The Folk Theorems of game theory imply that no matter how complicated a stable coin protocol becomes, a powerful and patient player has strategies to subvert the system and profit at the expense of the group.
Source quote, verbatim
No matter how complicated the protocols become for creating a stable coin, there are strategies that a powerful and patient player can use to subvert the system to profit at the expense of the group
From
Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019), 3.1.1 Minting, p. 17 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
extended_bykaal:claim:3782192-017 The Folk Theorems of game theory prove that any rules that can be formally set down can be subverted: strategi...
extended_bykaal:claim:3782220-004 Transcendental values are necessary for long-term stability because every formal, explicitly specified protoco...
extended_bykaal:claim:3406323-040 For any static set of rules in an infinitely repeated game using reputation stakes there is a way to subvert t...
extended_bykaal:claim:3782193-011 No set of written rules can be made complete: the Folk Theorems demonstrate that however rules are written, st...
extended_bykaal:claim:3782210-022 Because eternally perfect protocols are impossible, as illustrated by Arrow's Impossibility Theorem and the Fo...
Verify
The quote above is an exact substring of the source PDF, whose sha256 is 72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0. Extraction method: pdf-text-layer. Attestation record: colloquium/attestations/a04759989929eae5...json Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3402701-011.md | sha256sum