Opinion by: Jarrad Hope, co-founder of Logos

As AI rapidly scales, humans are left at an ideological impasse on managing this new technology. Either choose to allow governments and companies to dominate how AI is trained and used to create policies that control our lives, or call for new governance models built with a foundation grounded in transparency, regeneration and public good. 

Network states, digital communities leveraging blockchain to form borderless societies, present a significantly improved approach to harmonizing AI with human well-being. With technology continually advancing the scope of digital augmentation, it’s essential to establish a new category of AI development administration focused on serving people, not power.

The bias problem is a data problem and a governance one

Today’s generative AI is trained on narrow data sets and governed by centralized actors, such as xAI and OpenAI, with limited public accountability. Training a large language model on a limited data set results in language models that reinforce bias, fail to reflect diverse perspectives and undermine equitable initiatives. Grok, for example, caused backlash for the social media giant because of its extremist responses to certain prompts after an update. 

Network states can solve this by enabling an organization that grants community governance, allowing for a new approach in training and democratizing AI. Shifting the foundational philosophy to consensus, ownership, privacy and community will mitigate the negative connotations featured prominently in prevailing AI discourse. Decentralized communities within network states would define their goals and data sets and train AI models to align with their needs. 

Impact decentralized autonomous organizations (DAOs) can help to democratize AI by focusing on using blockchain technology for social good. They could collectively fund open-source AI tools, facilitate inclusive data collection and provide continuous public oversight. This approach shifts governance from gatekeeping to stewardship, ensuring AI development benefits all of humanity. Shared responsibility will enable the needs of the most vulnerable populations to be included and foster greater stakeholder buy-in for AI’s advantages. 

Centralization is a threat to the AI commons

Over 60% of the world’s leading AI development is concentrated in a single US state, California, reflecting a high centralization of influence. This imbalance is not just geographic; it’s political and economic. For example, xAI was sued for using gas turbines in Memphis, Tennessee to power its data centers. It is a clear example of a local government misaligned with the people’s call for environmental regulation. Without checks, this power can extract value from society while externalizing harm. This harm is exacerbated through AI’s need for high energy outputs, resulting in ecological factors affecting specific communities disproportionately. 

Network states offer an alternative: decentralized communities unbound by borders, where digital citizens co-create AI governance frameworks. Impact DAOs embedded within these systems allow participants to propose, vote on and implement safeguards and incentives, turning AI from a tool of control into a commons-oriented infrastructure. Expanding where AI is represented will inform how the technology is best used for positive societal impact. 

Toward transparent, regenerative AI management and application

Most AI systems today operate in algorithmic black boxes, producing real-world effects without certain human input or oversight. From biased hiring algorithms to opaque healthcare triage systems, people are increasingly subject to automated decisions with no say in how they’re made.

Related: Network states will one day compete with nation-states

Network states flip that model by allowing onchain governance and transparent public records. People can see how rules are made, participate in their formation and exit if they disagree. 

Impact DAOs build on this vision by mitigating harm and incentivizing the replenishment of public goods. They invest in the long-term sustainability of fair, auditable systems, creating open, transparent developments for the community that may also invite external parties to opt in and contribute funding or other resources.

The next phase

Legacy nation-states struggle to properly regulate AI due to issues such as the outdated digital context of lawmakers, fragmented policies and overreliance on legacy tech leadership. Network states are building models from the ground up, with blockchain-native tools, decentralized coordination and programmable governance. Impact DAOs, open and public digital communities driven by purpose, can unlock a new era of AI development. These communities can align incentives and build participatory, representative and regenerative AI by integrating decentralized blockchain and governance with generative and agentic AI.

Foundations for the future of collective good 

AI should be considered a public good, not merely an efficiency tool. New governance systems must be open, transparent and community-led to achieve this, fostering smart and fair innovation and development planning. We can construct these systems today by embracing the inclusive, technological and philosophical aspects of network states and impact DAOs. Prioritizing investment in infrastructure that supports digital sovereignty and collective care is essential for designing an AI future that benefits people, not just profits.

Opinion by: Jarrad Hope, co-founder of Logos.

This article is for general information purposes and is not intended to be 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.