# kaal:claim:3402701-011

**Claim.** 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.

**Type.** failure  **Support.** argued

**Holds when.**

- any fixed protocol, however complex

**Source quote.**

> 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, page 17

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

**Verify.** sha256 of source PDF `72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies%20-%20First%20Order%20Principles.pdf

**Failure mode.** patient-powerful-player-subversion  (family: consensus-and-protocol-attack)

**Topics.** economics, governance-design

**Keywords.** folk-theorems, game-theory, protocol-subversion, governance

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3782192-017
- extended_by: https://wulfkaal.github.io/claims/3782220-004
- extended_by: https://wulfkaal.github.io/claims/3406323-040
- extended_by: https://wulfkaal.github.io/claims/3782193-011
- extended_by: https://wulfkaal.github.io/claims/3782210-022

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