Bittensor’s Co-Founder Apologizes As 15% TAO Crash And Governance Crisis Follow Covenant AI Exit
The post Bittensor’s Co-Founder Apologizes As 15% TAO Crash And Governance Crisis Follow Covenant AI Exit appeared on BitcoinEthereumNews.com.
Covenant AI sparked the conversation when it announced its departure from Bittensor this week. This, resulting in a massive downward trend for $TAO, falling more than 15% after the announcement, showing a rapid decline in confidence and increased uncertainty. https://t.co/IdB9DPr5u0 — const (@const_reborn) April 11, 2026 Co-Founder Apologizes as Covenant AI Tensions Escalate Following the ongoing crisis, the co-founder of Bittensor has written an apology to the community for what happened. The statement acknowledged the financial losses suffered by investors and the loss of trust in the ecosystem. The co-founder said most of the damage that went down ended up being caused by Samuel Dare himself, saying it was destructive to the protocol and its key stakeholders. And that made it very personal, a betrayal not just to the project but also to the larger vision they had shared that guided their collaboration. On its humanistic level, the statement carried a burden of reflection, an acknowledgment of the physical and financial cost to users who had put their trust in the ecosystem. The apology was aimed at those who had lost both money and faith in the company during the upheaval. In the face of this late-tragedy, however, the co-founder according to his records found it sufficient simply not to respond in-kind, casting doubt over whether to pursue retribution and opening discussion on how best to move past the disaster. The Debate Over Decentralization Takes Center Stage This situation has rekindled an important conversation among the crypto and AI communities: how decentralized are decentralized systems, in reality? The allegations brought forward by Covenant AI imply that governance within the network may be far more centralized than originally intended. The outgoing chief justice admitted this week that he warned the prime minister against “presidential decisions” during his last year in office,…
Filed under: News - @ April 12, 2026 9:26 am