TLDR;
This video discusses the recent "rug pull" incident involving Covenant and its founder, Samuel Der, on the Bittensor network. It explores the reasons behind the scam, its impact on Bittensor, and potential solutions to prevent similar events in the future. The video emphasises that while the incident was damaging, it also presents an opportunity for Bittensor to learn and strengthen its protocol.
- Covenant's founder rug-pulled his projects on Bittensor, selling all tokens and leaving the network.
- The incident exposed vulnerabilities in Bittensor's governance and incentive structures.
- Solutions like "Locked Stake" are being considered to improve transparency and commitment from subnet owners.
Introduction [0:00]
The video introduces the topic of a significant event that occurred on Bittensor, involving Covenant and its founder, Samuel Der. Der decided to abandon Bittensor, selling all tokens from his three subnets (Templar, Basilica, and Grail), which negatively impacted investors. The video aims to clarify what happened, the reasons behind it, the consequences for Bittensor, and potential solutions to prevent similar situations, framing it as a potential learning experience for the network.
Que s'est-il passé ? [0:44]
The video details the events of the Covenant incident, explaining that Samuel Der, the founder of Covenant, announced his departure from the Bittensor network and sold all tokens held by his three subnets. This amounted to 37,000 TAO, which he sold on Binance for approximately $10-11 million. While not a traditional rug pull, it significantly damaged the charts of the tokens, causing drops of 50-70%. Covenant also released a statement accusing Const, the founder of Bittensor, of various actions, including suspending subnet emissions and removing Covenant's moderation rights, which the video dismisses as "bullshit".
Giveway Bybit [10:46]
The video includes a brief promotion for Bybit, a sponsor of the channel. A giveaway of 250 USDC (equivalent to one TAO) is announced for viewers who sign up using the affiliate link, complete KYC verification, and deposit 100 USDC on Bybit. Additionally, viewers who sign up through the affiliate link will receive 20 USDC by default, with an additional 20 EUR in BTC available through a current campaign.
La vérité [12:14]
The video explores the real reasons behind Samuel Der's actions, dismissing the reasons provided in his statement. It suggests that Der, overwhelmed by the success and attention following the announcement of the 72 billion parameter model training, became greedy and decided to exit the project. The video draws a comparison to News Research, a project that extracted value from Bittensor early on and then launched a separate successful venture. The video argues that Der was envious of News Research's trajectory and sought to replicate their success, but his damaged reputation makes it unlikely he will succeed.
Pourquoi ça a fait si mal à Bittensor ? [16:49]
The video explains why the Covenant incident significantly impacted Bittensor, highlighting that Templar was the second-largest subnet on the network. Templar aimed to train AI models in a decentralised manner, and had recently announced the pre-training of Covenen 72B, the largest decentralised LLM trained on Bittensor's subnet 3. This announcement generated significant buzz, attracting attention from figures like Chamath Palihapitiya, who mentioned Templar on the All In podcast. The news contributed to a surge in Bittensor's price, making the subsequent rug pull even more damaging.
Futur de l'entrainement décentralisé sur TAO [20:32]
Despite the setback, the video emphasises that the work done on Templar is open source and can be continued by others. Const, the founder of Bittensor, is already working to revive the subnet, and other subnets, such as subnet 5 (created by Lent Holding and Manifold Labs) and Shuts, have expressed interest in pursuing decentralised AI model training. Const has renamed Templar to Teonique and outlined a vision for training a 1 trillion parameter model. However, the video advises caution regarding investing in subnet 3 until the ownership and key management are resolved.
La solution : Locked Stake [25:31]
The video discusses the "Locked Stake" proposal as a potential solution to prevent similar incidents in the future. This feature would require subnet owners to lock their tokens, providing transparency to investors and preventing sudden exits. If a subnet owner decides to sell their tokens, they would need to unlock them first, making their intentions clear. This mechanism would also allow committed teams to demonstrate their long-term engagement with Bittensor.
Un mal pour un bien ? [28:03]
In conclusion, the video reflects on the incident as a potential "blessing in disguise" for Bittensor. Drawing parallels to past dramas in other decentralised networks like Bitcoin and Ethereum, the video suggests that these challenges ultimately lead to innovation and resilience. The video argues that the exploitation of the protocol, while painful in the short term, will drive Bittensor to develop new solutions and strengthen its foundation.
