Bittensor subnet developer Covenant AI announced its departure from the decentralized AI network, criticizing Bittensor's centralized governance structure. Founder Sam Dare stated that Bittensor's governance has not been effectively decentralized and that Jacob Steeves exercises unilateral control over the Triumvirate, calling it “decentralization theatre”.
Covenant AI's Reasons for Leaving Bittensor
Covenant AI claimed that subnet emissions were suspended, moderation powers were restricted, and economic pressure was applied through token sales. These claims cast a shadow on Bittensor's promised full decentralization principle. TAO detailed analysis for details, check here.
Source: Covenant AI
Jacob Steeves' Defense and Response to Claims
Steeves denied the claims, arguing that he cannot suspend subnet emissions, has no more powers than normal TAO holders, and that token sales are standard market transactions. Although he temporarily removed moderation powers, he stated that he has restored them. Bittensor had previously been praised by Nvidia CEO Jensen Huang.
Source: Const
TAO/USD, 1-week chart. Source: CoinMarketCap
TAO Price and Technical Analysis: Current Situation
The TAO token experienced approximately 18% drop in the last 24 hours after the event, with trading volume reaching the highest level since December 2024. According to current data, price $241.48, 24h change -%2.05. RSI 40.53 (neutral-oversold), trend downward, Supertrend bearish. EMA 20: resistance above $261.20.
- Supports: S1 $234.39 (Strong, %74 score), S2 $193.09 (Strong, %67 score)
- Resistances: R1 $249.98 (Strong, %66 score), R2 $267.73 (Strong, %66 score)
TAO futures for details, click here. In the short term, S1 support may be tested.
Source: Ardi