Trending Now - Bittensor's TAO Token Plummets 20% After Covenant AI Departure
WHO:
NewsBTC - Covenant AI operated three subnets: Templar (SN3), Basilica (SN39), and Grail (SN81).
NewsBTC - Sam Dare claimed that Bittensor's founder, Jacob Steeves, also known as Const, maintains effective control over the network's governance structure.
NewsBTC - Covenant AI, a subnet developer, and its founder, Sam Dare.
NewsBTC - Jacob Steeves, co-founder of Bittensor.
Cointelegraph - Bittensor, an artificial intelligence network.
WHAT:
NewsBTC - TAO token price dropped to a multi-week low of $250 before recovering to around $260, marking a 25% decline.
NewsBTC - Analyst Ardi noted that TAO's sell volume hit its highest level since December 2024, 24 hours before Covenant AI's announcement.
NewsBTC - Covenant AI announced its exit from Bittensor, citing governance disputes and decentralization concerns.
NewsBTC - TAO token price dropped 25% from approximately $340 to a low of $250 before recovering to around $260.
Cointelegraph - TAO token dropped 18% following Covenant AI's announcement.
WHERE:
NewsBTC - The events pertain to the Bittensor network, which operates in the decentralized artificial intelligence space.
WHEN:
NewsBTC - Covenant AI's announcement was made on Friday, April 8th, 2026.
NewsBTC - The sell volume for TAO hit its highest level since December 2024, 24 hours before the announcement.
WHY:
NewsBTC - Sam Dare stated that Bittensor has “centralized control with decentralized branding,” which contradicts its claims of being decentralized and permissionless.
NewsBTC - Sam Dare stated that Covenant AI could not continue building on Bittensor due to the network's alleged centralized control, which contradicted its claims of being decentralized and permissionless.
NewsBTC - Dare described Bittensor as a “decentralized theater” and claimed that the decentralization problem “runs deeper than any single incident.”
HOW:
NewsBTC - Dare alleged that Steeves applied “direct economic pressure” through strategically timed token sales against Covenant AI's operations.
NewsBTC - Dare alleged that Jacob Steeves took actions against Covenant AI, including suspending emissions to its subnets and overriding moderation capabilities.
NewsBTC - Steeves responded to the allegations by stating he does not have the ability to suspend emissions and that he sold some of his alpha holdings on the subnets due to them not running.
(UPDATED April 11, 2026 09:09 UTC)
Covenant AI has been operating three subnets: Templar, Basilica, and Grail, while Sam Dare has raised concerns about Bittensor's governance, claiming that its founder, Jacob Steeves, maintains effective control over the network. The price of the TAO token recently dropped to a multi-week low of $250 before recovering to around $260, reflecting a 25% decline, with sell volume reaching its highest level since December 20th24 just before Covenant AI's announcement. Dare further alleged that Steeves exerted "direct economic pressure" through strategically timed token sales, which he argues contradicts Bittensor's claims of being decentralized and permissionless.
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(UPDATED April 11, 2026 07:17 UTC)
Covenant AI announced its exit from the Bittensor network on Wednesday, citing governance disputes and concerns over decentralization, which led to a significant drop in the TAO token price. Following the announcement, the TAO token fell by 25% from around $340 to a low of $250 before recovering slightly to approximately $260, marking the highest sell volume for the token since December 20th24. Sam Dare, the founder of Covenant AI, accused Jacob Steeves of taking actions against their subnet, while Steeves countered that he lacked the ability to suspend emissions and had sold some of his holdings due to operational issues.