated to a specific task, managed by validators and by “miners” who in this context are providers of models and computing power. The infrastructure relies on Subtensor, a blockchain compatible with the Ethereum Virtual Machine and integrated into the Polkadot ecosystem.

A mechanism called “Yuma Consensus” manages the incentive system, distributing rewards based on the quality of contributions. Any rewards nonetheless remain variable and not guaranteed, and depend on the network’s activity and parameters.

Token and the dTAO upgrade

Like Bitcoin, TAO has a maximum supply capped at 21 million units, a deliberate nod to the deflationary model of the first crypto-asset in history.

In 2025 the “dTAO” upgrade introduced an important change: a dedicated token for each subnet, paired with TAO in a liquidity pool, with a price-discovery process based on supply and demand. It is an evolution that makes the ecosystem more articulated but also more complex to assess.

Past performance is not a guarantee of future results.