Create pip-44.md (#250)

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PIPs/pip-44.md

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+---
+pip: 44
+title: Decentralized AI Chatbot and DAO Governance for Pactus
+description: >
+  Integrates a decentralized AI chatbot for wallet operations and DAO governance,
+  halves validator rewards to incentivize compute contributors, and enables WASM smart contract deployment.
+author: Curtis Caudill (@cjcaudill79)
+status: Draft
+category: Core
+created: 2025-09-13
+---
+
+## Abstract
+
+Pactus's focus on accessibility, security, and sustainability via SSPoS makes it ripe for innovation.
+This proposal introduces a decentralized AI chatbot to simplify wallet operations and DAO governance,
+empowering users with natural language commands. By halving validator rewards to fund compute contributors,
+it fosters a sustainable ecosystem. A long-term goal allows developers to
+deploy WASM-based smart contracts via the chatbot, boosting dApp growth and
+positioning Pactus as a leader in AI-blockchain integration.
+
+## Motivation
+
+- Community Empowerment: A DAO aligns with Pactus's decentralized ethos, giving users a voice.
+- AI Leadership: Positions Pactus as a pioneer, attracting tech-savvy participants.
+- Adoption Growth: Simplifies interactions, potentially increasing users 2-5x.
+- Sustainability: Reward adjustments support long-term economic stability.
+
+## Specification
+
+- **Architecture**: Features a frontend AI chatbot (web/mobile with NLP, sharded LLMs like Llama),
+  a decentralized compute layer (node runners contribute GPU/CPU, tracked on-chain),
+  and blockchain integration (Pactus APIs, PVM).
+- **Reward Mechanism Modification**: Reduces validator rewards from 0.7 PAC/block (post-PIP-43) to 0.35 PAC/block,
+  allocating 0.35 PAC/block to compute contributors, with the Foundation's 0.3 PAC/block unchanged.
+  Rewards are distributed pro-rata based on FLOPs/hashrate, requiring minimal staking to prevent sybils,
+  implemented via PIP and tested on testnet.
+- **Wallet Functionality**: AI enables address creation, send/receive PAC, staking,
+  and balance queries using the consumptional fee model.
+- **DAO Governance**: Requires 100 PAC to propose, 10 PAC to vote, with a 1% voting cap (~420,000 PAC) per voter and
+  10% staked supply quorum. The Pactus team holds veto power due to execution responsibility,
+  ensuring security. DAO proposals can be made and displayed for voting through the chatbot.
+- **User Rewards**: Offers 0.001-0.01 PAC per interaction from fees/community pool, capped daily.
+
+## Backwards Compatibility
+
+Unsure
+
+## Test Cases
+
+- Test reward halving on testnet to ensure fair distribution.
+- Simulate AI-driven wallet operations and DAO voting.
+
+## Reference Implementation
+
+- **AI Chatbot Development**: Uses PyTorch/TensorFlow for federated learning, fine-tuning Llama on wallet ops,
+  governance, and WASM syntax. Nodes run WASM-based inference, tracked via
+  on-chain proofs (e.g., Merkle proofs of FLOPs). Integrates Pactus JS SDK and gRPC for tx submission.
+
+## Security Considerations
+
+- Risks include reward resistance and low adoption.
+- Mitigations: Gradual phasing and marketing via Pactus channels to encourage participation.
+
+Added for additional context - Can delete if needed (Some redundancy)
+
+1 Executive Summary
+As you know, Pactus’s focus on accessibility, security, and sustainability via SSPoS positions
+it for innovative advancements. This proposal introduces a decentralized AI chatbot
+and DAO governance to enhance user accessibility, streamline wallet operations, and empower
+community-driven decision-making. By halving validator rewards to incentivize compute contributors,
+we foster a sustainable ecosystem aligned with Pactus’s vision. The long-term goal
+enables developers to deploy WASM-based smart contracts via the chatbot, accelerating dApp
+growth. This PIP aims to drive adoption, boost PAC utility, and establish Pactus as a leader in
+AI-blockchain integration.
+
+2 Proposed Integration: Decentralized AI Chatbot and DAO
+2.1 High-Level Concept
+The initiative introduces a decentralized AI chatbot as a user-friendly interface for wallet operations
+and DAO governance via natural language (e.g., “Send 5 PAC” or “Vote on proposal
+X”). Compute is provided by node runners, incentivized through restructured rewards. The
+DAO enables PAC holders to propose and vote on upgrades, with team veto and voting caps for
+fairness.
+
+2.1.1 Why Beneficial
+• Community Empowerment: DAO aligns with Pactus’s decentralized ethos.
+• AI Leadership: Positions Pactus as a pioneer, attracting tech-savvy users.
+• Adoption Growth: Simplifies interactions, potentially increasing users 2–5x.
+• Sustainability: Reward changes support long-term economic stability.
+
+2.2 Architecture
+• Frontend AI Chatbot: Web/mobile app with NLP, built on sharded LLMs (e.g., Llama).
+• Decentralized Compute Layer: Node runners contribute GPU/CPU; contributions tracked
+on-chain.
+• Blockchain Integration: Uses Pactus APIs and PVM for rewards and governance.
+• Components:
+– Wallet Module: Address generation, transactions, staking.
+– Governance Module: Proposal creation, voting interface.
+
+2.2.1 Why Advantageous
+• Scalability: Distributed compute scales with network growth.
+• Security: On-chain proofs and local key management reduce risks.
+• Synergy: Integrates with decentralized storage and PVM.
+
+Pactus AI & DAO Proposal
+2.3 Reward Mechanism Modification
+Adjust validator rewards (0.7 PAC/block post-PIP-43) to 0.35 PAC/block for validators and
+0.35 PAC/block for compute contributors, maintaining the Foundation’s 0.3 PAC/block.
+• Distribution: Compute rewards allocated pro-rata based on FLOPs/hashrate, with minimal
+staking to prevent sybils.
+• Implementation: Propose via PIP; test on testnet.
+
+2.3.1 Why This is Good
+• Inclusivity: Attracts AI contributors, expanding participation.
+• Economic Balance: Extends emissions, supporting PIP-43 goals.
+• Token Utility: Ties PAC value to AI usage, boosting demand.
+
+2.4 Wallet Functionality
+AI enables wallet operations: address creation, send/receive PAC, staking, and balance queries,
+leveraging the consumptional fee model.
+
+2.4.1 Benefits
+• User-Friendly: Reduces onboarding friction, boosting retention.
+• Ecosystem Growth: Complements GUI and web wallet enhancements.
+
+2.5 DAO Governance
+• Mechanics: Stake 100 PAC to propose, 10 PAC to vote; voting capped at 1% of total
+supply ( 420,000 PAC) per voter; 10% staked supply quorum. Although the community
+introduces proposals, the Pactus team retains veto power, as they would be responsible
+for carrying them out, ensuring security and protocol integrity.
+• AI Role: Guides staking/voting processes.
+• Topics: Upgrades, reward changes, AI updates.
+
+2.5.1 Why Beneficial
+• Fairness: Voting caps prevent whale dominance.
+• Alignment: Supports on-chain governance plans.
+• Engagement: AI simplifies participation, increasing turnout.
+
+2.6 User Rewards
+Micro-rewards (0.001–0.01 PAC per interaction) from fees/community pool, capped daily.
+
+Pactus AI & DAO Proposal
+2.6.1 Advantages
+• Adoption Incentive: Increases transaction volume.
+• Token Stability: Promotes holding/staking, supporting PAC value.
+3 Long-Term Goal: Smart Contract Deployment via AI Chatbot
+
+3.1 High-Level Overview
+Extend the AI chatbot to allow developers to deploy WASM-based smart contracts via natural
+language, integrating with PVM to accelerate dApp development.
+
+3.1.1 Why Beneficial
+• Reduces development barriers.
+• Drives ecosystem growth via dApps.
+• Merges AI usability with blockchain programmability.
+
+3.2 Technical Explanation
+
+PVM supports WASM-based smart contracts.
+
+1. Prerequisites:
+
+• PVM operational.
+• Pactus SDK (JS/Python) for tx building.
+• AI fine-tuned for code parsing (e.g., via CodeBERT).
+
+2. User Input Processing:
+
+• Developer inputs: “Deploy contract: wasm code” or similar.
+• AI parses code, language, and parameters using NLP.
+
+3. Code Validation:
+
+• Syntax check with linters (e.g., wasm-lint for WASM).
+• Static analysis for vulnerabilities (e.g., custom WASM tools).
+• Simulate execution in sandbox (wasmtime for WASM).
+
+4. Compilation:
+
+• Compile to PVM bytecode (e.g., wasm-pack or Pactus-specific compiler).
+• AI handles errors, suggests fixes (e.g., missing imports).
+
+5. Transaction Construction:
+
+• Pactus AI & DAO Proposal
+• Build deployment tx via Pactus gRPC/REST API.
+• Include bytecode, ABI, constructor args; calculate fees per PIP-31.
+
+6. Signing and Broadcast:
+
+• User approves/signs via chatbot (local key management).
+• Broadcast tx to Pactus nodes.
+
+7. Post-Deployment:
+
+• Poll tx status via API; return contract address, logs.
+• AI enables interaction (e.g., “Call function X with args Y”).
+
+8. Decentralized Aspects:
+
+• Offload compilation/validation to compute contributors (e.g., via distributed WebAssembly runtimes).
+• DAO governs supported languages and tools.
+
+9. Security:
+
+• Rate limits and stake requirements (e.g., 100 PAC) for deployments.
+• AI flags risky code (e.g., reentrancy risks) for manual review or veto.
+4 Technical Implementation Details
+• AI Chatbot Development:
+
+– Framework: Use PyTorch/TensorFlow for federated learning, sharding LLM across
+nodes.
+– Training: Fine-tune Llama or similar on blockchain-specific tasks (wallet ops, governance,
+WASM syntax).
+– Compute Contribution: Nodes run lightweight WASM-based inference tasks;
+contributions tracked via on-chain proofs (e.g., Merkle proofs of FLOPs).
+– APIs: Integrate Pactus JS SDK for wallet/governance; gRPC for tx submission.
+
+## Conclusion
+
+This PIP leverages Pactus’s strengths to integrate a decentralized AI chatbot and DAO, enhancing
+accessibility and governance. By building on PIP-43 and planned on-chain governance, it
+ensures sustainability and positions Pactus as an AI-blockchain leader. We urge the team to
+review and advance this proposal for community discussion.