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Covenant AI Says It Will Leave Bittensor Network and Challenges Governance

Covenant AI Says It Will Leave Bittensor Network and Challenges Governance

According to statements from Covenant AI and Jacob Steeves, the dispute over Bittensor’s governance and subnet operations triggered renewed scrutiny of decentralization claims as TAO fell sharply during the backlash.

TAO

Fact Check
The strongest lead is the traced primary-source URL, https://x.com/covenant_ai/status/2042380152831951300?s=20, which indicates that Odaily newsflash 476093 was derived from an official Covenant AI statement. That supports the existence of some official statement. However, because the X post could not be fetched, I could not directly confirm the quoted allegations about centralized control, suspended subnet emissions, revoked community control, or token selling pressure. The Block article URL also could not be fetched, though search snippets suggest a related report exists. Without validated access to the underlying statement or a fetched corroborating article, the specific claim remains unverified.
    Reference: 12
Summary

Covenant AI founder Sam Dare said the team is exiting Bittensor, calling the network’s decentralization a “theater” and alleging that founder Jacob Steeves retained effective control over governance, resisted authority transfers, and took punitive actions against Covenant AI’s subnets and community operations. Dare said those actions included suspending emissions, overriding moderation rights, publicly deprecating subnet infrastructure, and applying economic pressure through token sales. Steeves denied the claims, saying he does not have the ability to suspend emissions, that any emission changes reflected normal market activity after he sold alpha holdings in subnets that were not running and were on near-100% burn code, and that he only temporarily restricted Dare from deleting criticism in Discord channels before reinstating that ability. A Bittensor community member, Alex DRocks, backed Steeves’ account regarding deleted posts and channel deprecation. Amid the dispute, TAO fell about 25% from the $340 area to around $250 before rebounding toward $260, while analyst Ardi said sell volume had reached its highest level since December 2024 before the news became public.

Terms & Concepts
  • Bittensor: A blockchain-based network focused on decentralized artificial intelligence, where participants build, operate, and compete through incentive-driven subnets.
  • subnet: A distinct application-specific network segment within Bittensor, typically operated by teams contributing particular AI models, services, or infrastructure.
  • TAO: The native token of the Bittensor ecosystem, used for network incentives, valuation, and market trading.