# kaal:claim:3441904-029

**Claim.** Facts based, ex post, trial and error rulemaking with stable and presumptively optimal rules is incompatible with the needs of decentralized systems, because knowledge filters in at the edges of such systems and cannot be encapsulated in a timely fashion.

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

**Holds when.**

- decentralized smart contracting and DAO environments

**Source quote.**

> Centralized governance via stable and presumptively optimal rules in an environment of decentralized smart contracting and DAOs further exacerbates the shortcomings of stable and presumptively optimal rules in centralized structures.

**From.** Wulf A. Kaal, *Blockchain-Based Corporate Governance* (2019), IV.1 Shortcomings of Centralized Governance in Decentralized Systems, page 25

**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.** static-rulemaking-mismatch  (family: rule-obsolescence-and-ossification)

**Topics.** dynamic-regulation, decentralization

**Keywords.** dynamic-regulation, rulemaking, decentralization, regulatory-timing

**Related claims.**

- specializes: https://wulfkaal.github.io/claims/2808132-002
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- specializes: https://wulfkaal.github.io/claims/2267560-025
- extends: https://wulfkaal.github.io/claims/2808132-018

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