Covenant AI has officially announced its exit from the Bittensor network, raising concerns regarding the platform’s governance structure and level of decentralization. According to statements from the team, they believe the current system may not fully represent a truly distributed model, which influenced their decision to step away from further development within the ecosystem. In response, Bittensor’s founder has publicly denied these claims, highlighting a difference in perspectives between both sides. Following the news, the TAO token experienced a noticeable decline, reflecting short-term market sensitivity to project developments. As discussions continue, this situation brings renewed attention to the importance of transparency and governance in decentralized AI networks.