BitTensor's key ecosystem partners accused it of centralization, causing the TAO token to plummet nearly 19% in a single day.

Covenant AI, a core participant in the decentralized AI network BitTensor, announced its withdrawal from the network, accusing founder Jacob Steeves of unilaterally suspending subnet incentives, interfering with community space operations, and exerting pressure through token sales, effectively establishing "centralized control." Steeves denies having the authority to suspend subnet block rewards, instead claiming that Covenant is deleting posts and shutting down community channels. Covenant previously operated three subnets and spearheaded the "permissionless" training of the Covenant-72B model, an achievement previously mentioned in the podcast All-In. Affected by this dispute, BitTensor's native token TAO fell approximately 18.5% in 24 hours, retreating from its previous high, and has cumulatively fallen approximately 64% from its all-time high in May 2024.