AI Can Run DAOs – Cointelegraph Magazine

Every true blockchain project that leverages artificial intelligence has 100 coins.

Magazine spoke with Near founder Illia Polosukhin, Framework Ventures founder Vance Spencer, MakerDAO founder Rune Christensen, Quantstamp’s Richard Ma, Casper’s Ralf Kubli and others to explore real-life, not overhyped, use cases for AI in cryptocurrency and blockchain.

We will be releasing one real-world use case of AI in cryptocurrency every day this week. This includes why you shouldn’t believe the hype.

AI can help run DAOs

The decentralized autonomous organizations that exist today are a fraud. As Framework Ventures founder Vance Spencer points out, they “are not really autonomous. There are many people in the middle.“

“AI seems to be the only way to make the DAO concept really work,” he says.

Given that LLM is currently generating between 3% and 27% of production, the technology is too immature to run a DAO or enforce governance rules on its own, says Maker founder Rune Christensen. Nonetheless, in his Endgame manifesto, he laid out ambitious plans for AI to help run MakerDAO and its upcoming subDAO.

“People misunderstand what AI governance means, right? We are not talking about AI running a DAO,” he says.

“What AI is so good at is replacing the most soul-numbing and dumbest parts of the job.”

One of the biggest challenges of a DAO is that it is very difficult for its globally distributed members to understand what everyone else is doing, and for token holders to understand the issues in the DAO enough to be able to make informed votes.

Near founder Illia Polushkin, an AI and blockchain expert, explains that AI really shines when it comes to monitoring what’s going on and effectively summarizing and communicating that information.

“In some ways, that’s the manager’s job,” he says. “They know exactly what’s going on, and they communicate to everyone exactly what they need to know, as well as the broader context of what’s happening.”

He says AI can scale to collaborate with thousands of people, recruit new DAO members, manage logistics, and coordinate everyone’s work.

The broader direction of the DAO can still be set by the community through an elected board of directors.

“The community can still provide oversight, provide feedback and decide what the goals of the DAO are.”

near future… AI-enabled DAO’s

Polushkin says the Near Foundation plans to experiment with using AI to coordinate small-scale tasks before graduating to more complex and important jobs. Eventually, the hope is that AI will be able to handle day-to-day management.

“I think my role and that of others within the system needs to be replaced in many ways. Yes?” Polushkin says:

“You know, we can still come up with the idea, but the coordination of all the functions (I think AI can handle it).”

Members of the Near community have already experimented with building AI that can autonomously decide which projects to fund based on whether they believe the proposal meets the grant program’s criteria, and then automatically obtain funding from the Treasury.

Maker’s AI Atlas

Maker’s approach is to use various forms of AI tools, called GAIT (Governance Artificial Intelligence Tools), to guide the entire project. We are currently undertaking the enormous task of cataloging in a formalized dataset what is happening, who is doing what, along with all the rules that govern the work of the DAO and all the work done by Maker. They call the dataset “Atlas”, which will provide a global overview of the entire project and will be updated in real time.

“Having this kind of central data repository allows hundreds of thousands of people with different backgrounds and different levels of understanding to meaningfully collaborate and interact because they have a shared language.”

Community members can use GAIT to find and bid on projects, and AI provides immediate feedback on whether proposals fit guidelines, overarching goals, and budget. Instant translation between languages ​​helps you communicate more effectively with community members in different parts of the world.

Full-scale AI-backed DAO governance isn’t ready for the launch of Maker’s four new child DAOs in early 2024, but Christensen sees tremendous potential for the future.

“AI strategies change the number of humans needed to have a successful DAO,” he says.

“When AI-assisted governance actually reaches that level of maturity, there is the potential for us to have far more DAOs than humans.”

You can learn more about what Maker is doing here.

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Don’t believe the hype

AI is already a useful tool for DAOs, but it will be a long time before AI is mature enough to actually run DAOs.

Given the intense political climate of DAOs (often funded by them), it may be tempting to outsource decision-making to “unbiased AI,” but given the state of the technology, this is not yet possible with any degree of confidence.

The current generation of LLMs hallucinate their own answers at least 3% of the time, making them unreliable guides to DAO governance and potentially seeing them steering community members astray while attempting to coordinate them. .

Because of this unreliability, it will be a long time before you can trust anyone with the keys to your safe without strict guidelines and spending limits to mitigate errors.

Also Read — Real-World AI Use Cases in Cryptocurrency, No. 1: The Best Money for AI Is Cryptocurrency

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Andrew Fenton

Andrew Fenton, based in Melbourne, is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, a film journalist for SA Weekend and The Melbourne Weekly.

Follow the author @andrewfenton