kaal:claim:3396542-011

If underwriters decline to reclaim their encumbered tokens, that breach is resolved by selling the encumbered tokens, plus additional freshly minted tokens as needed, in an auction open to current DAO participants and to outsiders wishing to join.

Source quote, verbatim

In such a case, the encumbered tokens, along with additional freshly minted tokens as needed, would be sold in an auction. All current DAO participants as well as outsiders interested in joining the DAO may bid for the tokens in this auction.

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019), II. The Design of the Underwriting DAO, p. 5
https://ssrn.com/abstract=3396542 · source PDF

Cite as

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

Holds when

breach by underwriters on a specific policy

Classification

mechanismsupport: arguedsystemic-risktokenomicsdao

Verify

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Attestation record: colloquium/attestations/725cfb42d841d816...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3396542-011.md | sha256sum