# kaal:claim:3402701-034

**Claim.** Centralized hierarchies and decentralized flat organizations fail in opposite ways: hierarchies filter out information signals at the edge, while flat organizations amplify edge noise so important information never finds a champion to drive action.

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

**Source quote.**

> Decentralized flat organizations have a tendency to fail from the inverse quality of amplifying the noise at the edge, so that important information cannot find its champion to lead to useful action

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies - First Order Principles* (2019), 3.4.2 Communication Design, page 26

**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.** signal-noise-imbalance  (family: collective-action-and-coordination-failure)

**Topics.** decentralization

**Keywords.** communication-design, centralization, decentralization, signal-noise

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