# kaal:claim:3782201-027

**Claim.** Because DAO performance assessment is based on optimizing fungible token value rather than on hierarchical or political processes, the focus on token value enhancement can lead to short termism and may cause ethical and governance issues to be ignored.

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

**Holds when.**

- DAO designs inheriting the path dependencies of the 2016 DAO
- fungible token based membership

**Source quote.**

> Yet, the focus on the value en- hancement of fungible tokens can lead to short-termism and may ignore ethical and governance issues.

**From.** Craig Calcaterra, Wulf A. Kaal, *Future of Decentralization* (2021), The 2016 DAO, page 24

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Future of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782201

**Verify.** sha256 of source PDF `bedf7bcfbb7a9b0112b5848cb0d941b1d41f330dafeee0143a30ff5e8aa53700` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Future%20of%20Decentralization.pdf

**Failure mode.** token value short termism  (family: scalability-and-throughput-limit)

**Topics.** dao, governance-design, risk-and-incentives, tokenomics

**Keywords.** dao-governance, short-termism, token-incentives, path-dependency

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3808852-016
- restated_by: https://wulfkaal.github.io/claims/3799320-005
- extends: https://wulfkaal.github.io/claims/3652481-010

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