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💥 Covenant AI exits Bittensor, dumps TAO and sparks drama
Major drama unfolding around $TAO.
Covenant AI, the team behind several Bittensor subnets (SN3, SN81, SN39), announced they’re leaving the ecosystem and publicly accused Bittensor founder Const of centralized control.
Key claims:
➡️ Emissions to Covenant subnets were suspended
➡️ Moderation rights over their own channels were removed
➡️ Their subnet infrastructure was deprecated without consent
➡️ Token sales were allegedly used as pressure during conflict
➡️ Governance described as “decentralization theatre” with effective control still in one hand
At the same time, the team exited their position.
37,000 TAO (~$10M) sold.
Price dropped from $340 to $275.
Covenant AI and its trained LLM were one of the main drivers behind TAO’s recent rally, especially after being mentioned by NVIDIA’s CEO.