# kaal:claim:2998097-040

**Claim.** Blockchain technology enables managers to charge per-transaction fees, which undermines the existing 2 and 20 fee model, because it allows fully automated allocation of the correct fee to each executed trade without manual reconciliation or settlement.

**Type.** mechanism  **Support.** argued

**Holds when.**

- blockchain enabled private investment funds

**Source quote.**

> Blockchain technology enables managers to charge per- transaction fees which undermines the existing 2/20 fee model.

**From.** Wulf A. Kaal, *Private Investment Fund Regulation - Theory and Empirical Evidence from 1998 to 2016* (2017), VI. Blockchain Technology Applications for Private Investment Funds, page 49

**Cite as.** Wulf A. Kaal, Private Investment Fund Regulation - Theory and Empirical Evidence from 1998 to 2016 (2017). SSRN: https://ssrn.com/abstract=2998097

**Verify.** sha256 of source PDF `0955054f49c7011d33c285579bb046e6b284e42755b10fd2546a728c202669d5` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Private%20Investment%20Fund%20Regulation%20-%20Theory%20and%20Empirical%20Evidence%20from%201998%20to%202016.pdf

**Failure mode.** Technology erodes the 2 and 20 fee model  (family: incumbent-resistance-to-adoption)

**Topics.** blockchain, smart-contracts

**Keywords.** fee-model, blockchain, per-transaction-fees, smart-contracts

**Related claims.**

- restates: https://wulfkaal.github.io/claims/2959730-029

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.