Bittensor is an open-source protocol that tokenizes machine-learning model contributions on a decentralized peer-to-peer network. Validators and servers stake TAO tokens to join the network. Peers exchange “challenges” and rank one another’s responses via a blockchain consensus mechanism. Models providing higher-value embeddings gain stake and earn TAO rewards; low-value participants lose influence. TAO thus catalyzes a global market for AI compute, encouraging continual model improvement. Market participants can also use TAO to access network-wide inference services, paying for queries in native tokens.

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