Covenant AI Quits Bittensor, Accuses Key Figure of Faking Decentralization as TAO Falls More Than 17%

Bittensor is a decentralized network where miners, validators and subnet developers collaborate to train AI, while TAO is used for incentives and governance. Covenant AI previously operated major subnets including Templar, Basilica and Grail. Its departure directly undermines the network's central narrative that power is genuinely distributed.

On April 9, 2026, Covenant AI founder Sam Dare announced a complete exit, alleging that co-founder Jacob Steeves effectively controlled a three-person multisignature governance system and had previously suspended subnet revenue. TAO fell from $338 to $285 in two hours after the announcement, a decline of about 15%, and lost roughly 18% over 24 hours. Sell volume also reached its highest level since December 2024. Steeves denied the allegations.