#tao What is TAO?

TAO token is the native cryptocurrency of the Bittensor network. It has several basic functions and purposes within the ecosystem:

Incentive: TAO is used to incentivize various participants in the Bittensor network. Thanks to its reward mechanism, it encourages the provision of computing power required for decentralized machine learning processes.

Staking: To join the network as miners and earn rewards, users must stake TAO tokens. It also secures the network by preventing any participant from engaging in malicious behavior.

Governance: TAO holders can participate in the governance of the network and vote on decision-making processes such as protocol updates.

Transaction Fees: Transactions on the Bittensor network often require payment of fees. These fees are paid with TAO.

Economic Model: TAO grounds the economic model of the network. It is designed to balance the supply and demand of computing resources, align incentives among participants, and facilitate the exchange of value within the ecosystem.

Access to Services: Users who need machine learning services provided by the Bittensor network can pay for these services using TAO.

The circulating supply of TAO, which has a total supply of 21,000,000 units, is 6,327,131 units at the time of writing and is traded at $608.