# kaal:claim:3396542-018

**Claim.** 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.

**Type.** condition  **Support.** argued

**Holds when.**

- steady state model with constant M and p

**Source quote.**

> 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, page 14

**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, economics, dao

**Keywords.** collateralization, premium-setting, token-valuation, dao-design

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