Smart contracts need community intelligence | Opinion

The most valuable protocols don’t change human judgment with algorithms. They construct systems that combine community wisdom with technical accuracy.

During the cascading liquidations of 2023, protocols with community-integrated risk systems experienced substantially fewer insolvencies than those relying exclusively on algorithms (Onslaught, 2023). The most effective procedures include these concepts:

• Transparent observability: Community participants require visibility into system operations.
• Finding your edge as a financier: For investors, the implications are clear: procedures developed to harness neighborhood intelligence offer more sustainable returns.

During the cascading liquidations of 2023, procedures with community-integrated threat systems experienced considerably less insolvencies than those relying entirely on algorithms (Onslaught, 2023). The most successful procedures integrate these concepts:

• Transparent observability: Neighborhood individuals require exposure into system operations.
• Belief aggregation systems: Beyond official governance votes, effective protocols record continuous feedback through multiple channels: forums, Discord conversations, GitHub issues, on-chain habits.
• Finding your edge as an investor: For financiers, the implications are clear: procedures developed to harness community intelligence provide more sustainable returns. The most valuable protocols do not change human judgment with algorithms.