Covenant AI Leaves Bittensor Amid Decentralization Concerns, TAO Drops 18%
Covenant AI exited the Bittensor network, alleging centralized governance, causing TAO token prices to fall by 18%.Summary
Subnet developer Covenant AI has officially departed from the Bittensor network, with founder Sam Dare labeling the project as "decentralization theatre." Dare alleges that Bittensor founder Jacob Steeves maintains excessive, unilateral control over the network, effectively bypassing consensus-based governance. In response, Steeves has denied these accusations, asserting that he holds no special privileges and that his recent token sales were standard market activity.
The public dispute has significantly impacted market sentiment, with Bittensor’s TAO token dropping approximately 18% following the announcement. Analysts have noted a spike in sell volume preceding the news, suggesting a calculated exit. The conflict highlights broader industry concerns regarding whether decentralized protocols can truly protect developers from the infrastructure they build upon, or if their decentralization remains largely cosmetic.
(Source：Cointelegraph)