Vitalik Buterin Proposes AI-Powered Governance With Human Oversight

Ethereum co-founder Vitalik Buterin has proposed a governance model that integrates artificial intelligence (AI) while ensuring human oversight.

In a post on X, Buterin outlined how AI could enhance decision-making in decentralized autonomous organizations (DAOs) without concentrating power in a single AI system.

Rather than allowing AI to dictate governance, Buterin suggests using it as an “engine” while humans act as the “steering wheel.” He envisions a system where AI processes large-scale data and makes predictions, while human referees verify and adjust outcomes.

This approach aims to balance efficiency and decentralization, preventing undue influence from any single entity.

Futarchy and AI-Enhanced Predictions

One governance model Buterin highlighted is futarchy, a concept introduced by economist Robin Hanson. Futarchy relies on prediction markets to determine which policies best achieve predefined goals.

Related: Buterin Explores Plutocracy Risks in Token-Based Governance

Participants bet on outcomes, and the market selects the option with the highest expected success rate. AI could enhance this system by analyzing data and making predictions. Then, humans can oversee the process to ensure accuracy and fairness.

Distilled Human Judgement

Another model, distilled human judgment, involves AI answering large numbers of questions while human judges validate a small subset.

This system ensures AI-generated responses align with human standards. It could be used in various applications, like assessing contributions in collaborative projects or moderating online content.

Deep Funding and Decentralized Issuance

Buterin also introduced deep funding, a mechanism that allocates resources based on contribution graphs. This system tracks dependencies between projects and distributes funds accordingly.

Related: Vitalik Buterin Warns of DAO Vulnerabilities, Questions ‘Renting’ Votes

For instance, if a project receives funding, a portion will automatically flow to its upstream contributors. This approach could serve as an alternative to traditional token issuance models, rewarding contributors more fairly over time.

By integrating AI into governance structures while maintaining human oversight, Buterins proposals aim to create a decentralized decision-making system that is efficient, transparent, and resistant to manipulation.

Notably, Buterin, who has always been vocal about DAO governance, warned earlier of vulnerabilities in DAOs. He was particular about governance models that allow vote “renting.” Citing Futarchy, he noted a bribeable layer in the utility function and stressed the need for stronger governance.