Vitalik Buterin: The AI Revolution in DAO Management

Ethereum co-founder Vitalik Buterin stated that artificial intelligence could make decentralized governance models more efficient and enable users to make more informed decisions. In his X post, he emphasized that one of the main problems in democratic systems like DAOs is human attention limits; he expressed that numerous decisions requiring expertise or time cannot be managed by most people. He said that the traditional delegation solution concentrates power in small groups and causes supporters to lose influence.

Source: Vitalik Buterin

Vitalik Buterin’s DAO Problem Diagnosis

Buterin noted that average participation rates in DAOs are between 15-25 percent, stating that this could lead to power concentration and malicious attacks. This situation also affects the value loss of governance tokens in the ETH ecosystem. With the ETH price dropping %60 in the last 6 months, the pressure seen in ETH detailed analysis is making DAO decisions more critical; for example, institutional losses like Bitmine’s 8,8 billion dollar unrealized loss are shaking governance confidence.

Solution with Personal LLM Assistants

As a solution, he suggested personal assistant large language models (LLM); these models can vote according to preferences derived from the user’s writings, conversation history, and direct statements. When unsure, they can ask the user a question along with the context. For sensitive topics, he advocated protecting privacy by having personal LLMs evaluate private information within a black box and share only the judgment. This approach could increase voting efficiency in ETH-based DAOs by up to 50%.

DAO Impact on ETH Market and Current Data

ETH is currently at 1.906,92 USD, with a 24-hour change of -%2,05. RSI at 32,14 is in oversold territory, but the downtrend continues. Institutional interest persists; Turkish Net Holding ranks 74th among major holders with 352 BTC. This adds optimism to the future of ETH DAOs.

AI Digital Twins from NEAR Foundation

Near Foundation researcher Lane Rettig had also told Cointelegraph that they are working on similar AI-supported digital twins. This development in NEAR futures could accelerate ETH-NEAR integration. Technically, it could signal recovery above EMA 20 (2.088,85).

Technical Risk Analysis for ETH DAOs

With the Supertrend bearish signal, the risk of delays in DAO voting is increasing. LLM integration could balance power distribution by increasing participation by 30%. For followers of ETH detailed analysis, a R1 (1.959) breakout could trigger a bullish period.

The Future of AI Governance and Privacy

Buterin’s vision aligns with ETH 2.0 updates; black box LLMs prevent data leaks. By 2026, it could become standard in DAOs, providing resilience against market volatility.