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
MakerDAO is creating an Atlas to the entire project to assist in AI governance (Maker)
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 is an expert in both AI and blockchain.
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.”
Images like these showing LLMs replacing humans in org charts of companies is where fear of AI comes from.
This was probably created as a joke, but many believe AI is very close to completely replacing them and their management!
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.
“I think the role of me and other folks in the system should 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 functions (can be handled by AI).”
Members of the Near community have already experimented 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.
Maker’s AI Atlas
Maker’s approach will be to use various forms of AI tools — called Governance Artificial Intelligence Tools (GAITs) — as a guide to the entire project. It’s currently undertaking the mammoth task of cataloging in a formalized dataset what’s 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’re calling the dataset “Atlas,” as it will give a global overview of the entire project — and it will be updated in real-time.
“Having 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 meaningfully collaborate and interact because they’ve got this shared language.”
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.
Rune Christensen talking up Endgame and SubDAOs at Token2049.
Fullblown 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 in the future.
“The AI strategy just changes how many humans you need in order to have a successful DAO,” he says.
“It’s 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.”
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.
Given the fierce politics in DAOs (often around who gets funding) there will a temptation to outsource decision-making to an “unbiased AI,” but this is not possible with any degree of confidence yet, given the state of the 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 steering community members down the wrong path while attempting to coordinate them.
Given this unreliability, it’ll be a long time before you’d trust one with the keys to your treasury without strict guidelines and spending caps to mitigate any errors.
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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 national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.
Based on an evaluation between December 2023 and January 2025, the IRS Criminal Investigation did not always follow guidelines around seizing and holding crypto in cases.
The chancellor has said she was having a “tough day” yesterday in her first public comments since appearing tearful at Prime Minister’s Questions – but insisted she is “totally” up for the job.
Rachel Reeves told broadcasters: “Clearly I was upset yesterday and everyone could see that. It was a personal issue and I’m not going to go into the details of that.
“My job as chancellor at 12 o’clock on a Wednesday is to be at PMQs next to the prime minister, supporting the government, and that’s what I tried to do.
“I guess the thing that maybe is a bit different between my job and many of your viewers’ is that when I’m having a tough day it’s on the telly and most people don’t have to deal with that.”
She declined to give a reason behind the tears, saying “it was a personal issue” and “it wouldn’t be right” to divulge it.
“People saw I was upset, but that was yesterday. Today’s a new day and I’m just cracking on with the job,” she added.
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Ms Reeves also said she is “totally” up for the job of chancellor, saying: “This is the job that I’ve always wanted to do. I’m proud of what I’ve delivered as chancellor.”
Image: Reeves was seen wiping away tears during PMQs. Pic: PA
Asked if she was surprised that Sir Keir Starmer did not back her more strongly during PMQs, she reiterated that she and the prime minister are a “team”, saying: “We fought the election together, we changed the Labour Party together so that we could be in the position to return to power, and over the past year, we’ve worked in lockstep together.”
PM: ‘I was last to appreciate’ that Reeves was crying
The chancellor’s comments come after the prime minister told Sky News’ political editor Beth Rigby that he “didn’t appreciate” that she was crying behind him at Prime Minister’s Questions yesterday because the weekly sessions are “pretty wild”, which is why he did not offer her any support while in the chamber.
He added: “It wasn’t just yesterday – no prime minister ever has had side conversations during PMQs. It does happen in other debates when there’s a bit more time, but in PMQs, it is bang, bang, bang. That’s what it was yesterday.
“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”
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Starmer explains to Beth Rigby his reaction to Reeves crying in PMQs
During PMQs, Tory leader Kemi Badenoch branded the chancellor the “human shield” for the prime minister’s “incompetence” just hours after he was forced to perform a humiliating U-turn over his controversial welfare bill, leaving a “black hole” in the public finances.
The prime minister’s watered-down Universal Credit and Personal Independent Payment Bill was backed by a majority of 75 in a tense vote on Tuesday evening – but a total of 49 Labour MPs voted against the bill, which was the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s lone parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.
Reeves looks transformed – but this has been a disastrous week for the PM
It is a Rachel Reeves transformed that appears in front of the cameras today, nearly 24 hours since one of the most extraordinary PMQs.
Was there a hint of nervousness as she started, aware of the world watching for any signs of human emotion? Was there a touch of feeling in her face as the crowds applauded her?
People will speculate. But Ms Reeves has got through her first public appearance, and can now, she hopes, move on.
The prime minister embraced her as he walked on stage, the health secretary talked her up: “Thanks to her leadership, we have seen wages rising faster than the cost of living.”
A show of solidarity at the top of government, a prime minister and chancellor trying to get on with business.
But be in no doubt today’s speech on a 10-year-plan for the NHS has been overshadowed. Not just by a chancellor in tears, but what that image represents.
A PM who, however assured he appeared today, has marked his first year this week, as Sky News’ political editor Beth Rigby put to him, with a “self-inflicted shambles”.
She asked: “How have you got this so wrong? How can you rebuild trust? Are you just in denial?”
They are questions Starmer will be grappling with as he tries to move past a disastrous week.
Ms Reeves has borne a lot of the criticism over the handling of the vote, with some MPs believing that her strict approach to fiscal rules has meant she has approached the ballooning welfare bill from the standpoint of trying to make savings, rather than getting people into work.
Ms Badenoch also said the chancellor looked “absolutely miserable”, and questioned whether she would remain in post until the next election.
Sir Keir did not explicitly say that she will, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”
Downing Street scrambled to make clear to journalists that Ms Reeves was “going nowhere”, and the prime minister has since stated publicly that she will remain as chancellor “for many years to come”.