TAO Halving Impact: What Changed in Mid-December?

The Open Tensor network completed its first halving event in mid-December 2025, marking a significant milestone for the project. The mechanics were straightforward but impactful: daily TAO emissions got cut exactly in half, dropping from 7,200 to 3,600 tokens per day.

On the inflation side, the annual rate tightened considerably—moving from 26% down to 13%. That's substantial supply pressure relief, which matters for long-term token economics.

Now here's where it gets interesting. The market's reaction split into two camps. Bulls point to the reduced supply dynamics and tighter emission schedule as catalysts for potential appreciation. Bears, meanwhile, raise questions about liquidity impact and whether the network's adoption can keep pace with tighter token supply.

Both perspectives deserve serious consideration. The halving fundamentally altered TAO's inflation trajectory, but execution depends on what happens next—ecosystem development, validator adoption, and real usage metrics will determine whether this was a turning point or just another on-chain event.