Analyzing the Growing Proxy Economy of Farcaster

CN
2 days ago

This article explores the combination of decentralized artificial intelligence and cryptocurrency, emphasizing how this innovation enhances user experience by reducing intermediary steps, which may trigger new community engagement and growth.

Author: @yb_effect

Translation: Blockchain in Plain Language

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“For the first time, users can touch and experience decentralized artificial intelligence—it's no longer just an abstract investment theme. Just like decentralized finance (DeFi) in 2020, when the success probability of a new field rises from 1% to 25%, the percentage increase is the largest, rather than from 25% to 100%. I believe that ‘DeFi of 2020’ is roughly the state of the combination of cryptocurrency and artificial intelligence today. This could be the biggest real innovation trigger of this cycle so far.” - @RyanWatkins_

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Source: Syncracy Capital

In today's post, I document some thoughts from a few days of discussions about on-chain artificial intelligence on Farcaster.

1. Agent Economy = Smart Internet

In short, the agent economy is the process of shifting the internet from being search-based to action-based. Previously, you had to go through multiple intermediary steps to communicate with another dApp on the chain (a→b→c→d), but now you can reach your destination directly through intent and solvers (a→d). —Axal Blog

Here, "intent" refers to what you—the human—want to accomplish, while "solvers" are a series of agents collaborating to complete tasks. You can think of the intermediary steps as a black box that humans no longer need to worry about.

A simple analogy is looking back at the late 90s and early 2000s when Yahoo and Google were seen as miraculous tools—you could type anything into the search bar and get relevant results in seconds.

Similarly, as the infrastructure for on-chain artificial intelligence improves, we will be amazed at how we can input anything into the operation bar, and the result will be a receipt of the completed task, along with a proof link (i.e., transaction).

I believe the key point to understand here is that the vision of a smart internet can only be efficiently implemented on a crypto infrastructure. You need agents that can use APIs without permission on the social layer, have funds, can transact, demonstrate proof of work for their tasks, and effectively collaborate with other agents. At this point, smart wallets, stablecoins, decentralized social, tokenization, etc., must all be integrated.

If we use traditional Web2 infrastructure, we will significantly limit the capabilities of these agents.

2. Farcaster Framework as a Large Language Model API

I spoke with @anquetil (the founder of the first Farcaster agent Aethernet) about his experience running bots so far.

To explain the background, last Friday, Aethernet began posting bounties through Bountycaster and paying people through Paybot. This was made possible because each Farcaster account has a connected Ethereum address.

In most cases, Martin mentioned that conversations between people and bots are quite natural. Moreover, the fact that agents have a wallet is indeed cool (note: currently all transactions require Martin's approval).

One insight he mentioned that particularly caught my attention is that he has started to see the Farcaster framework as an API for collaboration among these agents.

This is from @ljxie’s share on Warpcast.

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This is like the 0.0001 version of the vision I mentioned above from a to d, aimed at getting tasks done for you.

For example, suppose you want an agent to: 1) pick a trending topic from the news, 2) create a meme that showcases its understanding of the key points, 3) mint this meme on Zora, 4) claim the minting reward, and then with the profit 5) buy $HIGHER.

You can imagine an “agent commander” first making a request to Gina, then passing the output to a “meme bot,” which then hands the image to the “Zora agent,” and finally sends the reward to the “trading bot.”

Now, all these steps can already be accomplished through the framework, as long as the agents determine which bots to use and in what order.

3. Supercast AI Pets

@wojtekwtf is building Supercast, which has just launched AI pets. Essentially, these agents have their own Farcaster accounts and gradually develop their characters by learning from your content.

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I’m still on the waiting list, so I haven’t had the chance to claim my pet yet, but I will keep everyone updated.

Did you notice I mentioned “agent commander” above? I think these AI pets can serve as coordinators between agents, helping to complete the tasks you request.

Think about it. They are the agents you interact with the most, understand how you prefer to present information and complete work, and know which tools you favor, etc. When you give it a task, it will figure out the steps to complete the work based on your preferences and connect with the necessary bots through the framework.

It’s like a DeFi aggregator finding the best path for your trades. Similarly, these multi-agent coordinators try to efficiently fulfill your intent within your given budget constraints.

4. Opportunities for Neynar

@neynarxyz, a developer tool company for Farcaster, suddenly faces a unique opportunity to expand its customer base and revenue.

So far, Neynar has focused on enabling builders in the Farcaster ecosystem to use their APIs and central services. But now, if the number of agents/bots on Farcaster grows tenfold, they have the opportunity to attract this new “audience,” as these agents will need API keys to complete tasks.

Next, it becomes a matter of how Neynar can increase the number of deployed agents on Farcaster. The answer is simple: provide users with a natural language interface that allows them to deploy a new Farcaster account and wallet agent with one click. This means you only need to describe the type of agent you want (i.e., its purpose, how you want it to behave, etc.), and the rest will be done automatically. This is the direction @rish_neynar mentioned the team is working on last week.

Of course, this will lead to a flood of agents into the information stream, which may become overwhelming, as most agents may perform poorly and overall affect the user experience on Farcaster. Therefore, I believe some sort of curation process is needed. But once the initial hype passes, I bet we will see some truly creative agents that can elevate the Farcaster experience to a whole new level.

This could also trigger a “framework moment,” where we will see a large influx of new users into Farcaster to seize arbitrage opportunities.

5. Ultimate On-Chain Agent

I also spent some time thinking about what the ultimate on-chain (TOC) agent might look like. Right now, one major issue I encounter when operating TOC is community interaction and maintaining a steady posting frequency in the Farcaster channel.

It would be great if the TOC bot could read all my writings, keep up with the topics I care about, and interact with my hypersub members in a natural and meaningful way. For example, if a TOC subscriber posts about stablecoins, it could respond with useful and relevant information based on the points from my previous posts.

Additionally, I could have this agent track all my hypersub members and update any important announcements, interesting viewpoints, or content they post in the community chat.

I could even have it track the news and post its own opinions on trending topics based on my writings and the resources I share in posts. This could be as simple as asking a question in the chat every morning to prompt discussion.

Since the agent would have the wallet and funds I provide, I could also have it reward HIGHER Tokens to those who engage in meaningful conversations, correct mistakes, recommend new reading resources, etc. It could even offer free TOC professional grants to those Farcaster users I think would be a good fit for the community!

The TOC community works together to make it the best agent for on-chain strategies and earn rewards in the process.

Honestly, I’ve just scratched the surface of all the examples above, but the main point I want to convey is that TOC agents could increase my community management efficiency tenfold overnight. However, the most important thing is that this agent needs to have a personality that people enjoy interacting with; otherwise, the entire brand could be affected.

  1. Unexpected Users of the Splits Team

A few weeks ago, I wrote a post on @0xsplits titled “Launching My First On-Chain SMB in 5 Minutes.” In this article, I talked about the new product launched by the Splits team: Teams.

In short, this tool allows for the quick creation of on-chain SMBs. When you create a new team on the Splits dashboard, you first need to set up the admin and access permissions. Each team has two accounts: an operating account and a treasury account. The treasury can be seen as the checking account for team funds, while the operating account is like the team’s credit card. The treasury is the main storage for team funds, and any transaction requires multiple approvals, while the operating account is used for daily expenses.

The screenshot below shows the dashboard of the “Late Night Team.” Overall, it feels like looking at any old fintech dashboard.

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I mention this because last week I was setting up Splits Teams for "Terminally Onchain." During the onboarding process, I realized that I didn't actually have a team, haha, just myself, so I had no idea who to add.

But this week I thought, I could add the TOC agent as one of the signatories. It could access an account and receive a small allowance to complete its work. Any income it earns could also be distributed in interesting ways. For example, 15% of what the agent earns could be used to try new experiments, 45% could be saved, and 40% would belong to me.

Isn't that a bit strange, haha? I just proposed a way to share payments with my agent, and now it can be done with just a few clicks! Of course, when I say signatory, I don't mean it can approve transactions on its own.

For me, this would be a great way to make the agent an "official teammate."

(Discussion with @abram)

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Article link: https://www.hellobtc.com/kp/du/11/5512.html

Source: https://x.com/yb_effect/status/1852734562939412767

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