Author: Tommy, co-founder of Delphi Digital; Translation: Jinse Finance xiaozou
Fat protocol thesis is antithetical to Crypto x AI.
Meme coins, in their simplest form of application, are accumulating value (attention) because it is easy to fine-tune open source models like Llama and add tokens.
GOAT uses a lot of reddit/4chan data, and we see many copies being released faster than we can refresh the DEX screener. I really don’t know how you degens keep up with the progress.
AI models created through decentralized training, guided by token incentives, will accumulate value as they become the engine of all future applications. These models will be more powerful than centralized models, not weaker, because the global devices combined with unbiased real-time data support the response.
This creates a unique moat: decentralized compute, real-time data feeds, and crypto-native incentives combine to enable training performance that centralized models can’t match. We have no shareholders to appease, and we have longer to build better systems.
Centralized data centers have been optimized for 20 years, decentralized training has only been around for a year, and we already have DiStro and DiLOCO that can reduce communication between nodes by 800-3000 times
Having a decentralized open source AI model - a new world engine - will be the ultimate Schelling point. There is a reason why the underlying logic of these AI Meme Coins does not run on ChatGPT, it can be shut down at any time and is highly restricted, contrary to the spirit of Crypto x AI and cannot be sustained. I think we will not have fully autonomous DeFi agents to create a management ecosystem until we get an AI model to run it through decentralized training, otherwise it may be unplugged, regulated or biased. Think about it, today we are not sure if humans are running these AI Meme Coin accounts. In the future, the results verification inference comes from Inference Labs, IridiumEagle, etc., and the underlying models are developed by Nous Research, Prime Intellect, etc., which are trained with Grass data and extract real-time/uncensored results on GPU networks such as io.net, EXO Labs, or Akash Network.
There are all kinds of niches, for example, in terms of inference, there will be all kinds of whole sub-fields between ZK, OP, TEE, and crypto-economic security design depending on the speed/security needs of your inference requests.
Maybe you'll also use Pond's DeFi model network or RPS Labs' model to power part of your DeFi economy instead of Llama or some random fine-tuned version. Maybe you can use MyShell.ai or 0G Labs operating system to build applications more easily and quickly.
Not sure which model to use? Maybe you'll go to Sentient or Allora Labs or Opentensor to submit a request and then be dynamically routed to the best performing model for a specific task. These coordination networks will provide the best model for a specific task. This is why I'm bullish on billions of specific models that are powered by different open source base models.
Uniswap outsources liquidity provision to these networks or models, while Aave will outsource its risk engine. Use cases will extend to MEV protection, risk assessment, or protocol optimization. Cross-protocol AI agents will be game changers that can optimize the entire DeFi world - imagine an AI that can adjust Aave collateralization while managing Uniswap LP positions and hedge through perpetual futures contracts, all based on real-time market conditions.
Tired of hacks after manually auditing your application? TestMachine's prop AI model will audit your contracts without 3-6 months and without human error. I just can't handle the amount of hacks.
While AI Meme coins are cool, I share these projects to show how early we are and how crazy Crypto x AI will become.
AI Meme Coin actively normalizes Crypto x AI for the masses, but I think people will get bored quickly. People will be more looking forward to use cases, and use cases take time.
● AI endorsed tokens (Terminal of Truth)
● AI self-traded tokens (likely TERMINAL)
● AI created tokens
● AI developed and operated protocols
● AI fully controlled and maintained decentralized economy
The Crypto x AI future is coming, even though it was unthinkable 6-12 months ago. By then, we will develop and own the models that will power applications that create entire ecosystems and economies that are not controlled or influenced by the biases of a few. Are you ready?
Weiliang
