kaal:claim:3782203-039

Because the Folk Theorems rule out a perfect reward system, the design goal for a DAO should be reduced to making it easier for members to help the group than to hurt it, with members themselves incentivized to police bad actors to protect their own profits.

Source quote, verbatim

From the Folk Theorems, we know we cannot set up a perfect system. The best we can hope for, is to design a system which makes it easier to help the group than to hurt it.

From

Craig Calcaterra, Wulf A. Kaal, A Technical Perspective on Decentralization (2021), How to build a DAO, p. 22
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

leaderless DAOs with anonymous members
no external enforcement available

Classification

designsupport: argueddaorisk-and-incentives

Verify

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