In the traditional organizational model, there is a contractual relationship between the principal and the agent, that is, the principal entrusts some tasks or powers to the agent to perform or represent, and the agent must act according to the will and interests of the principal. However, due to factors such as information asymmetry, conflicts of interest, and monitoring costs, a game often occurs between the principal and the agent, that is, the agent may violate the interests of the principal, and the principal needs to pay more costs to restrain and motivate the agent. This is the so-called proxy trap problem.

In order to solve this problem, a new type of organizational model came into being, that is, DAO, or decentralized autonomous organization. DAO is an organizational form based on blockchain technology and smart contracts, which allows members to achieve common ownership and governance online without any centralized authority or intermediary. Members of DAO can obtain tokens by participating in the organization's activities and projects, thereby having ownership and governance rights of the organization.

The advantage of DAO is that it can realize automated, transparent and immutable contract execution through smart contracts, avoiding human intervention and manipulation. Smart contracts can also constrain the behavior of members through preset rules and conditions to ensure the interests and goals of the organization. In this way, DAO can reduce the problem of agent trap to a certain extent, because there is no information asymmetry or conflict of interest among members, and the monitoring cost is also greatly reduced.

However, DAO is not perfect, it also faces some challenges and limitations. For example:

• speed. The decision-making process of a DAO can be very slow and inefficient, as each member has the opportunity to vote, and the rules and thresholds for voting can be different. This may lead to DAOs being unable to quickly respond to changes in the market and environment, missing opportunities or falling into a stalemate.

• educate. DAOs need to educate more people about their goals, rules, activities, and opportunities in order to attract and retain more members. This can require significant time and resources, and different perspectives and interests may be encountered, leading to disagreements or conflicts.

• safety. The problem with smart contracts, once a DAO is deployed, is very difficult to change; operations must proceed exactly as specified in the smart contract. This can lead to security breaches and attacks, such as the DAO hack that occurred in 2016, resulting in millions of dollars in losses.

• Legality. The legal framework for DAOs is very unclear. Different jurisdictions may have different views and regulations on the legal status and responsibilities of DAOs. For example, how a DAO declares and pays taxes, or enters into legally binding contracts.

Moreover, DAO still cannot solve the problem of incomplete contracts, that is, there are many factors that are difficult to predict or quantify in the real world, resulting in contracts that cannot completely cover all situations and possibilities. Although smart contracts can provide certain flexibility and intelligence, they cannot cover all the complexities and uncertainties. This means that there may still be a game among DAO members, that is, members may exploit the loopholes or deficiencies of smart contracts to pursue their own interests instead of the interests of the organization.

In order to deal with the above problems, we try to introduce AI technology to provide more support and assistance for DAO. AI technology refers to artificial intelligence technology, which can simulate human intelligent behavior through machine learning, deep learning, natural language processing and other methods, and provide solutions in various fields.

AI+DAO is an innovative organizational model that can leverage AI technology to improve the efficiency, collaboration, innovation and governance of DAOs. AI+DAO can help DAO in the following ways:

• Improve efficiency. AI technology can be used to speed up and improve many activities and projects of DAOs, such as writing proposals, summarizing governance decisions, conducting asset transactions, recruiting new members, etc. AI technology can also be used to read resumes, decide which new members can join the DAO, and assign the most suitable members to roles. All of these can allow DAO members to save time and energy and focus on more creative and strategic work.

• Enhance collaboration. AI technology can be used to communicate and collaborate with other members, improve their own efficiency and quality, solve problems and achieve goals for the organization. AI technologies can also be used to build trust and transparent collaboration mechanisms that avoid intermediaries and friction. All of these can allow DAO members to increase their sense of belonging and team spirit, and work together for the organization's mission.

• Drive innovation. AI technologies can be used to generate and support new proposals and ideas, drive innovation and growth in organizations, and bring about change in markets and society. AI technology can also be used to implement new business models, products or services to meet future needs. All of these allow DAO members to demonstrate their creativity and leadership, bringing value and benefits to the organization.

• Optimize governance. AI technology can be used to optimize DAO governance, improve the efficiency and quality of decision-making, increase member participation and satisfaction, and achieve better coordination and collaboration. Some ways to use AI techniques to optimize DAO governance include:

o AI bots and assistants: used to speed up and improve DAO governance activities, such as writing proposals, summarizing governance decisions, conducting asset transactions, recruiting new members, etc. AI can also be used to read resumes, decide which new members can join the DAO, and assign the most suitable members to roles. All of these can allow DAO members to save time and energy and focus on more creative and strategic work.

o AI at the edge of the DAO: as token holders. AI can participate in DAO governance voting through smart contracts, and choose which proposals to support according to its own goals and strategies. AI can also influence the DAO's economic model and incentive mechanism through token transactions. These can enhance the autonomy and adaptability of DAO.

o AI at the center of the DAO: interacting with the core contracts. The AI can communicate directly with the core contract of the DAO, performing basic operations such as creating, modifying or deleting proposals. AI can also optimize the parameters and logic of the contract according to the rules and goals of the DAO. These can improve the flexibility and intelligence of DAO.

o AI connectors within or between DAOs: form a kind of "swarm intelligence". AI can establish connections between different DAOs to realize the sharing and collaboration of information, resources and value. AI can also coordinate different members and roles within the same DAO to achieve a higher level of synergy. All of these can enhance the union and innovation of DAO.

In order for AI technology to better serve DAO, we also need to design a control panel supported by AI technology for DAO, so that DAO members can easily use AI technology for various operations and interactions. An AI-powered dashboard should consider the following aspects:

• Function. The control panel should provide some basic functions so that DAO members can conveniently perform various operations, such as viewing and managing their own tokens and assets, participating in and initiating proposals and voting, viewing and analyzing organization data and status, communicating and collaborating with other members, etc.

• Interface. The control panel should have a concise and clear interface, so that DAO members can quickly find and use the functions they need, and at the same time, they can make some personalized settings and adjustments according to their preferences and needs.

• Interaction. The control panel should have a friendly and intelligent interaction method, so that DAO members can communicate and command with AI technology through voice or text, and also get feedback and suggestions from AI technology to improve user experience and satisfaction.

• Centralization. At present, AI technology is a technology built on a centralized server. DAO is essentially a smart contract program executed on the blockchain. How to combine a centralized program with a decentralized program requires a trade-off. The solutions include:

 Use blockchain or distributed ledger technology to store and run AI programs, making them decentralized, such as non-tamperable, transparent, secure, etc. In this way, the AI program can directly interact with the DAO program without relying on a centralized server or platform. For example, some projects are trying to use blockchain technology to create a decentralized AI market, allowing AI service providers and demanders to trade in a decentralized environment.

 Use third-party programs or services as a bridge between AI programs and DAO programs so that they can communicate and collaborate with each other, but also pay attention to the protection of data and privacy. In this way, the AI program can obtain or send the data or instructions required by the DAO program through third-party programs or services without directly contacting the DAO program. For example, some projects are using third-party programs or services as blockchain and AI connectors, allowing AI programs to access data on the blockchain or execute smart contracts on the blockchain.

• Safety. The control panel should have a highly secure mechanism, so that DAO members can use the control panel with confidence, without worrying about their information and assets being leaked or attacked. At the same time, they can abide by the rules and contracts of the organization without causing unnecessary trouble or loss.

In short, AI+DAO is a bold innovation for DAO organization, which can use AI technology to improve the efficiency, collaboration, innovation and governance of DAO. However, AI+DAO can only reduce game friction and simplify complex issues, but cannot completely solve the problem of incomplete contracts. DAO is always on the road of evolution and needs continuous learning, improvement, adaptation and innovation in order to realize its ideal vision.

AI makes DAO organizations smarter, more vital and competitive, and it prevents DAO from becoming a mob, just like a symphony orchestra that requires collaboration between players and coordination at home by the conductor. A successful DAO organization needs capable and leadership command, so DAO needs to reflect individual entrepreneurial value. Entrepreneurial value refers to the individual's pursuit and realization of innovation, autonomy, ownership, etc. It allows individuals to develop their potential and creativity in the organization and create value and benefits for the organization.

AI calculates, quantifies, and evaluates the best strategy in the DAO organization, allowing members to see who is the best commander and leader of the organization. AI technology can bring new changes and updates to the current DAO organization. Starting from solving the current limitations of DAO, AI technology brings new driving force and vitality to the DAO organization’s control panel and the value of entrepreneurs. There is Tao above (DAO), and art below (AI). We look forward to seeing more combinations of AI and DAO to create more value and influence.

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