Bittensor $TAO Crashes 18% After Covenant AI Exit: Founder Dumps $10M In Shocking Rugpull Claim

Covenant AI Founder Sam Dare Officially Quit Bittensor Today, Accusing Founder Jacob Steeves (Const) Of Running "Decentralization Theatre."

His Core Claim:
Bittensor's 3-Person Governance Multisig Is Controlled By One Man. Const Can Suspend Subnet Emissions, Strip Community Rights, And Deprecate Projects Unilaterally, All Without Consensus.

What Covenant Built:
Covenant-72B: The Largest Decentralized LLM Pre-Training In History. 72B Parameters, 70+ Contributors, Commodity Hardware. Praised By Nvidia's Jensen Huang And Anthropic's Jack Clark. Drove TAO's 90% March Rally.

Punitive Actions Covenant Alleges:
🔸 Emissions To Their Subnets Suspended
🔸 Moderation Rights Over Their Own Channels Removed
🔸 Subnet Infrastructure Deprecated Without Process
🔸 Coercive Token Sales Timed To Conflicts

Market Impact:
🔻 TAO: $351 → $263 (-29% in 48H)
🔻 TAO: $341 → $263 (-27% in 24H)
🔻 Futures OI Tanking Across Major Exchanges
🔻 Sam Dare Sold His Entire 37,000 TAO (~$10M): Community Split On Rugpull Vs Justified Exit

Lesson: Always Question "Decentralization" Claims. Check The Multisig. Check Who Signs Upgrades. Branding Is Cheap, On-Chain Proof Is Not.