Author:Tommy
In the convergence of encryption and AI, the traditional fat protocol theory has been overturned.
Memecoins are the simplest application form, and they are accumulating value (i.e. attracting attention) as they can easily fine-tune open-source models like Llama and add Tokens.
GOAT has utilized a large amount of reddit and 4chan data, and we see the speed of many imitators appearing is even faster than the speed at which we refresh the DEX screener. I really don't know how these speculators keep up.
I believe this situation will change in the future.
Web2 will stop sharing new base models and will increasingly bias and restrict them, and people will also get tired of the basic large language models and will crave AI applications that are truly integrated with encryption.
Currently, Llama is the model of choice for all AI Memecoin developers, so we may be affected by Zuckerberg's restrictions on the release of future versions. Goodness, if Llama's user base exceeds 700 million, you need to get permission from Meta. Do you think he will agree?
AI models created through decentralized training, powered by Token incentives, will accumulate value as they become the core engines of all future applications. These models will be more powerful, not weaker, than centralized models, as we combine global devices with unbiased real-time data to drive responsiveness.
This creates a unique moat: the combination of decentralized computing, real-time data streams, and crypto-native incentives makes our training capabilities unmatched by centralized models. We have no shareholders to please, so we have a longer time horizon to build better systems.
Centralized data centers have 20 years of optimization experience, while decentralized training has just started a year, and we already have DiStro and DiLOCO technologies that reduce node-to-node communication by 800 to 3000 times.
Owning a piece of the decentralized open-source AI model, this new world engine, will be the ultimate focus.
There is a reason why the basic logic of these AI Memecoins does not run on ChatGPT. ChatGPT can be shut down at any time and has many restrictions, which is completely contrary to the idea of encrypted x AI, and cannot exist sustainably.
I believe that only when we obtain an AI model through decentralized training to run it can we achieve a fully autonomous DeFi intelligent agent to create and manage the ecosystem. Otherwise, it may be unplugged, regulated, or biased.
Imagine, today we are not even sure if these AI Memecoin accounts are run by humans. In the future, you will be able to obtain results through verified reasoning (such as @inference_labs and @IridiumEagle), which depend on the base models trained on the data provided by @getgrass_io (such as @NousResearch and @PrimeIntellect), and obtain real-time and uncensored results through the GPU network of @ionet, @exolabs (clusters), or @akashnet_.
These areas are becoming increasingly diversified. In the field of reasoning, ZK, OP, TEE, and crypto-economic security designs will form their own sub-fields based on your speed and security requirements for reasoning requests.
You may choose to use the DeFi model network provided by @PondGNN, or the specific models of @RPS_Labs to support your DeFi economy, rather than relying on Llama or other randomly fine-tuned versions. You may also use @myshell_ai to build applications more easily and quickly, or achieve this through the operating system of @0G_labs.
If you are unsure which model to use, you can make a request to @sentient_agi, @AlloraLabsHQ, or @opentensor, and they will dynamically guide you to the best-performing model to complete the task. These coordination networks are completely capability-based systems that can demonstrate the optimal model for specific needs. So I am confident in the billions of specialized models driven by diverse open-source base models.
Uniswap will outsource liquidity provision to these networks or models, and Aave will outsource its risk engine. Application scenarios will expand to MEV protection, risk assessment, and protocol optimization. The real game-changers will be cross-protocol AI agents that can optimize the entire DeFi ecosystem - imagine an AI that can simultaneously manage Uniswap's liquidity pool positions, adjust Aave's collateral ratios, and hedge through perpetual futures, all based on real-time market conditions.
Tired of still being hacked after manual audits?
@testmachine_ai's prop AI models can audit your contracts without waiting 3-6 months and avoiding human errors. I really can't bear any more hacks. Although AI memecoins are interesting, I share these projects to show that we are still in the early stages, and how crazy encrypted x AI will become.
Here is a diagram I drew of the encrypted x AI process in May 2024:
1 -> AI-supported Tokens (the truth terminal has arrived)
2 -> AI-automated Token trading (perhaps the terminal)
3 -> AI-created Tokens
4 -> AI-built and operated protocols
5 -> AI fully controls and maintains the decentralized economy
Although it was taboo 6-12 months ago, a complete encrypted x AI future that we build and control ourselves is already within reach. These models will drive the development of applications, creating complete ecosystems and economies, no longer controlled or biased by the few in San Francisco. Get ready for this future.
For more content, check out the encrypted x AI monthly video content from @Delphi_Digital, supported by @autonolas.
Disclosure: Many of the exciting @Delphi_Ventures portfolio companies mentioned in the text are welcome to be contacted for collaboration!
I may hold the Tokens mentioned in the text. There are many reasons why this theory may fail or change, and I will write another post to discuss it. I note that AI memecoins have extremely high risks, and you may lose your entire principal in most cases.
