According to TechFlow, Grayscale, a US digital currency asset management company, released a new report introducing the Bittensor project (TAO). The report pointed out that Bittensor stands at the forefront of two transformative technological trends, blockchain and artificial intelligence, and aims to develop advanced AI software using unlicensed public blockchains and economic incentives. The Bittensor network consists of multiple subnets, each of which performs specific machine learning tasks, such as AI image generation, music generation, and deep fake detection.

Bittensor incentivizes open collaboration in AI development through its native token TAO, which is expected to democratize AI ownership and make decision-making transparent. Currently, TAO's supply schedule is exactly the same as Bitcoin's supply schedule, with a maximum supply of 21 million, which is halved approximately every four years. Bittensor's first halving event is expected to occur in August 2025. TAO tokens account for 12% of the Grayscale AI space.

Grayscale believes that Bittensor represents a new and unique use case in the cryptocurrency space and has the potential to play an important role in the early stages of AI development. However, the project still faces challenges in network adoption, decentralization, and incentive mechanism implementation.

Earlier news revealed that Grayscale's decentralized AI fund is now open to qualified investors and includes five assets: FIL, NEAR, RNDR, LPT and TAO.