Bittensor co-founder Jacob Steeves (known online as “Const”) has broken his silence following the departure of Samuel Dare and Covenant AI, calling it a “deep betrayal” that sent TAO’s price crashing 25% on April 10.
According to reports from Bitcoin.com News, TAO plunged from $337 to $253 in less than six hours, wiping out roughly $650 million in market capitalization and causing $9.1 million in long position liquidations. While the token briefly recovered to nearly $280 on Sunday, it later settled just above $260, leaving the community shaken.
‘He Let Down Everyone Who Trusted Him’
In a deeply personal statement, Steeves said he had considered Dare a “brother” but accused him of deliberately inflicting “maximum damage” on the protocol and its community. “He let down everyone who bought his token and trusted him,” Steeves wrote. “He betrayed us all.” He dismissed Dare’s accusations of centralization as “baseless” and suggested his former colleague might be experiencing a personal crisis.
The fallout from Covenant AI’s exit not only crashed TAO’s price but also left several subnets in limbo. Steeves argued the incident exposes the inherent flaws of human-driven governance, stating that “greed and selfishness are exactly the pitfalls Bittensor was designed to resist.” He emphasized the need to shift from legal liability to cryptographic accountability.
‘Locked Stake’ Proposal: Let Math Rule Human Nature
To rebuild community confidence, Steeves announced a new protocol-level feature called “Locked Stake,” to be formally presented at the next Bittensor Discord community call. The mechanism allows subnet owners to lock their tokens for a defined period to demonstrate long‑term commitment. “It’s measured as the time remaining before tokens can move—time plus stake,” Steeves explained. This transparency is designed to prevent sudden founder exits or dumping.
Steeves reaffirmed that Bittensor remains “by far the most decentralized AI protocol” and framed the crisis as a necessary evolution. The detailed design of Locked Stake will be discussed at an open session on Thursday, where Steeves will answer community questions. He apologized to investors who suffered losses during the crash and vowed to prevent similar “financial scams” in the future.