# kaal:claim:3402701-032

**Claim.** The day-to-day stability mechanism can be fully automated by algorithm, but monetary and fiscal policy choices cannot be: the algorithm's parameters must be chosen by hand and adjusted regularly to balance security against efficiency.

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

**Holds when.**

- stability mechanisms operating in changing markets

**Source quote.**

> However, monetary and fiscal policy choices cannot be fully automated. The parameters for the algorithm must be chosen by hand and adjusted regularly to balance security with maximal efficiency in response to network performance

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies - First Order Principles* (2019), 3.4.1 Features Subject to Monetary and Fiscal Policy, page 25

**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.** limits-of-full-automation  (family: smart-contract-rigidity)

**Topics.** governance-design, tokenomics

**Keywords.** governance, automation-limits, monetary-policy, parameter-choice

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