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Apr 10, 2026

Bittensor Co-Founder Faces Exodus of Major Builder Over Decentralization Concerns, TAO Drops 18%

Covenant AI, a leading subnet operator, publicly exited Bittensor citing 'decentralization theatre' and alleging punitive actions from co-founder Jacob Steeves. The TAO token fell 18% following the announcement, with Steeves denying the allegations.

Apr 10, 2026·5 sources
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Top claims

  • ▪TAO token holders saw their holdings lose 18% of value within 24 hours of the Covenant AI announcement
  • ▪TAO faces a potential 45% decline based on fractal setups that projected deeper downside targets.
  • ▪TAO is down about 64% from its all-time high of $757 from May 2024.

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Decentralization

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