Ethereum

this may be the crypto x ai intersection I am most curious about: 

So, 

everything is accelerating.

our economies.
our intelligence.

but as these systems scale,
can our values scale with them?

introducing a concept I have been toying with called value fractals. 🧵

lore @optimism | ex: @coinbase | views are my own | what if it all worked out? 

in a value fractal, values start as seeds, core principles like “be fair” or “prioritize sustainability.”

as they scale, they adapt to complexity:

 from individuals to communities to global systems.

from cultural nuance to universal alignment.

but for value fractals to work, they need systems that make them scalable, adaptive, and enforceable.

this is where DAOs and AI come in.
together, they create the transparency and feedback loops required to scale values effectively.

DAOs act as nodes in the value fractal, enabling governance at different levels:

1. Macro DAOs: Define foundational principles, like “don’t harm others” or “be sustainable.”

2. Localized DAOs: Communities interpret and apply these principles to their specific contexts.

this structure ensures alignment:

- macro DAOs set universal principles.

- localized DAOs adapt them to cultural, economic, or geographic needs.

but alignment isn’t just about structure. it requires constant feedback to prevent stagnation or misalignment.

this is where AI becomes critical.

AI helps value fractals scale by:

1. Boosting feedback loops: AI models how local actions affect global systems and flags misalignment early.

2. Adapting principles dynamically: AI prevents ossification by ensuring that macro values evolve with societal changes (it also allows information to keep up, unburdening the errors of human miscommunication) 

3. Resolving tensions: AI balances local autonomy with global coherence.

ai-assisted feedback loops are key.

history is full of examples where systems stagnated because they lacked effective feedback mechanisms:

- bureaucracies that couldn’t adapt to new challenges.

- rigid policies that ignored cultural shifts.

- global systems that alienated local communities.

AI solves this by acting as a real-time interpreter for value fractals:

- monitoring local DAOs to ensure alignment with macro principles.

- analyzing data at scale to spot patterns humans might miss.

- suggesting course corrections to prevent misalignment from escalating.

we can think of how to scale values alongside ai assistance by learning from decentralized governance systems that are bicameral (two houses), like Optimism’s governance. In our case: 

1.Human Councils: Local or community-driven groups deliberate and vote on proposals, bringing cultural nuance and ethical reasoning.

2. AI Advisors: AI systems analyze data, provide forecasts, and recommend decisions that scale dynamically.

the result is a partnership:

- humans set the values.
- DAOs enforce them transparently.
- AI helps them adapt to complexity, ensuring relevance and alignment as systems evolve.

this isn’t governance that ossifies, it’s governance that grows through accurate readings on the things which it governs.

why is this necessary?

as our systems scale, so does complexity.

governance structures that worked in the past

static laws, rigid organizations, won’t survive the speed and scale of today’s challenges.

we need systems that:

- scale values.
- remain transparent.
- adapt dynamically to progress.

value fractals aren’t about imposing a single vision, they’re about creating frameworks where values evolve alongside technology and society.

DAOs provide the transparency.
AI provides the adaptability.
Smart contracts ensure alignment.

if our values can scale alongside our tools, we have the chance to build systems that are not just fast or efficient

but truly aligned with what matters most: us.

value fractals offer a way to scale human values alongside technology.

a fractal is a pattern that repeats at every scale (❄️), self-similar, consistent, and adaptable even under different lenses.

what if values could work the same way?

Love the concept of value fractals. What I’m hesitant about is the AI component. I agree that in theory they could provide a great counterbalance to our most fallible human tendencies. However in practice, there are no ways I’m aware of to guarantee AI output remains truly neutral.

How might we embed these values in contracts the AI evaluates against and the DAO votes to update?