# kaal:claim:3652481-034

**Claim.** Where a DAO's internal voting mechanism is centralized and burdened with legacy voting problems, any higher degree of decentralization achieved in its external legal design will typically be cancelled out over the long run.

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

**Holds when.**

- the internal voting mechanism is centralized or uses legacy voting designs

**Source quote.**

> For many attempts to create legal solutions, if the internal voting mechanism of a DAO is more centralized and afflicted with existing legacy voting issues, a higher degree of decentralization in the external legal design will typically be cancelled out in the long run.

**From.** Wulf A. Kaal, *Decentralized Autonomous Organizations – Internal Governance and External Legal Design* (2020), IV.2.f DevDAO, page 55

**Cite as.** Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481

**Verify.** sha256 of source PDF `530b3a40c244aeca2eb4c53f4c9b4d6b2962bd6be9f92b4ebe17139c17f4c0e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Decentralized%20Autonomous%20Organizations%20%E2%80%93%20Internal%20Governance%20and%20External%20Legal%20Design.pdf

**Failure mode.** decentralization cancellation  (family: recentralization-drift)

**Topics.** decentralization, governance-design, dao, law-and-legal-systems

**Keywords.** internal-external-duality, decentralization, voting-design, dao-legal-design

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3799320-023

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