What caused Covenant AI to leave Bittensor?

Governance gripes: they accused founder Jacob Steeves of unilateral control, suspending emissions and wielding economic pressure, calling it 'decentralization theatre.'

Why did TAO token drop 18%?

The exit news sparked panic selling, with volume spiking pre-announcement—suggesting insiders timed it amid the dispute.

Is Bittensor still a good bet for DeAI?

Depends on governance fixes. Builders need proof of power transfer; without it, talent drain looms large.

🔗 Crypto & Blockchain

Covenant AI Ditches Bittensor: 'Decentralization Theatre' Exposed as TAO Crashes 18%

A top Bittensor developer just walked out, torching the network's decentralization claims in a fiery X post. With TAO down 18%, this drama exposes the cracks in decentralized AI's shiny facade.

theAIcatchup Apr 10, 2026 4 min read

⚡ Key Takeaways

Covenant AI exits Bittensor, accusing it of 'decentralization theatre' controlled by founder Jacob Steeves. 𝕏
TAO token crashes 18% amid governance drama and pre-announcement sell volume spikes. 𝕏
Exposes risks in DeAI: central control can weaponize against builders, threatening the vision. 𝕏

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theAIcatchup

Markets. Money. Innovation.

#Bittensor #Covenant AI #TAO token #decentralization governance #decentralized AI

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Originally reported by Cointelegraph

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