Covenant AI exits Bittensor over ‘decentralization theatre,’ TAO drops 18%

Covenant AI said it was leaving Bittensor due to its overreaching control on subnets and their large-scale TAO token sales, but Bittensor’s founder denied all allegations.

Bittensor subnet developer Covenant AI said Friday that it is leaving the decentralized artificial intelligence network, accusing Bittensor of operating under a concentrated governance structure that undermines its decentralization claims.

In a Friday post on X, Covenant AI founder Sam Dare said the team could no longer build on or raise for Bittensor because its governance was not meaningfully distributed.

“It is decentralization theatre,” Dare said. “Jacob Steeves maintains effective control over the triumvirate, resists any meaningful transfer of authority, and deploys changes unilaterally whenever he chooses, without process and without consensus.”

Read more