Covenant AI exits the Bittensor ecosystem

Covenant AI, the creator of the Covenant-72B model and a major developer of subnets on the Bittensor platform, announced on Thursday its departure from the AI-focused ecosystem.

Covenant AI founder Sam Day explained the decision as stemming from a lack of genuine decentralization within the network. According to him, Bittensor's governance contradicts its stated commitment to decentralization: co-founder Jacob Steves effectively controls the protocol despite the presence of multisignature arrangements.

According to Day, this is "theatrical" decentralization: Steves retains influence over the triumvirate, blocks significant power transfers, and unilaterally makes changes whenever he deems necessary.

The TAO token, which had recently been showing growth, corrected by approximately 20% following the announcement.

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