The network that halves its rewards and lets the market say where they go

On November 6, 2025 the network’s token closed at $392.20 according to our price archive. As of the last update to this page the same token is worth $233.

The cut, and why it has no date

Here, though, the cut is tied to a threshold rather than to a number of blocks: it kicks in when the tokens in circulation reach 10.5 million. Since the pace of issuance isn’t constant, the date keeps moving. When the source was written there were about 47 days to go, and the countdown kept shifting.

For the people running the network, the practical consequence is brutal. Anyone covering their costs today by selling the rewards will have to sell twice as many to earn the same. And since the money flowing into the internal markets halves too, selling costs more, because there’s less depth on the other side.

Who decides where the rewards go

Nobody sets the price of those internal tokens. It comes out of the ratio between the two reserves of the automated market where they trade. So the more people buy a team’s token, the higher its price, the more rewards reach that team, the deeper its market gets and the more worthwhile it is to work there. And the loop starts again.

In reverse it works exactly the same way, and that’s what makes the event interesting. A team with no demand watches its token fall, gets fewer rewards, sees its market thin out, and the people working on it leave. With the rewards halved, that process speeds up: the marginal teams stop covering the costs of whoever supplies the computing power.

The two ways to be in, and why one of them shrinks

The second is a single team: you buy that team’s internal token, deposit it there, and take only what that team produces. It pays more and it can go to zero, because if the team dies, whatever you put into it dies too. These are really two different trades, each with its own risk.

The part almost nobody tells you is that the first position shrinks on its own, by design. The share that goes to the center depends on how much capital sits there against the internal tokens in circulation. Those keep growing even after the cut, just more slowly. The denominator grows and the share falls, so whoever sits still at the center earns less and less without doing anything wrong.

Depositing at the center of the network gives a share of what every team produces, with nothing to choose, but that share shrinks structurally because the internal tokens in circulation keep growing. Depositing on a single team pays more and concentrates the risk: if the team fails, what was put there is lost.

What separates a team that survives from one that disappears

The third is the depth of the internal market. Below 100 thousand units of reserve a market is thin and moves on very little, and whoever buys or sells pays a punishing spread. After the cut, with half the money coming in, a small market takes years to become a big one, so the depth that’s already there is close to all there will ever be.

The fourth is knowing who’s behind it, and morality has little to do with it. While the marginal teams are shutting down, a team run by anonymous people with no public updates has nobody to answer to when it stops working, and it vanishes without warning. Four or five names were going around at the time, all with announced products and none with mature ones.

The criteria: a real product in testing or shipping; a mechanism that brings the revenue back inside by buying back the internal token; an internal market with at least 100 thousand units of reserve, below which the price spread turns punishing; and a public working team, with updates you can check.

The real risks, and what to watch to understand

The third is time: if the teams don’t ship products within a year of the cut, the story deflates and the capital goes elsewhere, because this market is impatient by nature. The fourth is that the network is hard to use. As long as it stays hard, real demand from people buying a product rather than a token won’t arrive.

From the outside there are five things to watch, all of them bookkeeping. Where the big deposits move. Whether the internal markets’ reserves grow or drain. Which teams climb the rewards table. How many new teams register, since every registration burns tokens and takes them out of circulation. And when the yield on individual teams steadily beats the yield at the center. Bitcoin closed that day at $101,346 and this network’s token at $392.20, and today it’s worth $233.

Put bluntly: halving the rewards is an exam. It forces every working team to prove it’s good for something, and the ones that aren’t stop covering their costs.