# kaal:claim:3396542-030

**Claim.** Barring highly adverse market conditions, the DAO's ability to mint and sell tokens on demand functions as capital on tap and protects the DAO from default and bankruptcy.

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

**Holds when.**

- not highly adverse market conditions

**Source quote.**

> Barring highly adverse market conditions, the availability of "capital on tap" protects the DAO from default and bankruptcy.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Decentralized Underwriting* (2019), VI. Conclusion, page 25

**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.** risk-and-incentives, tokenomics

**Keywords.** capital-on-tap, default-risk, capital-regulation, token-minting

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