Covenant AI has confirmed its departure from the Bittensor network, pointing to growing concerns about centralization and internal control within the ecosystem. This relocation is after an upsurge in tension that cast grave doubts on the manner in which key decisions are intended and executed throughout the network. In a statement posted by Covenant AI on X, the departure is indicative of more underlying governance problems, which are quite contrary to its vision of decentralized AI development in the long term.
The group clarified that its main vision is to allow decentralized and permissionless training of AI at scale among independent contributors. However, recent developments suggested that this principle no longer holds in practice within Bittensor’s current structure. As a result, Covenant AI decided that it would not risk its community, partners, and investors by operating on the network any longer.
— covenant (@covenant_ai) April 9, 2026
Operational restrictions behind exit decision
According to Covenant AI, several actions directly affected its ability to operate independently and manage its own infrastructure without interference. These involved suspension of its emissions related to its subnets as well as the elimination of moderation of its own community channels. Also, the team mentioned unilateral depreciation of its subnet infrastructure, which derailed its operations and compromised its technical roadmap.
In addition, Covenant AI cited what it claimed was intentional economic pressure that was exerted by apparent token sales at times of operational friction. The team believed that these moves signify an element of centralized control that is contrary to the tenets of decentralized governance commonly advanced by the network. Consequently, the trust in the system as stable and fair became very low.
Governance structure under scrutiny
Covenant AI also highlighted broader structural concerns that extend beyond the immediate dispute and into the core of the network’s governance model. According to the team, Bittensor has a structure where authority is centrally held by a small group of people although the structure proclaims distributed control to the public. According to the statement, this arrangement enables major decisions to occur without transparent processes or meaningful community consensus.
Moreover, the firm claimed that it is still controlled under one actor, despite the network projecting to have a decentralized control in its promotional messages. It observed that such an arrangement poses long-term threats to the builders, validators and investors who require predictable and fair governance. As a result, Covenant AI came to the conclusion that the claims of decentralization of the network are not sufficient to its operational reality.
Covenant AI signals development to continue
In addition, the team emphasized that autonomy remains a fundamental requirement for any decentralized system that aims to attract long-term contributors. It opined that sustainable development and innovation require independent control over the infrastructure and the community spaces. Nevertheless, recent moves indicated that this independence might be overridden in some circumstances, which further questioned.
Covenant AI also restated its technical advances with the leave and emphasized its mass decentralized training initiatives with dozens of contributors in various environments. According to the statement, permissionless development of AI is still possible and can go beyond the confines of a single network.
Covenant AI’s departure highlights increasing scrutiny around governance in decentralized AI ecosystems. Although the team is set to continue its work independently, the situation attracts attention to the debates that continue to take place concerning control and accountability.