Bittensor’s TAO token plunged 25% after a fallout between co-founder Jacob Steeves and Samuel Dare triggered a sharp market sell-off and heightened investor concerns.
The dispute, linked to Covenant AI’s exit, erased roughly $650 million in market capitalisation and led to $9.1 million in long liquidations as prices dropped from $337 to $253 within hours.
“He let everyone down who bought his token and who trusted in him,”
Said Jacob Steeves, adding:
“He betrayed us all.”
Steeves accused Dare of deliberately causing “maximum pain” to the community, while Dare countered that earlier price declines were driven by token sales linked to Steeves, intensifying the public dispute.
In response, Steeves proposed a new “Locked Stake” mechanism designed to enforce long-term commitment by requiring token holders to lock assets for a defined period.
The proposal aims to introduce “cryptographic accountability” and reduce the risk of sudden exits or large-scale token dumps that can destabilise the ecosystem.
Steeves is expected to present the formal design during a community call on Discord next week, as the project attempts to rebuild confidence following the sharp market reaction.
At the time of reporting, Bittensor price was $262.13.