For every genuine blockchain project leveraging artificial intelligence, there are 100 coins cashing in on the hype.
The magazine spoke with Near founder Illia Polosukhin, Framework Ventures founder Vance Spencer, MakerDAO founder Rune Christensen, Richard Ma of Quantstamp, Ralf Kubli of Casper and others to explore some of the key use cases and genuine and no hype for ai in crypto and blockchain.
We’re rolling out a genuine use case for ai in crypto every day this week, including reasons why you shouldn’t necessarily believe the hype.
AIs can help run DAOs
Decentralized autonomous organizations, as they exist today, are something of a fraud. As Framework Ventures founder Vance Spencer points out, “They’re not really autonomous. There are a lot of people in the middle.“
“It seems like ai is really our only way to make the DAO concept work,” he says.
With LLMs holding between 3% and 27% of their current output, the technology is too immature to run a DAO on its own or to enforce governance rules, says Maker founder Rune Christensen. However, he has laid out an ambitious plan for AIs to help run MakerDAO and its upcoming subDAOs in his Endgame manifesto.
“People don’t understand what we mean by ai governance, right? We’re not talking about ai running a DAO,” she states.
“What ai does so well is replace the dumbest, most mind-numbing part of the job.”
One of the big difficulties with DAOs is that it is very difficult for members scattered around the world to understand what everyone else is doing and for token holders to understand the issues of the DAO well enough to cast an informed vote. .
Illia Polushkin, founder of Near and an expert in both ai and blockchain, explains that AIs really shine when it comes to monitoring what is happening and then summarizing and communicating that information effectively.
“In a way, that’s the job of a manager,” he says. “They know exactly what’s happening and communicate to everyone exactly the part they need to know, as well as broader context about what’s happening.”
He says ai can scale to work with thousands of people, onboard new DAO members, manage logistics, and coordinate everyone’s tasks.
The broader direction of the DAO can still be set by the community, likely through an elected board of directors.
“It can still be overseen by the community, they can provide feedback and decide what the goals of the DAO are.”
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<h2 class="wp-block-heading" id="h-the-near-future-of-ai-assisted-dao”>The near future…of ai-assisted DAO
Polushkin says the Near Foundation plans to experiment with using ai to coordinate smaller tasks before moving on to more complex and important work. The hope is that eventually ai can handle day-to-day management.
“I think my role and that of other people in the system should be replaced in many ways, right?” says Polushkin.
“You know, we’re still coming up with ideas, but I think the coordination of all functions (can be handled by ai).”
Members of the Near community have already experienced by building an ai that can autonomously decide which projects to support with funding, based on whether it believes a proposal meets the grant program criteria, and then automatically fund it from the treasury.
<h2 class="wp-block-heading" id="h-maker-s-ai-atlas”>Creator’s ai Atlas
Maker’s approach will be to use various forms of ai tools, called Governance artificial intelligence Tools (GAIT), to guide the entire project. He is currently undertaking the mammoth task of cataloging into a formalized data set what is happening, who is doing what, along with all the rules that govern the functioning of the DAO and everything Maker has done. They call the dataset “Atlas” as it will provide a global overview of the entire project and will be updated in real time.
“Having that kind of central repository of data makes it really realistic for hundreds of thousands of people from different backgrounds and different levels of understanding to collaborate and interact in a meaningful way because they have this shared language.”
Community members can use GAIT to search for and bid on projects, and ai provides instant feedback on whether a proposal fits within guidelines, overall goals, and budget. The ability to instantly translate between languages will help you communicate better with community members located in different parts of the world.
Full ai-assisted DAO governance is unlikely to be ready for the launch of Maker’s four new subDAOs in early 2024, but Christensen sees huge potential ahead.
“ai strategy simply changes the number of humans needed to have a successful DAO,” he says.
“It is possible that once ai-assisted governance reaches a level of maturity, it will have many more DAOs than humans.”
You can read more about what Maker is doing ai-tools/21686″ target=”_blank” rel=”nofollow”>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 run them.
Given the fierce politics in DAOs (often around who gets funded), there will be a temptation to outsource decision-making to “unbiased ai,” but this is not possible with any degree of confidence yet, given the state of technology.
The current generation of LLMs hallucinate their answers at least 3% of the time, making them an unreliable guide to DAO governance and could see them potentially leading community members down the wrong path by attempting to coordinate them.
Given this unreliability, it will be a long time before you trust anyone with the keys to your treasury without strict guidelines or spending limits to mitigate any errors.
Also Read: Real ai Use Cases in Cryptocurrencies #1: The Best Money for ai is Cryptocurrencies
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