Automating exclusion of cheaters through smart contracts makes punishment credible and removes the infinite regress of traditional enforcement, where members would have to police those who failed to police those who failed to police cheaters.
Source quote, verbatim
Algorithms can be written which exclude members who cheat from hav- ing access to their market. Punishment for cheating becomes automated and there- fore credible. Free riding in policing can at least partly be eliminated by automation.
Craig Calcaterra, Wulf A. Kaal, A Technical Perspective on Decentralization (2021). SSRN: https://ssrn.com/abstract=3782203
Holds when
DAOs where contract allocation is algorithmic
reputation thresholds enforced in code
Classification
mechanismsupport: arguedcompliancesmart-contracts
Related claims
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supported_bykaal:claim:6269518-016 Because policing protocol deviants is expensive, it is individually more efficient to assume others comply and...
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