kaal:claim:3782203-037

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.

From

Craig Calcaterra, Wulf A. Kaal, A Technical Perspective on Decentralization (2021), Application to reputation tokens, p. 21
https://ssrn.com/abstract=3782203 · source PDF

Cite as

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

extended_by kaal:claim:3981021-035 Punishment for nefarious conduct becomes credible when it is automated, and the value of a voting associate's ...
supported_by kaal:claim:6269518-016 Because policing protocol deviants is expensive, it is individually more efficient to assume others comply and...

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