Can you imagine what a digital white ethnicity or a cyber caliphate might look like? Having spent most of my career within online extremist movements, I certainly can. 2024 may be the year that neo-Nazis, jihadists, and conspiracy theorists realize their utopian visions of creating their own autonomous states—not offline, but in the form of Decentralized Autonomous Organizations (DAOs).
DAOs are digital entities that are collectively governed without a central leadership and operate on the blockchain. They allow Internet users to create their own organizational structures, which no longer require third-party involvement in financial transactions and rulemaking. The World Economic Forum described DAOs as “an experiment to reimagine how we connect, collaborate and create.” However, as with all new technologies, there is a darker side to them: they are likely to create new threats arising from the decentralized mobilization of extremists.
Today there are more than 10,000 DAOs, collectively managing billions of dollars and involving millions of participants. So far, DAOs have attracted a mix of libertarians, activists, pranksters, and hobbyists. Most DAOs I’ve come across in my research seem innocent and fun. Personally, my favorites include theCaféDAO, which aims to “replace Starbucks” (good luck!). Doge DAO, which wants to “make the Doge meme the most recognizable work of art in the world”. and HairDAO, “a decentralized asset manager that solves hair loss.” But some DAOs take a more radical tone. For example, Redacted Club DAO, which is full of Alt-right code and conspiracy myth references, claims to be a secret network with the goal of “assassining” the “evil lizard meta king”.
2024 may be the year when extremists begin to use The DAO strategically. Policies, legal contracts and financial transactions that were traditionally the domain of governments, courts and banks can be replaced by smart contracts, non-fungible tokens (NFTs) and cryptocurrencies. The use of anonymous Bitcoin wallets and opaque cryptocurrencies such as Monero is now popular among extremists whose bank accounts have been frozen. A shift to fully decentralized forms of self-governance is only one step away.
Beyond the practical reasons that encourage extremists to create self-governing structures, there is also an ideological motivation: their fundamental distrust of the establishment. If you believe that the deep state or “global Jewish elite” control everything from big governments and technology to the global banking system, DAOs offer an attractive alternative. Conversations on far-right fringe platforms like BitChute and Odysee show that there is a huge appetite for alternative decentralized forms of collaboration, communication and crowdfunding.
So what happens if anti-minority groups create their own digital world in which to impose their own governing mechanisms? What are the risks if trolling armies work together through DAOs to launch election interference campaigns? The activities of extremist DAOs can challenge the rule of law, pose a threat to minority groups, and disrupt institutions that are currently considered fundamental pillars of democratic systems. Another risk is that DAOs can act as safe havens for extremist movements, enabling users to circumvent government regulations and the monitoring activities of security services. They may also allow extremists to find new ways to raise funds, plan and design extremist campaigns or even attacks. While many governments have focused on developing legal frameworks to regulate AI, few have even recognized the existence of DAOs. Their imminent exploitation for extremist and criminal purposes is something that is on the radar of global policy makers.
Tech expert Carl Miller, who has long warned about the potential abuse of DAOs, told me that “although DAOs behave like corporations, they are not incorporated as legal entities.” There are only a few exceptions: the US states of Wyoming, Vermont, and Tennessee have passed laws to legally recognize DAOs. With no regulations to hold DAOs accountable for extremist or criminal activity, the big question for 2024 will be: How can we ensure that Metaverse doesn’t create digital white ethnicities or cyber caliphates?
