TAO's economic model follows a similar scarcity principle to Bitcoin. The protocol enforces a hard cap: total TAO supply will never exceed 21 million tokens. To maintain this limitation, the network implements periodic halving events that reduce block rewards over time. This deflationary mechanism ensures long-term scarcity and gives the token predictable supply dynamics. Just as Bitcoin's fixed supply creates digital scarcity, TAO's design prioritizes sustainable tokenomics through programmed supply constraints.