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Vitalik Buterin Outlines How AI Could Strengthen Decentralized Governance

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TLDR:

  • Vitalik Buterin argues AI used correctly can empower democratic governance rather than centralize control over it.
  • Personal AI agents could vote on a user’s behalf by learning from their writing, history, and stated preferences.
  • Public conversation tools can aggregate views across many participants before asking them to weigh in on decisions.
  • Multi-party computation allows private governance decisions without exposing sensitive data to any single participant.

AI governance is at the center of a fresh discussion sparked by Ethereum co-founder Vitalik Buterin. He argues that AI, when applied correctly, can push democratic and decentralized governance forward rather than replace it.

His post addresses a long-standing problem: most people lack the time to participate meaningfully in governance decisions.

With thousands of choices across many domains, the current model of delegation concentrates power in too few hands.

Personal AI Agents Could Reshape How People Vote

Buterin proposes using personal large language models to handle the attention problem in decentralized governance.

A personal governance agent could cast votes on a user’s behalf by studying their writing, conversations, and stated preferences. This approach keeps individuals connected to decision-making without requiring constant attention.

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When an agent is unsure how a person would vote on a given issue, it would pause and ask them directly. It would also provide all relevant context before prompting any response. This design avoids blind delegation and keeps the individual informed on matters that count.

The model differs sharply from current delegation systems, where supporters often lose influence after pressing a single button.

A personal agent maintains ongoing alignment with the user’s values. It acts as a filter rather than a replacement for human judgment.

Public Conversation Tools Can Aggregate Views More Accurately

Buterin also raises concerns about how collective decisions are currently formed. Simply averaging people’s views based on their own limited information does not produce well-informed outcomes.

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A better process would gather and combine information across many participants before asking them to respond.

He points to tools like LLM-enhanced versions of pol.is as one direction worth pursuing. These systems summarize what people have in common based on their actual words. They can surface shared ground that might otherwise stay hidden in large groups.

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Additionally, a public conversation agent could translate a person’s views into a shareable format without exposing private details.

This makes broader participation possible without forcing individuals to be publicly identifiable. Anonymity tools using zero-knowledge proofs could support this further.

Multi-Party Computation Addresses Private Decision-Making

One major weakness of democratic governance is its struggle with confidential information. Negotiations, internal disputes, and compensation decisions often require secrecy that open voting cannot provide. Buterin suggests multi-party computation as a technical solution to this tension.

Under this model, a participant’s personal LLM would enter a secure environment, review private data, and output only a judgment.

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Neither the participant nor anyone else would see the private information itself. Trusted Execution Environments, or TEEs, have already demonstrated this approach in practice.

Buterin also calls for greater use of garbled circuits to achieve pure cryptographic security in at least two-party cases.

Privacy, he notes, must cover both participant anonymity and the contents of their inputs. Zero-knowledge proofs and multi-party techniques together form the foundation he envisions for this system.

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Crypto World

Algorand Warns Developers Against “Vibe Coding” Smart Contracts to MainNet

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TLDR:

  • Algorand warns that smart contract vulnerabilities cause immediate, irreversible fund loss with no legal recovery path available. 
  • AI tools may store user data in LocalState, a flawed pattern where ClearState drains critical accounting data permanently. 
  • Algorand recommends using Plan Mode and agent skills to design secure contract architecture before writing a single line of code. 
  • Private keys must stay out of AI reach entirely, with OS-level keyrings handling all transaction signing away from the agent.

Algorand is urging blockchain developers to adopt disciplined, AI-assisted practices before deploying smart contracts to MainNet.

The blockchain platform has drawn a clear line between reckless AI-generated code and responsible agentic engineering.

With AI agents now capable of building and deploying contracts in a single conversation, the stakes have never been higher. Deploying vulnerable smart contracts means immediate, irreversible loss of funds with no path to recovery.

The Risk of Unreviewed AI-Generated Code

Algorand developers have identified a growing problem in the broader web3 space. AI coding tools allow developers to ship products faster, but unchecked code carries serious risk.

Unlike web2 breaches, smart contract vulnerabilities cannot be patched after the fact. Funds drained from a poorly written contract are gone permanently, with no legal recourse available.

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The Algorand team shared a concrete example of how AI can mislead developers. An AI might store user balances in LocalState, which appears to be the correct pattern.

However, users can clear local state at any time, and ClearState succeeds even when a program rejects it. This means critical accounting data can disappear without warning. Developers who do not understand the code they ship are exposed to exactly this kind of subtle failure.

Algorand’s developers formalized this concern through a public post from the @algodevs account. The post draws from Addy Osmani’s distinction between “vibe coding” and “agentic engineering.”

Vibe coding means accepting all AI output without review. Agentic engineering means the developer remains the architect and final decision-maker throughout the process.

The platform advises developers to use BoxMap instead of LocalState for data that cannot be lost. This kind of nuance is what separates a working contract from a broken one.

AI tools trained on outdated patterns will not flag these issues automatically. Developers must bring their own understanding to every deployment.

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How Algorand Recommends Building Safely With AI

Algorand outlines several practices to keep AI-assisted development secure and maintainable. Developers should use Plan Mode before writing any code, allowing the agent to design architecture first.

This produces a spec covering state schema, method signatures, and access control. Reviewing this plan catches design flaws before any implementation begins.

Agent skills play a major role in guiding AI toward correct Algorand patterns. These are curated instructions that encode current best practices directly into the development workflow.

Without them, AI is likely to use deprecated APIs or outdated patterns. Structured prompts reduce hallucinations and produce more reliable contract code.

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Private keys must remain completely out of reach of AI agents at all times. Tools like VibeKit use OS-level keyrings so that AI requests transactions without ever accessing signing credentials.

Additionally, developers should use algokit task analyze and simulate calls to catch edge cases. Testing should mirror how an attacker would approach the contract, not just how a user would.

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Crypto World

US President Trump Raises Global Tariff Rate to 15%, Crypto Doesn’t Budge

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US Government, United States, Donald Trump

US President Donald Trump is now using alternative legal routes to levy tariffs, but critics say his authority to impose them is still limited.

United States President Donald Trump announced on Saturday that he is raising the 10% global tariff rate announced on Friday to 15%, which will take effect immediately. 

Trump reiterated his criticism of the Supreme Court’s decision to strike down his authority to levy tariffs under the International Emergency Economic Powers Act (IEEPA). In a Saturday Truth Social post, he said:

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“As President of the United States of America, I will be, effective immediately, raising the 10% worldwide tariff on countries, many of which have been ‘ripping’ the US off for decades, without retribution, until I came along, to the fully allowed, and legally tested, 15% level.”

On Friday, Trump announced a 10% global tariff rate to be added on top of already existing tariffs that remained valid after the court ruling, under alternative legal statutes outlined in the Trade Expansion Act of 1962 and the Trade Act of 1974. 

US Government, United States, Donald Trump
Source: Donald Trump

However, pro-crypto attorney Adam Cochran said the scope of these laws also limits Trump’s authority to levy broad tariffs indefinitely.

“The law he is using only allows this to be on countries we have a deficit with, for a set period of 150 days, and at a capped percentage,” he said

Each new tariff announcement from Trump caused turmoil in the crypto and stock markets, with severe downturns that negatively impacted asset prices and fueled macroeconomic uncertainty among investors.  

Related: US lawmakers critical of Trump tariffs, say it will derail the economy

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Crypto markets held firm in the wake of the latest tariff announcements

The crypto market, which usually experiences heavy sell-offs in response to tariff announcements, held firm in the wake of the latest tariff headlines.

US Government, United States, Donald Trump
Bitcoin’s price barely reacted to the Trump tariff announcements on Friday and Saturday. Source: TradingView

The price of Bitcoin (BTC) held steady at the $68,000 level, and Ether (ETH) also remained firm, showing little to no change since Friday when the new tariffs were announced.

The Total3 indicator, which tracks the entire market capitalization of the crypto sector, excluding BTC and ETH, fell by less than 1% on Saturday and remains at about $713 billion at the time of this writing.

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