Classifying Proposals of Decentralized Autonomous Organizations Using Large Language Models

Our study demonstrates the effective use of Large Language Models (LLMs) for automating the classification of complex datasets. We specifically target proposals of Decentralized Autonomous Organizations (DAOs), as the classification of this data requires the understanding of context and, therefore, depends on human expertise, leading to high costs associated with the task. The study applies an iterative approach to specify categories and further refine them and the prompt in each iteration, which led to an accuracy rate of 95% in classifying a set of 100 proposals. With this, we demonstrate the potential of LLMs to automate data labeling tasks that depend on textual context effectively.