Analyst Backs Bittensor (TAO) as a Cleaner AI Play Over Internet Computer (ICP), Citing Upcoming Issuance Cut

Analysts are comparing two leading AI-focused cryptocurrencies, Bittensor (TAO) and Internet Computer (ICP), with one prominent voice arguing TAO presents a more direct and timely investment opportunity. The analysis, shared by Dami-Defi, hinges on Bittensor's upcoming issuance cut in December 2025, its steady liquidity, and a market cap that suggests room for growth if the AI narrative regains strength.

Dami-Defi's comparison highlights Bittensor's unique architecture as an open marketplace for machine learning models, where subnets compete for TAO rewards based on the quality of their AI output. He argues this creates a "cleaner setup" and a "tighter feedback loop" for traders, as TAO price action often mirrors subnet expansion and network activity. This, combined with the impending supply tightening, is seen as giving Bittensor a more immediate catalyst.

In contrast, Internet Computer (ICP) is acknowledged for its ambitious vision of a full Layer 1 blockchain designed to host data and services directly on-chain, moving away from traditional cloud hosting. However, analysts note its challenge lies in its longer adoption cycle. With a larger market cap and a history of struggling to revisit previous price highs, ICP's path to significant price recovery is seen as dependent on visible, scaled usage and developer traction, requiring more patience from investors.

Concurrently, the Bittensor ecosystem is undergoing a significant internal shift with the implementation of "TAO flow," a new emission model. As explained by advocates Tao Ouτsider and Andy ττ, this upgrade fundamentally changes how subnets earn TAO. Instead of price-based signals, emissions now follow a single rule: consistent net TAO inflow. Subnets that fail to attract stake and activity see their emissions drop to zero, a mechanism described not as a bug but as a deliberate, stricter rule to foster a healthier, more competitive ecosystem.

This new model is designed to punish stagnation, close manipulation loopholes, and reward only subnets that demonstrate sustainable value and participation. While causing short-term discomfort for some projects, proponents argue it strengthens Bittensor's long-term fundamentals by forcing builders to "build something people want."