Delphi Digital co-founder: AI-backed tokens are already happening, and related meme coins are accelerating the adoption of crypto x AI
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Delphi Digital co-founder: AI-backed tokens are already happening, and related meme coins are accelerating the adoption of crypto x AI
A future of fully encrypted x AI, with models we build and control ourselves, is now within reach.
Navigating Web3 tides with focused insightsAuthor: Tommy
In the convergence of crypto and AI, the traditional Fat Protocol thesis is being overturned.
Memecoins—the simplest form of application—are accumulating value (i.e., attention) because it's easy to fine-tune open-source models like Llama and add tokens.
GOAT leveraged massive amounts of Reddit and 4chan data, and we’re now seeing copycats emerge faster than we can refresh our DEX screener. I don’t even know how these speculators keep up.
I believe this will change.
Web2 will stop sharing new base models and increasingly bias and restrict them. People will grow tired of generic large language models and begin craving truly crypto-native AI applications.
Right now, Llama is the go-to model for all AI memecoin developers, so we could be impacted if Zuckerberg restricts future releases. Good grief—if Llama has over 700 million users, you need Meta’s permission. Do you think he’ll grant it?
AI models created through decentralized training and bootstrapped by token incentives will accumulate value as they become the core engines powering all future applications. These models will be stronger—not weaker—than centralized ones because we combine global devices with unbiased, real-time data to drive responses.
This creates a unique moat: the combination of decentralized compute, real-time data streams, and crypto-native incentives makes our training capabilities unmatched by centralized models. We have no shareholders to please, so we can take a longer time horizon to build better systems.
Centralized data centers have had 20 years of optimization, while decentralized training has only been underway for about a year—but we already have DiStro and DiLOCO technologies that reduce inter-node communication by 800x to 3000x.
Owning a piece of a decentralized, open-source AI model—the new world engine—will become the ultimate focal point.
There’s a reason these AI memecoins aren’t running on ChatGPT. ChatGPT could be shut down at any moment and comes with heavy restrictions—completely contrary to the ethos of crypto x AI and unsustainable in the long run.
I believe fully autonomous DeFi agents capable of creating and managing ecosystems will only become possible when powered by an AI model trained via decentralized means. Otherwise, they risk being unplugged, regulated, or biased.
Think about it: today, we aren't even sure whether these AI memecoin accounts are operated by humans. In the future, you'll be able to obtain results via verifiable inference from labs like @inference_labs and @IridiumEagle, relying on foundational models trained on data provided by @getgrass_io (e.g., @NousResearch, @PrimeIntellect), and delivering real-time, uncensored outputs via GPU networks such as @ionet, @exolabs (clusters), or @akashnet_.
These domains are becoming increasingly specialized. In inference, sub-sectors will emerge around ZK, OP, TEE, and cryptoeconomic security designs depending on your needs for speed and safety.
You might choose to power your DeFi economy with a DeFi-specific model network from @PondGNN, or use a tailored model from @RPS_Labs, rather than relying on Llama or some random fine-tuned variant. You may use @myshell_ai to build apps more easily and quickly, or leverage an operating system like @0G_labs.
If unsure which model to use, you can query @sentient_agi, @AlloraLabsHQ, or @opentensor, which will dynamically route your task to the best-performing model. These coordination networks are pure merit-based systems that surface optimal models for specific needs. That’s why I’m confident in billions of specialized models driven by a diverse set of open-source base models.
Uniswap will outsource liquidity provisioning to these networks or models, and Aave will outsource its risk engine. Use cases will expand into MEV protection, risk assessment, and protocol optimization. The real game-changer will be cross-protocol AI agents capable of optimizing the entire DeFi ecosystem—imagine an AI simultaneously managing Uniswap’s liquidity pool positions, adjusting collateral ratios on Aave, and hedging via perpetual futures—all based on real-time market conditions.
Tired of getting hacked despite manual audits?
@testmachine_ai's prop AI model can audit your contracts without waiting 3–6 months or risking human error. I just can’t take any more hacks. While AI memecoins are fun, I’m sharing these projects to show we’re still early—and how wild crypto x AI will get.
Below is my crypto x AI flowchart from May 2024:
AI memecoins have gradually acclimated the public to crypto x AI, but I think people will soon grow tired of rapid forking. They’ll start demanding real utility—and that takes time.
1 -> AI-powered tokens (The Truth Terminal has arrived)
2 -> AI auto-trading tokens (Perhaps the Terminal)
3 -> AI creating tokens
4 -> AI building and operating protocols
5 -> AI fully controlling and sustaining decentralized economies
While this was taboo just 6–12 months ago, a fully realized crypto x AI future—one where we build and control our own models—is now within reach. These models will power applications, generate entire ecosystems and economies, and no longer be controlled or biased by a handful of people in San Francisco. Get ready.
For more content, check out @Delphi_Digital’s monthly crypto x AI video series, powered by @autonolas.
Disclosure: Many exciting companies mentioned are part of @Delphi_Ventures’ portfolio—feel free to reach out to them for partnerships!
I may hold tokens mentioned in this post. There are many reasons this thesis could fail or evolve—I’ll write another thread on that later. I acknowledge AI memecoins are extremely high-risk; you may lose your entire principal in most cases.
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