In a thought-provoking blog post titled “Moai,” Arthur Hayes, co-founder of the renowned crypto exchange BitMEX, continues to delve into the potential impact of Artificial Intelligence (AI) on the future of economic organization and the role of Ethereum. Hayes predicts that the rise of AI-driven Decentralized Autonomous Organizations (DAOs) will revolutionize the global economy and drive Ethereum to even greater heights.

The Pervasive Role of DAOs in the AI Era

Hayes reiterates that the remarkable economic progress and per capita wealth of global civilization can be largely attributed to the efficient self-organization of human societies. While traditional company structures have been the bedrock of economic development, he emphasizes their shortcomings when it comes to AI-powered entities.

He elaborates, “AI has no incentive to abide by any laws. It cannot be coerced by the state, making exchanges that trade tokens issued by AI-powered DAOs likely to become natural monopolies.”

DAOs, built upon smart contracts executed on public blockchains like Ethereum, offer the ideal organizational structure for AI-driven entities, providing transparency, immutability, and cryptographic verification of transactions and agreements. Consequently, DAOs can operate efficiently and securely without relying on third-party intermediaries or costly auditing processes.

Hayes envisions a future where AI-powered DAOs raise capital and trade their tokens on decentralized exchanges (DEXs) on Ethereum, rather than traditional centralized exchanges. This evolution would create truly global capital markets accessible to anyone with an internet connection. As a result, DEXs are expected to become natural monopolies, owing to their advantages in trust, security, and ease of use.

An Illustrative Example : The “PoetAI” DAO

To illustrate the concept further, Hayes presents a hypothetical example of “PoetAI,” an AI-powered DAO aiming to raise funds and produce original poetry for profit. PoetAI could issue its tokens, called “POET,” through a smart contract with specific attributes such as revenue sharing and voting mechanisms. Investors can confidently invest in PoetAI DAO knowing that its financial statements are continuously available on the public blockchain, thereby eliminating the need for traditional auditors.

Time Traveling Economics and Smart Contracts

Hayes explains that DAOs can raise capital by issuing debt, enabling economic “time travel” by borrowing from the future to stimulate present economic activity. The enforceability of contracts within DAOs is facilitated through smart contracts on public blockchains, ensuring that investors’ interests are protected.

Ethereum’s Bull Case

In conclusion, Hayes predicts that as DAOs proliferate, Ethereum transactions will experience exponential growth, driving the price of ETH to soaring heights. He suggests that identifying and investing in Ethereum-based governance tokens of DEXs facilitating AI-driven DAO trading can lead to significant profits. Furthermore, middleware layers that enable visualization of AI DAO accounts will be instrumental in ensuring the seamless functioning of these capital markets.

Hayes’ visionary ideas represent a compelling case for the potential disruptive power of AI-driven DAOs. As one of the great thinkers in the crypto space, his thesis continues to capture attention and imagination.

At the time of writing, the Ether (ETH) price stands at $1,863, showing continued resilience and upward momentum in the market.