What is Bittensor (TAO)?

Bittensor is not an AI product, nor does it directly provide AI products or services. Instead, it is an economic system designed to optimize the market for AI products. By providing competitive incentives for AI product producers, Bittensor promotes the rise of high-quality producers while gradually eliminating less competitive producers.

As the native token of the Bittensor network, TAO's intrinsic value comes from its special role in the ecosystem. Unlike the standard L1 model where network tokens gain value by selling block space, TAO's value is tied to the AI ​​services it supports. As the influence and utility of these services increase, so does the demand for TAO.

Holding TAO provides access to a range of interconnected digital resources, including data, bandwidth, and intelligence generated and verified by network participants. TAO's value is not based solely on speculation or scarcity, but is more deeply rooted in its actual contribution and utility in the Bittensor network.

However, maintaining this cycle of creation and reward is not static. Although miners and validators provide valuable intelligence to the network and are rewarded with TAO tokens, they may also have an incentive to sell tokens to cover expenses, similar to Bitcoin miners.