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DAOs will never develop above their present state without the help of robots

6 min reading

Current DAO models would be free of human error thanks to artificial intelligence.

DAOs (decentralized autonomous organizations) are already transforming the world by empowering significant groups of individuals to make autonomous choices. These groups are reducing the need for centralized management teams, which have traditionally defined strategy and managed all sectors of public- and private-sector enterprises. They are facilitated by blockchain technology, which is life-changing.

Marcello Mari is the CEO of SingularityDAO, an autonomous initiative fostered by SingularityNET that integrates decentralized finance with artificial intelligence and offers AI-powered portfolio management for the crypto sector.

DAOs, on the other side, may be in for a reform that may address their most serious flaw.

DAO decisions are subject to problems in judgment since the present DAO model is operated by humans. Another revolutionary innovation, artificial intelligence, would remove these errors and make DAOs much more successful.

What are DAOs and how do they work?

A Decentralized Autonomous Organization (DAO) is an organization managed by rules encoded in the form of a transparent computer program. DAOs are decentralized organizations controlled by their members (well, semi-decentralized in their current form). Managers are not necessary because the rules of the organizations are built in the codes. DAOs remove the bureaucracy and hierarchy barriers that exist in traditional organizations.

The emergence of DAOs may be traced back to a long-standing issue among internet users: "How can we exchange values in a trusted environment?"The development of blockchain technology allows for automated verified transactions and value transfers, enabling internet users all over the world to arrange themselves securely and efficiently to accomplish shared goals.

DAOs' financial transactions and regulations are recorded on the blockchain, removing the need for third-party companies and streamlining transactions through smart contracts.

Governance tokens, which are often used to give holders the right to vote, are used in DAOs. These tokens usually allow holders to engage in the decentralized governance of protocols, or even the governance of the tokens themselves.

The Emergence of DAOs

DAOs became widely known in 2021. DAOs had previously performed various functions, including investment, charity, and fundraising, but on a small scale.

DAOs currently have almost a million members, due to last year's enormous expansion. According to ConsenSys, the top 20 DAOs together own more than $14 billion in digital assets. And the growth is not restricted to large DeFi players like Compound and MakerDAO. Smaller DAOs have developed, and their popularity is growing. ConstitutionDAO, which generated about $47 million in less than a week to buy a unique copy of the United States Constitution, was one of the most popular DAOs last year.

While the group missed the mark of its goal, the widespread coverage it received in the mainstream media indicated that similar and even larger ventures may emerge in the coming future. Although some people asked if the ConstitutionDAO was a DAO or a temporary fundraising structure to buy the historic document, it indicated that DAOs could revolutionize many different sectors. ConstitutionDAO was established with a single goal in mind and has not made any decisions since.

DAOs are also influencing the music world. JennyDAO got its first NFT in May, an original song by Steve Aoki and 3LAU. JennyDAO is a metaverse organization that offers non-fungible token fractional ownership. Members choose which NFTs to obtain, unlike in ConstitutionDAO. The vault where the NFTs will be stored is managed by smart contracts from the Unicly platform.

Growth Patterns

This year might be even greater for DAOs in terms of involvement and the massive quantities of funds they will probably increase. Traditional methods to finance, health, art, and the law, among several other fields, have started to be replaced by the DAO method. (It is worth noting that many DAOs are not fundraisers, as many people think)

DAOs will also address concerns of diversity by allowing individuals from all over the globe to engage in the decision process of multiple projects at the same time, and they will become a more important tool for governing the decentralized environment in the months ahead.

Shifting to robots

Robots provide a way ahead. Despite their rapid growth, DAOs continue to be plagued by human errors, which may prevent them from reaching their full capacity.

By performing tasks on behalf of people in a DAO, artificial general intelligence (AGI) could provide a better road ahead. To make better judgments, AGI would integrate human-like, flexible thinking and reasoning with split-second number crunching and other computing benefits.

A DAO's ultimate purpose is to operate without the need for human hierarchical management. A group of human participants would select AI agents to serve them in the decision-making process using AI DAOs, removing human bias from the process. The AI agents would then collaborate independently to make the best decisions possible when it comes to developing their own products and services, selling them, and distributing the profits to human participants.

In the upcoming period, several DAOs will likely switch to this enhanced model while still benefiting from blockchain and other latest advancements. Many DAOs will likely move away from full human control of operations and toward automation in the future. The DAOs would then be able to fully utilize AI, blockchain, and other developing technology to increase their efficiency.

By eliminating human bias and errors, AI DAOs would also save funds. They would become self-contained creatures, achieving the original DAO goal of improving corporate behaviour.

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