kaal:claim:3396542-018

The DAO design requires that the value of the tokens staked on a set of policies be large enough to cover the maximum possible liability on those policies, which in turn imposes a minimum condition on the premium charged.

Source quote, verbatim

The design of the DAO requires that v1 should be large enough to cover the maximum possible liability on the M policies against which these tokens are to be encumbered. We will later derive a condition on the premium

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019), V. MODEL, 2. Value of Tokens in Steady State, p. 14
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

steady state model with constant M and p

Classification

conditionsupport: arguedtokenomicseconomicsdao

Verify

The quote above is an exact substring of the source PDF, whose sha256 is ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/130f32b40c954159...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3396542-018.md | sha256sum