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CryptoUpdated×2•Originally published 12 April 2026•Updated 13 April 2026•

1 min read

Bittensor Crisis Deepens: 'Decentralization Theater' Claims as TAO Slumps Over 30%

Two golden screens display "TAO" with prices and arrows. The left shows $285.50 up, the right shows $199.90 down. Electrical sparks connect them.

Key Facts

1Bittensor co-founder Jacob Steeves accused former colleague Samuel Dare of "deep betrayal" after Covenant AI's exit from the project.

2Dare's exit and the ensuing controversy triggered a 25% crash in the price of TAO.

about 2 months ago

Version History

2 additional sources confirmed this story

Version 2about 2 months ago

What changed: Updated to reflect the price drop exceeding 30%, adding developer allegations of 'decentralization theater' and technical warnings of a potential 45% dip.

Version 1about 2 months ago

What changed: Added information about Bittensor's announcement of a recovery plan to rebuild investor confidence, which was drafted by Samuel Dare, the co-founder whose departure triggered the crisis.

The crisis surrounding the Bittensor decentralized AI project has intensified as the TAO token price plummeted by more than 30% from its weekly high. Exiting developers have further damaged the project's reputation by describing its governance structure as "decentralization theater," raising serious doubts about its integrity. New allegations have also surfaced against co-founder Jacob Steeves, accusing him of taking punitive actions against dissenters within the network. These developments follow a public fallout where Steeves accused former colleague Samuel Dare of betrayal after the exit of Covenant AI. Technical analysis utilizing fractal setups now warns of a potential 45% price correction if the downward momentum continues. This shift from personal disputes to systemic governance concerns highlights significant risks for TAO investors and the project's long-term viability.