kaal:claim:3402701-010

Distributing newly minted coins to shareholders, as Basis planned, is exploitable: shareholders can collude to hold their new money and drive the price up, which triggers further minting that benefits the colluders.

Source quote, verbatim

However, it is possible the shareholders would collude to drive the price up by holding their new money

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019), 3.1.1 Minting, p. 16
https://ssrn.com/abstract=3402701 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

Holds when

new supply distributed to an identifiable shareholder group

Classification

failuresupport: arguedfailure: shareholder-collusion-on-mintingfamily: staking-and-incentive-misalignmentrisk-and-incentives

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