{"id":202284,"date":"2023-11-28T20:33:37","date_gmt":"2023-11-28T15:03:37","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=202284"},"modified":"2023-11-28T20:33:37","modified_gmt":"2023-11-28T15:03:37","slug":"ais-can-run-daos-cointelegraph-magazine-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/ais-can-run-daos-cointelegraph-magazine-crypto-news\/","title":{"rendered":"AIs can run DAOs \u2013 Cointelegraph Magazine – Crypto News"},"content":{"rendered":"

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For every genuine blockchain project harnessing artificial intelligence there are 100 coins trading off the hype.<\/strong><\/p>\n

Magazine spoke with Near founder Illia Polosukhin, Framework Ventures founder Vance Spencer, MakerDAO founder Rune Christensen, Richard Ma from Quantstamp, Ralf Kubli from Casper and others to explore some of the key hype-free, genuine use cases for AI in crypto and blockchain.<\/p>\n

We\u2019re rolling out one genuine use case<\/a> for AI<\/a> in crypto each day this week \u2014 including reasons why you shouldn\u2019t necessarily believe the hype. <\/p>\n

AIs can help run DAOs<\/h2>\n
\"Atlas\"
MakerDAO is creating an Atlas to the entire project to assist in AI governance (Maker)<\/em><\/figcaption><\/figure>\n

Decentralized autonomous organizations, as they exist today, are something of a fraud. As Framework Ventures founder Vance Spencer points out, they are \u201cnot actually autonomous. There\u2019s a bunch of people in the middle.\u201c<\/strong><\/p>\n

\u201cIt just seems like AI is really our only way to actually make the DAO concept work,\u201d he says.\u00a0<\/p>\n

Given LLMs hallucinate between 3% to 27% of their output <\/a>at present, the technology is too immature to run a DAO by itself or to enforce governance rules, says Maker founder Rune Christensen. Nevertheless, he\u2019s mapped out an ambitious plan for AIs to help run MakerDAO and its forthcoming subDAOs in his Endgame manifesto.<\/p>\n

\u201cPeople misunderstand what we mean with AI governance, right? We\u2019re not talking about AI running a DAO,\u201d he says.<\/p>\n

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\u201cWhat AI is so great at, is replacing the most soul numbing, dumbest part of the work.\u201d\u00a0<\/p>\n<\/blockquote>\n

One of the big difficulties with DAOs is that it\u2019s very difficult for members dispersed around the globe to understand what everyone else is doing and for tokenholders to understand the issues in the DAO well enough to cast an informed vote.<\/p>\n

\"Illia\"\"Illia\"
Near founder Illia Polushkin is an expert in both AI and blockchain. <\/em><\/figcaption><\/figure>\n

Near founder Illia Polushkin \u2014 an expert in both AI and blockchain \u2014 explains that AIs really shine when it comes to monitoring what\u2019s going on and then summarizing and communicating that information effectively.<\/p>\n

\u201cIn a way, that\u2019s a manager\u2019s job,\u201d he says. \u201cThey know exactly what\u2019s happening and they communicate to everyone exactly the part you need to know, as well as broader context about what\u2019s happening.\u201d<\/p>\n

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Images like these showing LLMs replacing humans in org charts of companies is where fear of AI comes from.<\/p>\n

This was probably created as a joke, but many believe AI is very close to completely replacing them and their management!<\/p>\n

This is factually not true. <\/p>\n

There is near zero\u2026 pic.twitter.com\/YnowscSGGl<\/a><\/p>\n

\u2014 Bindu Reddy (@bindureddy) November 14, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

He says AI can scale up to work with thousands of people, onboard new DAO members, manage logistics and coordinate everyone\u2019s tasks. <\/p>\n

The broader direction of the DAO can still be set by the community, likely via an elected board of directors.<\/p>\n

\u201cIt can still be overseen by the community, they can provide feedback and decide on what are the goals for the DAO.\u201d<\/p>\n

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Read also<\/p>\n

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Are DAOs overhyped and unworkable? Lessons from the front lines<\/p>\n

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Wild, Wild East: Why the ICO Boom in China Refuses to Die<\/p>\n

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The Near future<\/strong>\u2026 of AI-assisted DAO<\/h2>\n

Polushkin says the Near Foundation plans to experiment with the use of AI to coordinate smaller tasks before graduating to more complex and important jobs. The hope is that eventually, the AI will be able to handle the day to day management.<\/p>\n

\u201cI think the role of me and other folks in the system should be replaced in many ways, right?\u201d Polushkin says. <\/p>\n

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\u201cYou know, we can still come up with ideas, but I think the coordination of all the functions (can be handled by AI).\u201d<\/p>\n<\/blockquote>\n

Members of the Near community have already experimented<\/a> with building an AI that can autonomously decide which projects to support with funding, based on whether it believes a proposal satisfies the grant program criteria, and then automatically fund it from the treasury.\u00a0<\/p>\n

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Maker\u2019s AI Atlas<\/strong><\/h2>\n

Maker\u2019s approach will be to use various forms of AI tools \u2014 called Governance Artificial Intelligence Tools (GAITs) \u2014 as a guide to the entire project. It\u2019s currently undertaking the mammoth task of cataloging in a formalized dataset what\u2019s going on, who is doing what, along with all the rules that govern the workings of the DAO and everything that Maker has ever done. They\u2019re calling the dataset \u201cAtlas,\u201d as it will give a global overview of the entire project \u2014 and it will be updated in real-time.<\/p>\n

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\u201cHaving that sort of central repository of data just makes it actually realistic to have hundreds of thousands of people from different backgrounds and different levels of understanding\u00a0 meaningfully collaborate and interact because they\u2019ve got this shared language.\u201d<\/p>\n<\/blockquote>\n

Community members can use GAITs to find and bid on projects, with the AI providing instant feedback on whether a proposal fits within the guidelines, overarching aims and budget. The ability to instantly translate between languages will help communicate better with community members based in different parts of the globe.<\/p>\n

\"Rune\"\"Rune\"
Rune Christensen talking up Endgame and SubDAOs at Token2049.<\/em><\/figcaption><\/figure>\n

Fullblown AI-assisted DAO governance is unlikely to be ready for the launch of Maker\u2019s four new subDAOs in early 2024, but Christensen sees huge potential in the future.\u00a0<\/p>\n

\u201cThe AI strategy just changes how many humans you need in order to have a successful DAO,\u201d he says.<\/p>\n

\u201cIt\u2019s possible that once you really get AI-assisted governance to a level of maturity, you may have a lot more DAOs than you have humans.\u201d<\/p>\n

You can read more on what Maker is up to here<\/a>. <\/p>\n

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Read also<\/p>\n

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Joe Lubin: The truth about ETH founders split and \u2018Crypto Google\u2019<\/p>\n

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Guide to real-life crypto OGs you\u2019d meet at a party (Part 2)<\/p>\n

<\/a>\n <\/div>\n<\/div>\n<\/div>\n

Don\u2019t believe the hype<\/strong><\/h2>\n

AI is already a useful tool for DAOs, but it will be a long time before AI will be mature enough to actually run DAOs. <\/p>\n

Given the fierce politics in DAOs (often around who gets funding) there will a temptation to outsource decision-making to an \u201cunbiased AI,\u201d but this is not possible with any degree of confidence yet, given the state of the technology.<\/p>\n

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 steering community members down the wrong path while attempting to coordinate them. <\/p>\n

Given this unreliability, it\u2019ll be a long time before you\u2019d trust one with the keys to your treasury without strict guidelines and spending caps to mitigate any errors.<\/p>\n

Also read \u2014 Real AI use cases in crypto, No. 1: The best money for AI is crypto<\/a><\/em><\/strong><\/p>\n

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\n\t\t\t\t\t\t\t\"Andrew\"Andrew\n\t\t\t\t\t\t<\/div>\n
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Andrew Fenton<\/h2>\n

Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.<\/p>\n