AIs can run DAOs – Cointelegraph Magazine

For every genuine blockchain project harnessing artificial intelligence there are 100 coins trading off the hype.

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.

We’re rolling out one genuine use case for AI in crypto each 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 are “not actually autonomous. There’s a bunch of people in the middle.“

“It just seems like AI is really our only way to actually make the DAO concept work,” he says. 

Given LLMs hallucinate between 3% to 27% of their output 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’s mapped out an ambitious plan for AIs to help run MakerDAO and its forthcoming subDAOs in his Endgame manifesto.

“People misunderstand what we mean with AI governance, right? We’re not talking about AI running a DAO,” he says.

“What AI is so great at, is replacing the most soul numbing, dumbest part of the work.” 

One of the big difficulties with DAOs is that it’s 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.

Near founder Illia Polushkin — an expert in both AI and blockchain — explains that AIs really shine when it comes to monitoring what’s going on and then summarizing and communicating that information effectively.

“In a way, that’s a manager’s job,” he says. “They know exactly what’s happening and they communicate to everyone exactly the part you need to know, as well as broader context about what’s happening.”