Why Do DAOs Need AI? A Step Toward Smarter Decentralisation

November 22, 2024
A look at why decentralised autonomous organisations could use AI

Introduction

Decentralised Autonomous Organisations (DAOs) are the cornerstone of the Web3 crypto space, allowing communities to collectively make decisions, allocate resources, and shape their futures—without the need for central authorities. But let’s face it, while DAOs are brilliant in theory, in practice, they sometimes resemble a committee that forgot the agenda.

Enter Artificial Intelligence (AI), ready to put the 'auto' back into autonomous. With AI’s knack for automating tasks, analysing proposals, and keeping governance streamlined, this partnership isn’t just about efficiency—it’s about revolutionising the way decentralised Web3 communities operate.

What happens when AI meets DAO? It’s a lot less chaos and a whole lot more intelligence.

Let’s dive into how this dynamic duo is shaping the future of Web3.

Problems Faced by Traditional DAOs

Despite the promise of decentralisation and fairness, traditional DAOs face certain challenges.

1. Governance Inefficiencies

DAO governance often involves lengthy discussions to ensure inclusivity, which, while admirable, can lead to paralysis by analysis.

Voting periods—designed to be fair and allow all members to participate—can stretch for days or weeks, delaying actionable outcomes.

This sluggish process can hinder a DAO’s ability to respond to time-sensitive opportunities, leaving members frustrated and the organisation less competitive in fast-paced markets.

2. Human Bias

Despite the decentralised ethos of DAOs, human bias often sneaks into decision-making. Members might favour proposals submitted by prominent figures or popular contributors, regardless of the proposal’s actual merit.

Similarly, subjective judgment can impact resource allocation, undermining the fairness and inclusivity that DAOs strive to embody. Over time, these human biases can erode the trust within the community and compromise the DAO’s long-term success.

3. Scalability Issues

As DAOs grow in membership, they face an increasing volume of proposals and decisions to manage. The influx can overload the system, leading to bottlenecks in decision-making.

Voting and discussion forums may become cluttered with redundant or low-quality proposals, making it difficult for members to focus on high-priority initiatives and innovations.

4. Fragmented Engagement

DAOs thrive on active participation. Keeping members engaged across different time zones and communication platforms often feels like herding cats.

Important updates, proposals, and discussions can get lost in endless chat threads or buried under time-sensitive notifications, leaving members uninformed, disconnected, or disengaged.

This fragmented engagement can dilute the sense of community and lead to uneven participation.

How AI Can Enhance DAOs

1. Automated Decision-Making

AI streamlines DAO governance by analysing proposals, forecasting their potential impacts, and recommending actions based on predefined parameters.

This doesn’t just enhance decision-making within a single DAO. It enables 'swarm intelligence', where interconnected AI agents can coordinate decisions across multiple DAOs. For instance, AI could autonomously detect synergies between proposals from different DAOs, enabling faster collaboration and resource sharing, effectively creating a dynamic, decentralised network of governance.

2. Intelligent Proposal Summaries

AI can condense those long governance proposals and discussions into digestible summaries, ensuring everyone remains updated despite being time starved.

An AI tool could provide daily or weekly digests summarising ongoing discussions, voting outcomes, and key updates directly to members' inboxes or communication platforms like Discord.

3. Enhanced Member Engagement

Member participation is crucial for a DAO’s success, and AI can significantly boost engagement by tailoring recommendations to individual preferences.

For instance, AI-powered tools can analyse user behaviour and suggest relevant DAO initiatives, discussions, or proposals.

The 'Discover' feature on Votigram, a Telegram bot built on TMRWDAO's infrastructure, aims to recommend decentralised applications (dApps) that align with a user’s interests and goals, ensuring members feel connected to the DAO's activities. This personalised approach fosters a sense of belonging and encourages active participation.

4. Bias Mitigation

AI, driven by machine learning algorithms, can evaluate proposals and voting outcomes based on objective data and predefined metrics. This can help mitigate human bias in DAOs.

For example, instead of relying on personal preferences or social dynamics, an AI model could analyse the historical performance of similar proposals or assess alignment with the DAO’s goals to guide decisions and maintain an impartial stance.

5. Cost Efficiency

AI-powered automation can handle repetitive administrative tasks like onboarding, executing asset trades, or managing treasury activities efficiently, reducing the need for human intervention and minimising operational costs.

An AI bot could automatically verify and onboard members using pre-set criteria or execute routine trades to optimise treasury management. This allows DAOs to allocate their resources toward strategic initiatives and growth rather than mundane operational activities.

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Case in Point: How TMRWDAO Pioneers AI-Powered Governance

TMRWDAO is pushing the boundaries of what’s possible in decentralised organisations by incorporating advanced AI tools into its ecosystem. It aims to redefine DAO governance with features that simplify operations and empower members to make informed decisions:

  • AI-Powered governance tools: This enables TMRWDAO to automate summaries of governance discussions, proposal evaluations, and personalised recommendations. Members get to focus on strategic decisions without wading through endless documentation.
  • Streamlined management: TMRWDAO makes DAO creation and management accessible to everyone. With its user-friendly interface and intuitive tools, users can effortlessly establish DAOs, manage members, and oversee treasury operations.
  • Future-ready governance: From bias-free proposal assessments to actionable data insights, TMRWDAO AI-powered tools empower members to navigate DAO operations with confidence

AI-Powered DAOs: Integration With Telegram

The boom on the Telegram Mini App scene has attracted many big names in DeFi and consumer brands to integrate with it. DAOs are also not left out; as mentioned earlier, Votigram, a Telegram Bot leveraging TMRWDAO's infrastructure and powered by aelf, enables users to create community polls with on-chain recorded votes.

It recently launched a new 'Discover' feature, where users get recommended curated dApps based on preferences and activity patterns.

The polls on Votigram introduce a 'fun factor' and rewards to voting and governance, exemplifying how blockchain, utility, and mobile messaging convenience converge to deliver real value to the community.

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Conclusion

As DAOs evolve, integrating AI isn’t just a convenience—it’s a necessity. AI promises to tackle scalability, improve governance, and foster inclusivity, driving DAOs toward a future of efficiency and innovation.

Are you ready to build the next-generation DAO? Explore TMRWDAO’s AI-powered solutions and unlock new possibilities in Web3 governance.


*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. TMRWDAO makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult a qualified financial or legal advisor before making investment decisions.

About Tomorrow DAO

Tomorrow DAO (TMRWDAO) is an advanced decentralised governance platform built on the aelf blockchain, a high-performance Layer 1 network. Launched in 2024, TMRWDAO leverages cutting-edge AI technologies and intuitive no-code interfaces to empower communities in establishing and managing decentralised autonomous organisations (DAOs) with unparalleled efficiency. Committed to revolutionising governance, TMRWDAO stands at the forefront of the movement towards a more transparent, inclusive, and democratically governed digital future.

For more information about Tomorrow DAO, please visit: https://tmrwdao.com

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Type of DAODescription
Protocol DAOCommon in DeFi, these DAOs manage decentralised protocols like lending platforms or exchanges. Protocol DAOs empower community members to influence the development and rules governing these financial ecosystems.
Grant DAOGrant DAOs focus on allocating funds to support projects and initiatives, often driven by community votes. These DAOs are pivotal in encouraging open-source innovation and backing social impact causes within the blockchain community.
Social DAOThese function like digital social clubs but are open to anyone with the required membership token. Social DAOs foster vibrant communities around shared interests, from gaming and art to lifestyle and professional networking.
Investment/Venture DAOInvestment DAOs pool resources to access diverse investment opportunities, allowing participants to collaborate on funding start-up ventures and projects. By sharing the risks and rewards, token holders gain exposure to investment avenues typically reserved for larger institutions.
Entertainment DAOFocused on content creation, curation, and community-driven projects, these DAOs fund and support creators in fields like music, film, and gaming. Entertainment DAOs bring fans and creators closer, enabling them to co-own and shape the media they love.
Collector DAOCollector DAOs unite individuals interested in co-owning high-value collectibles, especially in the NFT space. Through pooled funds, these DAOs acquire, curate, and hold assets, often with members voting on key decisions regarding acquisitions and sales.
Service DAOThese DAOs organise and coordinate groups of professionals to offer decentralised services, from consulting and design to development and marketing. Service DAOs democratise access to talent, giving freelancers and gig workers a way to collaborate and earn within a structured community.
Media DAOMedia DAOs empower content creators and audiences to shape media platforms and publications. Members have a say in editorial decisions, funding, and platform direction. This decentralises media narratives and information distribution.
CategoryType and ExamplesExamples
Governance and decision-makingVoting platformsSnapshot, Tally, Aragon
Proposal management systemsDeepDAO, Sybil, Commonwealth
Treasury ManagementMulti-sig walletsMultis, Safe
DeFi dashboardsZapper, Zerion
Communication and CollaborationCommunity platformsDiscord, Telegram, Discourse
Project management toolsNotion, Asana
Membership & IdentityToken gatingCollab.Land, Guild.xyz
Decentralised identity solutionsCeramic Network, Spruce
Legal & ComplianceLegal frameworks and templatesSnapshot Labs, KaliDAO, Orpheus
Compliance toolsChainalysis, Elliptic
AI toolsAI governanceSingularityDAO, DAOstack, TMRWDAO
Sentiment analysisDeepDAO, Polis, Nansen
Prediction marketsGnosis, Augur