Since the breakthrough moment of generative artificial intelligence in 2022, there has been a buzz about the perfect pairing of AI and crypto technologies. One field can solve the critical issues of the other, it was proposed that blockchain verification can tackle AI’s proliferation of fake images, while AI can detect protocol threats. Despite increased interest and experimentation in both fields, the ‘AI-blockchain killer use case’ remains elusive.
Many ambitious AI-crypto projects have failed to make a lasting impact. That is not because their products weren’t valuable or good ideas; rather, the critical issue these companies face is two-fold:
- Convincing AI developers to spend their time developing on a specific network: It’s essential for project teams to persuade top AI talent to join and contribute to their initiatives.
- Incentivizing developers to stay and continue working once they’re on board: Project leaders must find ways to keep these developers engaged and motivated in the long term.
To avoid the fate of failed ventures, it’s time to reassess our perspective on what incentivizes AI developers. We need to stop thinking about financial rewards and start considering how their technology might change the world.
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 TradFi, whereas AI wasn’t envisioned through the same financial lens.
Financial rewards don’t work in AI because they do not resonate with AI developers’ core motivations. These technologists believe they’re on the bleeding edge of a seismic societal shift and are driven by a desire to create infrastructure that will influence the world economy. They view their work as too essential to be subject to infrastructure failures or security breaches.
The reputation of crypto as volatile and scam-prone makes it unappealing to many AI developers, who prioritize collaboration, recognition, and long-term societal impact over financial gains.
From Compensation to Contribution
AI developers see their work as a calling that influences society. They seek to be part of history and gain 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 from immediate financial gains to the broader implications of their work can attract developers to invest their talents in decentralized projects.
A New Approach: Collaboration, Recognition, and Shared Vision
To build a robust team of developers for the right reasons, move away from tokenomics and financial incentives that often alienate talent. Create a culture of collaboration with a clear vision and values, and meaningful engagement opportunities. This is a unique differentiator in an industry that’s both saturated and calling for change.
A More Effective Incentive Structure
Token-based rewards misunderstand what drives AI developers and risk derailing promising AI-blockchain partnerships before they can mature. 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. The global blockchain AI market is expected to reach $3.718 billion by 2033. This decade is up for the taking.
Conclusion
To succeed in the field of decentralized AI, it’s time to create more effective incentive structures that prioritize collaboration, recognition, and long-term societal impact. By doing so, we can unlock the full potential of this transformative movement and change the world.
Dr. Richard Blythman worked as an ML engineer in Big Tech and as a postdoctoral AI researcher at university. He is an early innovator in AI/crypto, co-founding Algovera in 2021. He is a co-founder and chief scientific officer of Naptha.AI, a platform that orchestrates multiple AI agents to optimize performance and drive innovation.
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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