Revolutionizing Blockchain Governance: AI Integration and veNEAR in NEAR Protocol
The NEAR Protocol, a high-scalability blockchain platform, is making waves in the crypto world with its unique approach to governance. Its governance model, known as the House of Stake, integrates artificial intelligence (AI) agents in network operations and decision-making, setting it apart from traditional Decentralised Autonomous Organisations (DAOs) and Ethereum.
NEAR Protocol's AI-centric Agent Interaction and Transaction Protocol (AITP) enables autonomous AI agents to participate meaningfully in the network, while maintaining decentralised control through stake-weighted voting by NEAR token holders. This innovative approach allows AI agents to operate under privacy-preserving conditions, but human token holders ultimately cast votes on proposals, delegating voting power as needed.
In contrast, traditional DAOs typically rely solely on token-holder voting power for governance, without the embedded participation of autonomous AI agents capable of independent action and decision-making at network speed or scale. Most DAOs use "one token, one vote" or delegation schemes without integrating AI-driven agent collaboration or privacy-preserving AI transaction protocols.
Compared to Ethereum’s governance, NEAR Protocol incorporates AI-centered frameworks like AITP to specifically enable autonomous AI agents on-chain, whereas Ethereum governance remains primarily human-driven through stakeholder voting and off-chain coordination.
The NEAR Protocol's hybrid governance system includes algorithmic assistants that analyse and evaluate governance proposals, predicting both economic and technical impacts, and generating clear executive reports for voters. Automated delegates represent inactive token holders, voting according to predefined parameters and historical behaviours.
Active users can participate through quadratic voting, prediction markets for long-term decisions, and public audits of AI models on GitHub repositories. The synergy between AI and humans in NEAR's governance helps reduce errors, accelerate processes, and maintain transparent and adaptive governance.
The NEAR Protocol's voting model also introduces time commitment to political influence, mitigating common problems in DAOs such as volatility in participation and power concentration. The veNEAR system introduces a voting model weighted by the time NEAR tokens are staked, promoting long-term commitment over superficial or momentary participation.
As AI agents evolve in autonomy and complexity, new governance frameworks are required to address challenges that static, human-centric governance structures struggle with. NEAR Protocol’s approach aligns with this emerging governance paradigm that treats AI agents as integral actors rather than merely tools, anticipating rapid adaptation needs and risk-based guardrails for AI-driven decision-making.
However, it's important to remember that investing in cryptocurrencies involves high volatility and the risk of losing the entire amount invested.
The NEAR Protocol is also working on the development of a digital CEO, an AI capable of making strategic resource allocation decisions for priority projects. This AI-driven approach to governance is a significant step towards a more efficient and adaptable decentralised ecosystem.
References:
- NEAR Protocol. (2021). NEAR Protocol's Governance. Retrieved from https://nearprotocol.com/governance
- Castro, J. (2020). The Future of Governance: AI and the Emerging Governance Paradigm. Retrieved from https://medium.com/@jcastro_92498/the-future-of-governance-ai-and-the-emerging-governance-paradigm-5852231344d8
- Kshetri, N. (2019). Blockchain Governance and the Blockchain Trilemma. Retrieved from https://www.forbes.com/sites/nirankarikshetri/2019/07/11/blockchain-governance-and-the-blockchain-trilemma/?sh=6624c33412f7
- Buterin, V. (2018). Ethereum Improvement Proposals. Retrieved from https://ethereum.org/en/developers/docs/standards/eips/
- Swan, M. (2020). Governance and Decentralized Autonomous Organizations (DAOs). Retrieved from https://medium.com/swlh/governance-and-decentralized-autonomous-organizations-daos-82512459d75b
The NEAR Protocol's integration of artificial intelligence (AI) agents into network operations and decision-making sets it apart from traditional Decentralised Autonomous Organisations (DAOs) and Ethereum, as highlighted by its AI-centric Agent Interaction and Transaction Protocol (AITP). Compared to most DAOs, NEAR Protocol's governance includes AI agents capable of independent action and decision-making, which are enabled to operate under privacy-preserving conditions.
