Covenant AI Leaves Bittensor Over Governance Issues, TAO Falls 18%

Covenant AI, a prominent developer on the Bittensor network, announced its departure from the decentralized artificial intelligence platform on April 10, 2026, citing concerns over centralized governance practices. The exit, led by founder Sam Dare, triggered an immediate 18 percent drop in Bittensor's native TAO token, erasing recent gains and raising questions about the network's operational integrity.

Covenant AI operated three key subnets on Bittensor: Templar (SN3), Basilica (SN39), and Grail (SN81), making it one of the platform's largest contributors. In a public statement on X, Dare accused Bittensor co-founder Jacob Steeves of exerting unilateral control despite the network's decentralized branding. "The entire premise of Bittensor, the promise that drew builders, miners, validators, and investors into this ecosystem, is that no single entity controls it," Dare wrote. "That promise is a lie."

Specific allegations included the suspension of token emissions to Covenant's subnets, the removal of the team's moderation privileges over community channels, the unilateral deprecation of their infrastructure, and the application of economic pressure through timed token sales....