Say the quiet part out loud: If each subnet token is pegged to $TAO, their value is directly tied to $TAO. As $TAO's value rises, so do subnet tokens. With 64 subnets & growing, each with 21M tokens, the total token count skyrockets, but the pegging to $TAO creates a layered scarcity.

Here’s the key: $TAO remains the scarce backbone. Subnet tokens rely on $TAO’s value, while $TAO’s supply is needed for liquidity and exchange. This drives demand across both levels, $TAO and subnet tokens, creating a compounding scarcity effect.

Subnets battle for emissions, Holders boost subnet success, miners restake for rewards, and validators balance influence, driving competition that strengthens thier tokens strength. 

It’s scarcity on scarcity, fueling demand at every layer of the ecosystem. A truly unique dynamic for Bittensor! But wait, the halvenings decrease the inflation rate and increase scarcity, It’s scarcity, on scarcity, on scarcity!