Overview
- TAO fell more than 15% to about $284 after the announcement, with later trades near $292, according to CoinGecko.
- Covenant AI alleged founder Jacob Steeves suspended emissions to its subnets, removed its channel moderation, deprecated its infrastructure, and timed large token sales during disputes.
- Bittensor’s founder countered that the changes will produce the first subnets that run headless as true commodities.
- The team had previously built Covenant‑72B across 70+ distributed nodes with Apache‑licensed weights and a 67.1 MMLU score, a milestone that helped drive TAO’s roughly 90% March rally.
- CoinCentral reported Covenant operated three major subnets and that founder Sam Dare sold about 37,000 TAO, adding direct selling pressure to the token.