Bittensor Price Drops 20% Amid Governance Dispute with Departing Research Group

Bittensor (TAO) suffered a 20% price drop in one day due to a governance dispute. The departure of Covenant AI, a key research group building decentralized AI models, was cited as the reason for the sell-off.

Covenant AI accused co-founder Jacob Steeves of holding too much power over Bittensor's governance. The group claimed that its subnet emissions were suspended, permissions revoked, and protocol changes made without input.

The token's price briefly dipped to $253 before recovering slightly. Covenant AI reportedly sold 37,000 TAO worth over $10 million alongside their departure.