# kaal:claim:3125827-005

**Claim.** Because the stakes in SPoS are reputation tokens that are far less fungible than cryptocurrency stakes, long term probity is incentivized and many short term arbitrage opportunities are eliminated. Fungibility of the staked asset is what makes short horizon attacks profitable in other proof of stake systems.

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

**Holds when.**

- stakes denominated in non fungible reputation tokens rather than currency

**Source quote.**

> In particular, the stakes (sem tokens) are naturally far less fungible than cryptocurrency stakes, so long-term probity is incentivized, eliminating many short- term arbitrage opportunities.

**From.** Craig Calcaterra, Wulf A. Kaal, *Secure Proof of Stake Protocol* (2018), 1 Overview, page 4

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Secure Proof of Stake Protocol (2018). SSRN: https://ssrn.com/abstract=3125827

**Verify.** sha256 of source PDF `598d9bd95e4af7a0a35328677c6bfc069f69f2e32c30c720b3a0be98a23a40cb` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202018%20-%20Secure%20Proof%20of%20Stake%20Protocol.pdf

**Topics.** tokenomics, consensus-and-security, reputation

**Keywords.** sem-tokens, fungibility, arbitrage, proof-of-stake, reputation-staking

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3266953-016

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