Bittensor's Decentralization Premise Under Fire After Founder's Public Exit

The departure of Sam Dare, founder of Covenant AI, from Bittensor has sent shockwaves through the crypto and AI communities. In a public exit letter, Dare accused co-founder Jacob Steeves of running a decentralized network that only appears to be so, calling it 'decentralization theatre'. The accusations came after Covenant AI sold 37,000 TAO tokens worth approximately $10.2 million on the open market.

The price of TAO fell more than 20% following the sale, with over $10 million in long liquidations triggered. This has raised questions about the governance and control structure of Bittensor, which has been touted as a decentralized AI network. According to Dare's exit letter, Steeves had unilaterally suspended emissions to Covenant AI's subnets, cutting off their income.

The incident highlights concerns over the concentration of power within Bittensor's 'triumvirate' governance model. The Opentensor Foundation, which governs the network, has been accused of being controlled by Steeves and a minority group. This raises questions about the decentralization premise that underpins the investment case for Bittensor.