TAO’s price chart just took a nosedive — straight off a cliff, 18% in 24 hours, like a rocket booster detaching mid-flight.
And it’s not some random crypto wobble. No, this is founder drama exploding in public, the kind that makes you wonder if decentralized AI was ever more than a shiny slogan slapped on a blockchain.
Covenant AI, the subnet wizards who trained a massive 72B model across everyday internet rigs — no billion-dollar GPU farms needed — just announced they’re out. Gone. Packing up their three subnets and waving goodbye to BitTensor.
What Sparked the BitTensor Blowup?
Sam Dare, Covenant’s founder, didn’t mince words on X. He accused Jacob Steeves, BitTensor’s creator, of pulling centralized strings behind the ‘decentralized’ curtain.
“When a single actor can suspend a subnet’s emissions, override an owner’s authority over their own community spaces, publicly deprecate projects without process, and use token sales as a coercive mechanism to compel compliance, that is not decentralization. It is centralized control with decentralized branding.”
Ouch. Emissions? That’s how TAO tokens flow to miners and validators hustling in these AI subnets. Suspend them, and you’re choking the lifeblood. Dare claims Steeves did just that to Covenant, plus meddled in their community chats.
Steeves fired back: “I do not have the ability to suspend emissions.” He flipped the script, saying Dare was the one nuking posts and channels.
But markets don’t care about he-said-she-said. They vote with wallets. TAO? Down to $272, wiping out gains from that All-In Podcast hype — remember Chamath grilling Nvidia’s Jensen Huang about Covenant-72B? Token jumped 50% then. Now? Back to square one, 64% off its $757 peak.
Here’s my take, as someone who’s watched AI platforms rise like digital phoenixes: this mess echoes the early internet’s Wild West. Think 1990s browser wars — Netscape vs. Microsoft, where one company’s grip threatened the open web dream. BitTensor’s spat? It’s that tension, scaled to blockchain AI. And my bold call? This fracture forces real decentralization. Without it, TAO’s just another VC pet project dressed in crypto clothes. Expect shakeouts, but a purer network emerges — stronger, like Ethereum post-DAO hack.
Short para. Boom.
Why Does BitTensor’s Decentralization Even Matter?
Zoom out. BitTensor pitches itself as AI’s killer app on blockchain: subnets as specialized markets — pre-training here (Templar SN3), compute there (Basilica SN39). Contributors earn TAO for smarts, not servers. Permissionless magic, right? Chamath hyped it to Jensen: train huge models on commodity hardware, crowdsource the future.
But if the founder can allegedly yank plugs? That’s not a platform shift. That’s a fiefdom. Covenant couldn’t stomach it — they told investors straight: “We cannot in good conscience continue to build on a network where the foundational claim… is contradicted by the reality.”
Deprecated subnets on Taostats confirm it. Covenant’s trio? Ghosts now.
Look, I’m all-in on AI as the new OS — protocols like BitTensor could democratize models, letting garage tinkerers rival OpenAI. Vivid analogy: imagine Uber, but for neurons. Drivers (validators) pick routes (tasks), earn fares (TAO). Founder as dictator? Kills the vibe.
And yet — here’s the wonder — drama like this accelerates evolution. Early Bitcoin had Satoshi’s shadow; it centralized at first. Painful forks birthed maturity. BitTensor? Same script. Steeves’ denials might hold water technically, but perception’s tanking TAO.
Can TAO Bounce Back from Covenant Chaos?
Price action screams no, for now. Erased podcast pumps. But long game?
BitTensor’s ecosystem? Still buzzing with 30+ subnets. TAO holders? Battle-tested degens who thrive on volatility. If Covenant forks their tech elsewhere — permissionless training’s too juicy — it sparks competition. Healthier for all.
Critique time: BitTensor’s PR spin (if any) smells like ‘trust the founder’ vibes. Classic crypto sleight — hype decentralization, centralize power. My prediction: by Q4, governance upgrades or council votes fix this, TAO retests $400. But ignore the noise? Risky.
Energy here: imagine subnets as neural neighborhoods, founder as overzealous mayor. Time to elect a council?
Wander a sec — Covenant’s 72B feat? Pure futurism. No datacenter overlords. That’s the dream clawing free from this mudfight.
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Frequently Asked Questions
What caused the TAO token plunge today?
Covenant AI’s exit from BitTensor, blasting founder Jacob Steeves for alleged centralized control — emissions suspended, communities overridden. TAO dropped 18% amid the X feud.
Is BitTensor really decentralized?
Debatable now. Subnets promise permissionless AI markets, but founder powers raise red flags. Covenant calls it ‘decentralized branding’ on central control.
Will BitTensor recover after Covenant leaves?
Likely yes, long-term. Drama exposes fixes needed; ecosystem’s young, volatile. Historical parallels suggest shakeouts strengthen protocols.
