# kaal:claim:3441904-013

**Claim.** Unlike corporate governance systems, the decentralized nexus of incomplete smart contracts has no supply of majoritarian default rules to fill its gaps, and corporate law's default rules are largely incompatible because they are based on natural language.

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

**Holds when.**

- blockchain based entities organized through smart contracts

**Source quote.**

> Unlike existing corporate governance systems, however, the decentralized nexus of incomplete smart contracts does not have a supply of majoritarian default rules that could fill incomplete code-based smart contracts.

**From.** Wulf A. Kaal, *Blockchain-Based Corporate Governance* (2019), III. Governance Shortcomings in DAOs, page 13

**Cite as.** Wulf A. Kaal, Blockchain-Based Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3441904

**Verify.** sha256 of source PDF `e6b562527f7f19accaa35491db0a0db168b6a936755e1dca424e9f30bee7a815` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Blockchain-Based%20Corporate%20Governance.pdf

**Failure mode.** missing-default-rules  (family: smart-contract-rigidity)

**Topics.** dao

**Keywords.** default-rules, incomplete-contracts, natural-language, dao

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