# kaal:claim:3441904-039

**Claim.** 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.

**Type.** mechanism  **Support.** argued

**Holds when.**

- DAO governance equipped with an effective incentive design

**Source quote.**

> 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, page 35

**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

**Topics.** compliance, dao

**Keywords.** community-audits, monitoring, information-symmetry, dao

**Related claims.**

- supports: https://wulfkaal.github.io/claims/3266953-036

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