AIs Can Run DAOs – Cointelegraph Magazine

For every real blockchain project that uses artificial intelligence, there are 100 coins from listeners.

Near Magazine spoke to Ilya Polosukin, Framework Ventures founder Vance Spencer, MakerDAO founder Rune Christensen, Richard Ma from Quantstamp, Ralph Kubly from Casper and more to explore some key hysterical-free, real AI use cases in crypto and blockchain.

This week we present a real use case for AI in everyday crypto.

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AIs can help run DAOs.

Decentralized autonomous organizations, as they exist today, are a fraud. As Vance Spencer, founder of Framework Ventures, points out, “They're not really autonomous. There are a lot of people in the middle.”

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

While LLMs currently account for 3 percent to 27 percent of production, the technology is too immature to run a DAO on its own or enforce governance rules, says Maker founder Rune Christensen. However, in the Endgame Manifesto, AIs have made grand plans to run MakerDAO and its upcoming sub-DAOs.

“People understand what we mean by AI management, right? We're not talking about running an AI DAO,” he says.

“AI is about replacing the best, most soul-numbing, weakest part of the job.

One of the biggest problems in the DAO is that it is very difficult for members scattered around the world to understand what everyone is doing and for token holders to better understand the issues in the DAO and make an informed vote.

Founder Ilya Polushkin – an expert in both AI and blockchain – explains that AI really shines when it comes to tracking what's going on and summarizing and communicating that information.

“In a way, this is a manager's job,” he said. They know exactly what's going on and talk about the part you need to know as well as the broader context of what happened.

He says AI can scale to work with thousands of people, onboard new DAO members, manage logistics and coordinate everyone's actions.

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

“It can still be controlled by the community, they can give feedback and decide what the goals of the DAO are.”

Recently… The DAO powered by AI

Polshkin said the Near Foundation plans to experiment with using AI to coordinate smaller tasks before graduating to more complex and important tasks. The hope is that eventually AI will be able to handle day-to-day management.

“I think the role of me and other people in the system has to be replaced in many ways, right?” Polushkin says.

You know, we can still come up with ideas, but I think the coordination of all the tasks (could be handled by AI).

Recent community members have already experimented by building an AI that can determine which projects to fund by trusting that a proposal meets the criteria for a grant program and then automatically funding it from the Treasury.

Maker AI Atlas

A maker approach would be to use different types of AI tools – called Administrative Artificial Intelligence Tools (GAITs) – as guides for the overall project. It's currently doing a great job of extracting what's going on, who's doing what, all the rules that govern the DAO's operation, and everything a creator has done in a standard dataset. They call the database an “atlas” because it provides an overview of the entire project – and it's updated in real time.

“Having such a central repository of information makes it really possible for hundreds of thousands of people from different backgrounds and different backgrounds to collaborate and communicate in a meaningful way because they have this common language.”

Community members can use GAITs to find and bid on projects, with AI providing instant feedback on whether the idea fits the guidelines, overall objectives, and budget. The ability to translate between languages ​​in real time helps to better communicate with community members in different parts of the world.

It's unlikely that fully AI-assisted DAO management will be ready to launch Maker's four new subsidiary DAOs in early 2024, but Christensen sees great potential in the future.

“The AI ​​strategy just changes how many people you need to have a successful DAO,” he said.

“Once you get AI-assisted governance to maturity, you can have more DAOs than you have people.”

You can read more about what Maker is up to here.

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Don't believe the rumors

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

Given the intense politics in the DAO (often around people who get funding), there will be a temptation to hand over decision-making to an “impartial AI”, but this is not yet possible with any level of trust in the state of the technology.

Current LLMs' responses evolve at least 3% of the time, making them unreliable guides for DAO management and potentially misleading community members when trying to coordinate them.

If this is not reliable, it will be a long time before you trust one with the keys to your vault without incurring strict guidelines and costs to mitigate any errors.

Also read – Real AI use case in crypto, number 1: The best currency for AI is crypto

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Andrew Fenton

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

Follow the author @andrewfenton