Bittensor palava: Covenant AI commot, TAO drop 15% because dem talk say emissions/governance wahala
Covenant AI, di team wey build Covenant-72B model, talk say dem don comot for Bittensor and call the network “decentralization theatre.” Di announcement follow fresh accusations say Bittensor founder Jacob Steeves (“Const”) dey effectively control key governance as part of one “triumvirate” setup and him dey resist make power change hand.
Covenant AI claim say Steeves suspend emissions for their subnets, cut dem earnings, and use big TAO token sales as “economic pressure.” Steeves deny am, talk say he no fit directly suspend emissions and any emission changes na normal on-chain buy/sell activity; e also talk say moderation restrictions na temporary.
Price reaction quick. After dem exit, TAO drop more than 15% (inside 24 hours). Sell volume reportedly spike reach highest level since Dec 2024 before the announcement, and some analysts think say e dey look like planned execution.
Newer report bring another layer: one site wey dem call “Tao Papers” publish internal documents and on-chain forensics wey allege say between 2023–2026, Steeves-controlled infrastructure propose, first-sign and deploy 38 of 41 Bittensor upgrades, and other signers co-sign within minutes with no public discussion. Steeves point to future plan for “headless” subnets but e no directly address the emissions/governance-control claims.
For TAO traders, this na governance-and-alignment shock. Expect higher volatility as narrative risk and worry about token sell-pressure compete with any hopes for rebuilding/roadmap.
Bearish
TAO drop sharp (15%+) plus di big increase for sell volume before announcement show say di narrative of "governance trust/issuance blocked/potential one-side control" don trigger short-term risk pricing. Whether Steeves denial strong or not, Covenant AI waka itself go deepen investors worry about AI token governance and cash-flow safety.
For short term, wahala about emissions, subnet permissions and big TAO sell pressure go keep trading active and volatile; if more projects dash or on-chain investigations expand, fit continue to press sentiment down.
For long term, if solutions like "headless" subnets really fit improve governance transparency and reduce suspicious control concentration, market fit slowly heal. But till evidence and narrative risk clear, people go avoid risk, so price impact on TAO lean bearish.