# kaal:claim:3396542-009

**Claim.** The design requires underwriters to stake or encumber tokens against each policy they underwrite, and those encumbered tokens serve to secure the underwriters' promises.

**Type.** design  **Support.** argued

**Source quote.**

> Fourth, the design requires the underwriters to "stake" or "encumber" an appropriate number of tokens against each policy they underwrite. These tokens in effect serve to secure the promises of the underwriters.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Decentralized Underwriting* (2019), II. The Design of the Underwriting DAO, page 5

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542

**Verify.** sha256 of source PDF `ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Decentralized%20Underwriting.pdf

**Topics.** tokenomics, dao, defi

**Keywords.** token-staking, collateralization, dao-design, insurance-underwriting

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