Can you imagine what a digital white ethnostate or cyber-caliphate might look like? Having spent much of my career within online extremist movements, I can certainly do that. 2024 could be the year when neo-Nazis, jihadists and conspiracy theorists turn their utopian visions of creating self-governing states into reality, not offline, but in the form of Decentralized Autonomous Organizations (DAOs).
DAOs are collaboratively governed digital entities without central leadership and operate on the basis of blockchain. They allow Internet users to establish their own organizational structures, which no longer require the involvement of third parties in financial transactions and regulation. The World Economic Forum has described DAOs as “an experiment in reimagining how we connect, collaborate and create.” However, like all new technologies, they also have a dark side: they are likely to give rise to new threats emerging from decentralized extremist mobilization.
Today, there are already over 10,000 DAOs, which collectively manage billions of dollars and have millions of participants. So far, DAOs have attracted a wild mix of libertarians, activists, pranksters, and hobbyists. Most DAOs I’ve come across in my research seem innocent and fun. Personally, my favorites include CaféDAO, which aims to “replace Starbucks” (good luck!); the 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 use a more radical tone. For example, the DAO Redacted Club, which is filled with alt-right code and references to conspiracy myths, claims to be a secret network with the goal of “killing” the “evil Meta Lizard King.”
2024 could be the year extremists begin to strategically use DAOs. Policies, legal contracts and financial transactions that have traditionally been the domain of governments, courts and banks can be replaced with smart contracts, non-fungible tokens (NFTs) and cryptocurrencies. The use of anonymous bitcoin wallets and non-transparent cryptocurrencies such as Monero is already widespread among extremists whose bank accounts have been frozen. The transition to entirely decentralized forms of self-government is only one step away.
In addition to the practical reasons that encourage extremists to create their own self-governing structures, there is also an ideological incentive: their fundamental distrust of the establishment. If you believe the Deep State or “global Jewish elites” control everything from governments and Big Tech to the global banking system, DAOs offer an attractive alternative. Conversations on far-right fringe platforms like BitChute and Odysee reveal that there is a lot of interest in decentralized alternative forms of collaboration, communication and crowdfunding.
So what would happen if anti-minority groups established their own digital worlds in which to impose their own governance mechanisms? What is at stake if trolling armies start cooperating via DAO to launch election interference campaigns? The activities of extremist DAOs could challenge the rule of law, pose a threat to minority groups and destroy institutions that are currently considered fundamental pillars of democratic systems. Another risk is that DAOs could serve as a safe haven for extremist movements by allowing users to evade government regulations and security services’ monitoring activities. They could also allow extremists to find new ways to raise funds, plot and plan radicalization campaigns or even attacks. While many governments have focused on developing legal frameworks to regulate AI, few have even acknowledged the existence of DAOs. Their imminent exploitation for extremist and criminal purposes is something that has flown under the radar of global policymakers.
Technology expert Carl Miller, who has long warned about the potential misuse of DAOs, told me that “even though DAOs act like businesses, they are not registered 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 rules in place to hold DAOs accountable for extremist or criminal activity, the big question for 2024 will be: How do we ensure the metaverse doesn’t give rise to digital white ethnostates or cyber-caliphates?