A New Perspective on Incentivizing AI Developers
Since the breakthrough moment of generative artificial intelligence (AI) in 2022, there has been significant talk about AI and crypto technologies being a perfect pair. One solves the critical issues of the other – AI’s proliferation of fake images can be solved through blockchain verification, while protocol threats can be detected with AI. Despite the heightened interest and experimentation in both fields, the ‘AI-blockchain killer use case’ remains elusive.
The Elusive Partnership
Many ambitious AI blockchain projects have faltered, despite being good ideas and valuable products. The critical issue these companies face is twofold: convincing AI developers to spend their time developing on a specific network and incentivizing them to stay once they’re on board. To avoid the fate of these failed ventures, it’s essential to reassess our perspective on what incentivizes AI developers.
Misguided Incentives in Decentralized AI
Incentivization aligns user behavior with product goals. A financially driven rewards structure works well in traditional crypto sectors and consumer Web3 products but not so much for AI. Crypto was built as an alternative to Traditional Finance (TradFi), while AI wasn’t envisioned through the same financial lens. Financial rewards don’t work in AI because they don’t resonate with AI developers’ core motivations.
The Core Motivations of AI Developers
AI developers are pure technologists who believe they’re on the bleeding edge of a seismic societal shift. What they’re building will inform the future, so they do what they do not to get paid. If they think they’re creating infrastructure that’ll influence the world economy, much like we saw with Web2, the marginal financial gain through tokenomics is likely not an enormous appeal.
The Skepticism of AI Developers towards Crypto
AI developers are also notably skeptical of crypto’s shill side. It has an unfortunate reputation for being a center of scammers, with almost 40% of Americans not at all confident in the trustworthiness of cryptocurrencies, despite only 7% ever having traded any. The reputation of crypto as volatile, with the potential for scams, makes it unappealing to many AI developers, who generally view their work as too essential to be subject to infrastructure failures or security breaches.
From Compensation to Contribution
AI developers view their work as a calling that influences society. They seek to be part of history, gaining recognition by contributing to significant technological advancements. Innovation thrives in settings that promote idea-sharing and collaboration. Financial remuneration can and should exist but not at the forefront as per crypto projects.
Shifting the Narrative
To build a robust team of developers for the right reasons, move away from tokenomics and financial incentives that often alienate talent and create a culture of collaboration with a clear vision and values and meaningful engagement opportunities. That is a unique differentiator in itself in an industry that’s both saturated and calling for change.
Effective Incentive Structures
Traditional token-based rewards misunderstand what drives AI developers and risk derailing promising AI-blockchain partnerships before they can mature. These incentive structures can include those that emphasize collaboration, recognition, and long-term societal impact, all essential to meeting the unique motivations of the not-yet-tapped AI development community.
Decentralized AI as a Transformative Movement
Decentralized AI can position itself as a transformative movement by emphasizing purpose-driven incentives, such as collaboration, recognition, and a shared vision for societal change. Decentralized AI harnesses two of the most significant technological innovations of modern times – blockchain and AI.
The Future of Decentralized AI
The global blockchain AI market is expected to reach $3.718 billion by 2033. This decade is up for the taking, and it’s time to create more effective incentive structures that resonate with the core motivations of AI developers. By doing so, we can unlock the true potential of decentralized AI and make it a transformative force in society.
Conclusion
Decentralized AI has the potential to revolutionize various industries and aspects of our lives. However, its success relies heavily on creating effective incentive structures that resonate with AI developers’ core motivations. It’s time to move away from tokenomics and financial incentives that alienate talent and create a culture of collaboration with a clear vision and values.
About the Author
Dr. [Name] is an early innovator in AI/crypto, co-founding Algovera in 2021. He is a co-founder and the chief scientific officer of Naptha.AI, a platform that orchestrates multiple AI agents to optimize performance and drive innovation.
Disclaimer
This article is for general information purposes only and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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