# kaal:claim:3782193-034

**Claim.** Focusing rewards on reputation rather than on immediately fungible cash encourages decentralized organization because it disperses power fairly: anyone with equivalent talent is equally acceptable, those already employed are unavailable, and the exponential rich-get-richer concentration of power is diminished.

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

**Holds when.**

- networks that reward members with reputation rather than immediate cash

**Source quote.**

> Finally, a focus on reputation instead of immediately fungible cash rewards encour- ages decentralized organization because it disperses power, and it does so fairly.

**From.** Craig Calcaterra, Wulf A. Kaal, *Historical Sketches of Centralization vs. Decentralization* (2021), Maghribi traders’ solution, page 28

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021). SSRN: https://ssrn.com/abstract=3782193

**Verify.** sha256 of source PDF `74df9cc9a19a098bdacd0424a4174795f6e184f7a31c8ee7541195186701ebd2` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Historical%20Sketches%20of%20Centralization%20vs.%20Decentralization.pdf

**Topics.** reputation, decentralization

**Keywords.** reputation, power-dispersion, meritocracy, matthew-principle, decentralization

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