Tokenomics

Learn how tao and alpha tokens are emitted and distributed to participants on Bittensor.

Tao: The emission and distribution of tao into the subnets.

Alpha Tokens: Each subnet has a token that can be purchased with tao.

Subnet emission overview: Alpha emission is divided between the participants and the subnet pool.

Halving: Bittensor tokens (tao and alpha) follow the Bitcoin halving schedule.

Recycling: Neuron registrations, fees and swap costs result in tao/alpha being recycled,

Staking: Buy and sell alpha in each subnet. Or for a safer option, stake into the root subnet.

Definitions:

• Max Supply: total number of tokens that will be issued. For all Subnet alpha tokens and for tao, this is 21 million (each).
• Total Supply: Max Supply - burned. We can never exceed total supply, some tokens are burned.
• Burned: Tokens that have been destroyed without reducing issuance. They are never emitted again.
• Recycled: Tokens subtracted from issuance. These tokens can be issued again.
• Circulating Supply: Token that can be bought or sold.
  • For Subnets, this is a sum of alpha in the liquidity pool + all alpha that is staked.
  • For tao - this is all free tao and all staked tao.
• Total Issuance: Total of all tokens issued. This is circulating supply + all token that is burned.