2026-04-10 08:28:23

🩸 Bittensor (#TAO) -27% at the moment…

Reason: Covenant AI, one of the key developers in the ecosystem and the creator of Covenant-72B, is leaving Bittensor.

An early model from Covenant AI received public recognition from Nvidia's CEO and a mention from the co-founder of Anthropic. This hype was one of the reasons for TAO's rapid growth in recent months.

Covenant AI's founder sold TAO at $10m and announced the lack of decentralization in Bittensor – co-founder Jacob Steves controls the protocol, despite the presence of multi-signatures.

What happened:
▪ Covenant claims that "punitive measures" were taken against them.
▪ Their reward emissions were disabled.
▪ They were deprived of control over the community.
▪ Essentially, their infrastructure was "shut down."

Additionally, there are accusations of economic pressure – allegedly, large token sales coincided with moments of conflict. The Bittensor founder did not deny the accusations but hinted at a "new era" of the network with a new type of governance.

TAO-18,68%

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OnlyHoldSpotAssetsAndFocusOn

· 3h ago

Tao funded the covenant, this sneaky wolf. Strategies should be developed to ensure that the AI outputs produced give Bittensor half of the shares. Every token holder should have shares, dividends, and equity. It can't be a matter of coming and going at will. Each subnet project, which takes retail investors' money, must bear corresponding obligations. It should be responsible to every stockholder, just like a company is responsible to its shareholders.

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