Key Highlights
- TAO experienced an 18% price decline following Covenant AI’s departure from the Bittensor ecosystem
- Sam Dare, Covenant AI’s founder, leveled accusations against Jacob Steeves, Bittensor’s co-founder, regarding centralized governance
- Claims include halted emissions, removal of moderation privileges, and deprecated subnet infrastructure
- The token trades between $263–$292, positioned beneath its 200-day moving average, eyeing $250 as critical support
- Open interest in futures contracts decreased by approximately 1% to $392.59 million, with significant liquidations across major exchanges
Bittensor’s native TAO token experienced a dramatic decline exceeding 18% within a 24-hour period on April 10, 2026, completely wiping out gains from a previous rally that had surpassed 100%. This sharp downturn followed Covenant AI’s public declaration of its departure from the Bittensor ecosystem.
As one of the platform’s most significant contributors, Covenant AI managed three critical subnets: Templar (SN3), Basilica (SN39), and Grail (SN81), establishing itself as a cornerstone participant within the protocol.
In a scathing public declaration, Sam Dare, who founded Covenant AI, directly challenged Bittensor co-founder Jacob Steeves, claiming the network operates under centralized authority disguised as decentralized infrastructure.
“The Bittensor network functions through a triumvirate arrangement—three key figures controlling the multisig mechanism for protocol updates, marketed to users as distributed authority. This characterization is misleading. What we’re witnessing is performative decentralization,” Dare stated.
Dare’s accusations included multiple serious allegations: emission suspensions targeting Covenant’s subnet operations, revocation of moderation authority across community platforms, unilateral deprecation of subnet systems, and calculated token liquidations designed to exert financial leverage.
According to Dare, Steeves “exercises complete authority over the triumvirate structure, actively opposes any substantive delegation of power, and implements protocol modifications at will, circumventing established procedures and bypassing collective agreement.”
Complete TAO Token Liquidation by Covenant AI Leader
Dare proceeded to liquidate his complete subnet portfolio, offloading over 37,000 TAO tokens from his personal wallet, verified through on-chain analytics provided by taosats. This substantial sell-off contributed immediate downward momentum on the token’s valuation.
While exiting the Bittensor network, Covenant AI confirmed its intention to maintain its research division, proprietary models, and ongoing development initiatives. The organization indicated forthcoming announcements regarding new ventures. “Permissionless, decentralized AI model training transcends any single platform—it represents a technological frontier our team remains committed to pioneering,” their official statement declared.
At press time, TAO was changing hands within the $263–$292 corridor. Throughout the 24-hour trading session, the token fluctuated between $262.51 and $341. Market activity surged dramatically, with volume increasing 156% during this timeframe.
Critical Price Levels Under Observation
Renowned market analyst Cheds Trading highlighted that TAO has breached its 200-day moving average and appears to be descending toward the 50-day moving average positioned at $250. The Relative Strength Index (RSI) registered a reading of 41, signaling possible continued bearish momentum.
The Covenant-72B artificial intelligence model developed by Covenant AI had served as a significant catalyst for TAO’s recent price appreciation. Following NVIDIA CEO Jensen Huang’s mention of the model during his appearance on the All-In Podcast, TAO witnessed explosive growth exceeding 90%.
Market intelligence from CoinGlass revealed that Bittensor futures open interest contracted by nearly 1% to $392.59 million in just sixty minutes. The most substantial selling pressure materialized on OKX, Gate, Bitget, Hyperliquid, and LBank platforms. Leading exchanges Binance and Bybit had not reflected comparable adjustments at the time of analysis.
TAO currently maintains a price level around $263 with futures market open interest standing at $392.59 million in the aftermath of Covenant AI’s network departure.
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