kaal:claim:3441904-039

Community driven audits work in DAOs and rarely in centralized systems because the users of the system typically know best how to assess other members, whereas centralized incentive design does not enable incorruptible internal controls.

Source quote, verbatim

The decentralized nature of DAOs enhances efficiency of coordination because the users of the system, e.g. DAO members, typically know best how to assess other users / DAO members.

From

Wulf A. Kaal, Blockchain-Based Corporate Governance (2019), V.3 Incentive Alignment, p. 35
https://ssrn.com/abstract=3441904 · source PDF

Cite as

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

Holds when

DAO governance equipped with an effective incentive design

Classification

mechanismsupport: arguedcompliancedao

Related claims

supports kaal:claim:3266953-036 The Persona Protocol redistributes power toward people who have no agency in centralized systems, because comm...

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