In a recent proclamation, the co-founder of BitMEX, Arthur Hayes, has envisaged an era in which Artificial Intelligence (AI) will evolve to harness public blockchains such as Ethereum, turning to Decentralised Autonomous Organisations (DAOs) for their organization.

Blockchain technology, the encapsulating force behind digital currencies such as Bitcoin and Ethereum, has been drawing increasing global interest, promising to revolutionize various sectors beyond finance, i.e., healthcare, supply chain, and education, by enabling transparency, security, and traceability of all transactions. The concept of Decentralised Autonomous Organisations (DAOs) has emerged as an integral part of this wave of blockchain revolution.

DAOs are essentially blockchain-based, digital entities that operate through smart contracts and exist independently of any singular influence or control. The organization records rules, transactions, and other forms of participation on a blockchain, denying any singular entity control over the business.

Lately, the intersection of blockchain technologies and artificial intelligence has been proposed as a pathway to enhance the capabilities of both technologies. Arthur Hayes, the co-founder of BitMEX, a cryptocurrency exchange and derivatives trading platform, is among those who see the potential in this intersection.

Hayes shared his insights in a recent blog post titled “Digital Humans,” where he forecasted a world where AIs would utilize public blockchains, specifically DAOs, for organization, recording, and audit purposes. His prediction suggests that AIs, given their capabilities to learn, evolve, and make decisions, could turn into digital entities that would require a transparent, tamper-proof mechanism for their operations.

AI, with its significant potential to disrupt established norms and ways of operation, brings about challenges concerning privacy, security, and control. The inherent characteristics of DAOs, concerning decentralization and transparency, provide a model for AI to follow in ensuring its operations maintain similar standards.

“Rather than be implemented via code on a server controlled by humans, these AIs will use decentralized autonomous organization (DAOs) structures to raise funds, hire humans to do tasks AIs cannot, and upgrade and defend themselves,” Hayes wrote.

Hayes’s assertion brings to light the probable future symbiosis between AI and blockchain technology, specifically through DAOs. In this vision of the future, AIs could raise funds, hire people to perform tasks they cannot, and upgrade and defend themselves, all within a secure and transparent framework provided by the public blockchains.

In conclusion, the intersection of AI and blockchain, specifically DAOs, could lead to a new era of digital automation. AIs will evolve beyond human control, capable of conducting business in a transparent and efficient manner, significantly reducing the risk of fraudulent activity and enhancing the overall security. While this future may still be far away, the concept presents fascinating possibilities and exciting challenges in our pursuit of technological advancement


AIs will organize using DAOs on public blockchains like Ethereum, says BitMEX co-founder Arthur Hayes Monika Ghosh · 24 hours ago · 2 min read

Hayes believes that Ethereum price will ‘skyrocket’ as AI-powered DAOs proliferate and boost on-chain transaction volume.

2 min read

Updated: July 30, 2023 at 5:18 pm

Cover art/illustration via CryptoSlate

Arthur Hayes, the co-founder of crypto exchange BitMEX, believes artificial intelligence (AIs) will use decentralized autonomous organizations (DAOs) to organize themselves. In a blog post, Hayes wrote:

“The DAO structure will allow AIs and humans to collaborate and serve as the organisational structure that allows the AI + human economy to grow and flourish.”

Since companies need to register with the government, they cannot exist or operate without compliance with the laws, Hayes explained. So, to “ensure it isn’t beholden to human laws, the AI cannot use any form of organization that depends on the state to function,” he wrote.

Therefore, AIs will only follow rules written in “transparent, public computer code” and immutable, like smart contracts used by DAOs and deployed on public blockchains, allowing anyone to inspect the code. Without such contracts it would not be possible to prove or even realize if an AI is violating the terms of a transaction, Hayes wrote.

Furthermore, Hayes predicted that AI-powered DAOs will use decentralized exchanges (DEXs) to raise funds by issuing tokens, overcoming the fundraising challenges faced by traditional companies. Therefore, the DAO capital markets will become the “first truly global markets” and DEXs that facilitate the trading of tokens created by DAOs will emerge as monopolies, he wrote, adding:

“The AIs who create DAOs cannot be coerced by the state, and therefore, exchanges that trade all flavors of tokens created by DAOs will likely become natural monopolies.”

A “handful of DEXs” will enjoy monopoly status over trading specific types of tokens. Investors who can identify such DEXs and purchase their governance tokens are likely to earn “beaucoup profits,” he believes.

He added that middleware layers would “help visualize the accounts of AI DAOs” and become crucial to the “well-functioning AI DAO capital markets,” he added.

However, Hayes said his prediction does not spell the end for centralized exchanges (CEXs). On the contrary, he believes that some people and entities will always prefer and remain loyal to CEXs.

Ethereum prices are set to ‘skyrocket’According to Hayes, no blockchain, no matter how similar it is to Ethereum, “will ever eclipse Ethereum in terms of adoption and usefulness.” It is worth noting, however, that Hayes is a self-proclaimed Ethereum maximalist. 

Ethereum would be the most obvious choice for AIs to deploy DAOs since Ethereum Virtual Machines are the “most widely used,” Hayes claimed. As DAOs proliferate, Ethereum transactions will “grow exponentially,” largely driven by the increasing trading volumes on DEXs, which would boost ETH prices.

He noted:

“As a result, the price of ETH should skyrocket in anticipation if this AI DAO hypothesis is widely believed.”

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