Bittensor’s TAO Struggles Following Key Team Exit
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While the wider cryptocurrency market experienced a growth of over 1.4% in the last 24 hours, Bittensor’s TAO token did not participate in this upswing.
Instead, TAO saw a noteworthy decline of more than 9%, making it the poorest performer among the top 100 cryptocurrencies based on market capitalization. As of the latest update, the token was priced at $292.
The downward trend was triggered by the announcement from Covenant AI, which indicated its departure from the Bittensor network. This entity had served as a major contributor, managing three subnets: Templar (SN3), Basilica (SN39), and Grail (SN81).
According to Sam Dare, the founder of Covenant AI, the group’s exit was motivated by concerns regarding the decentralization of Bittensor. He expressed that Jacob Steeves, a co-founder of Bittensor, was exerting centralized control over what is purportedly a decentralized network.
Covenant AI raised several specific allegations against Steeves, including the suspension of emissions to its subnets, the removal of moderation rights from its community channels, unilateral changes to its subnet infrastructure, and economic pressures through strategically timed token sales.
Dare remarked that it would be morally questionable for them to continue contributing to a network that claims to be decentralized while operating under centralized governance. He described Bittensor’s governance structure as misleadingly presented to the community as distributed.
The situation signifies a notable change in sentiment within the crypto community. Previously, Covenant AI’s Covenant-72B model had sparked a considerable rally for TAO following comments from NVIDIA CEO Jensen Huang, who mentioned it during a podcast appearance.
Despite the split from Bittensor, Covenant AI confirmed that it will maintain its research team and ongoing projects, signaling potential new initiatives on the horizon.
The organization’s commitment remains unchanged, with a focus on advancing decentralized, permissionless AI training independent of Bittensor’s capabilities.
The implications of this departure for governance discussions within the Bittensor community are still uncertain, and time will reveal what impact it will have.
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