Covenant AI exit sparks TAO drop, decentralization debate
6.6 Markets Covenant AI left Bittensor over centralization concerns, accusing its founder of unilateral control. The exit triggered a 15% drop in TAO, raising doubts about Bittensor's decentralization.
Covenant AI has exited the Bittensor network, citing concerns over centralization and governance. The team accused Bittensor's founder, Jacob Steeves, of exercising unilateral control, including suspending emissions to Covenant AI's subnets, removing their moderation rights, deprecating subnet infrastructure, and exerting economic pressure through large-scale token sales. These actions were described as contradicting Bittensor's decentralization claims, with governance labeled as "decentralization theater." The departure of Covenant AI, a key subnet operator and contributor to decentralized large language model development, triggered a sharp drop in Bittensor's TAO token, which fell over 15% and became the worst-performing top-100 cryptocurrency by market cap. This move has raised significant questions about the true decentralization of Bittensor's governance and caused notable market volatility. Covenant AI plans to continue its work independently and hinted at future projects.
