Bittensor just got called out by one of its own subnet teams

Covenant AI, the team running Subnet 3 on the Bittensor network, announced a full exit on April 9 and published a statement that hit harder than most in this space ever do. They did not just leave. They named names.

Their core claim is that Jacob Steeves, known as Const, holds effective unilateral control over a network that markets itself as decentralized. They described the structure as "decentralization theatre" and said the promise that no single entity controls Bittensor is, in their words, a lie.

What backs the allegation is not just words. They say emissions to their subnets were suspended, their moderation access to their own community channels was removed, and token sales were used as direct economic pressure during disputes. That last point is significant because it describes governance by financial coercion, not protocol.

The market responded fast. TAO was trading around $337 before the announcement. Covenant AI sold roughly 37,000 TAO worth over $10 million on-chain, and the price dropped to an intraday low of $254.07 before closing at $268, down 16.87% on April 10.

What makes this different from typical drama is the specificity. Most exit statements are vague. This one described exact mechanisms of control and timed the on-chain sell to make the point impossible to ignore.

Whether the allegations hold up is a separate question. But the damage to Bittensor's decentralization narrative is already done.

#Bittensor #TAO #GateSquareAprilPostingChallenge