๐ Bittensor ($TAO) is plummeting: down 27% amid the scandal
The ecosystem is shaken by a conflict between management and top developers. This is why the price went 'under the knife':
โ Departure of a key player
The Covenant AI team (creators of the notorious Covenant-72B model, praised even by the CEO of Nvidia) is officially leaving Bittensor. Their successes have largely driven the hype and growth of the token in recent months.
๐ฉ Accusations of dictatorship
The founder of Covenant AI dumped tokens worth $10 million and released the database:
False decentralization: The protocol is essentially controlled by one person โ co-founder Jacob Steves.
Censorship and pressure: 'Punitive measures' were applied against developers, emission of rewards was turned off, and control over the infrastructure was taken away.
๐ฐ Economic pressure
Accusations are being made that large token dumps coincided with moments of internal conflict, which seems like an attempt to exert pressure through price.
๐ฃ Reaction from Bittensor
Jacob Steves did not directly deny the accusations but announced a 'new era' and a change in the governance model of the network.
Outcome: Investor trust has been undermined, and the decentralization of the project is in serious doubt. We are observing volatility! ๐ฟ
Playing with developers, high risk of foundation collapse ๐
In all networks ๐ค