# kaal:claim:3782210-022

**Claim.** Because eternally perfect protocols are impossible, as illustrated by Arrow's Impossibility Theorem and the Folk Theorems of Game Theory, the remedy is not a better static ruleset but a system that continually improves its protocols and smart contracts in reaction to market change.

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

**Holds when.**

- governance systems that must adapt over time

**Source quote.**

> The impossibility of creating eternally perfect protocols, as illustrated by Arrow's Impossibility Theorem and the Folk Theorems of Game Theory, is addressed by a sys- tem which continually improves protocols and smart contracts to react to changes in the market.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of Reputation for the Evolution of Decentralization* (2021), Consequences of the architecture, page 8

**Cite as.** Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210

**Verify.** sha256 of source PDF `9cc531ab239f6266c8aeddcc8e54f4c06029c44e825444bee137bbcc0c9d0a8e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20Reputation%20for%20the%20Evolution%20of%20Decentralization.pdf

**Topics.** institutional-design, governance-design

**Keywords.** arrows-theorem, folk-theorems, protocol-evolution, governance

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3402701-011
- extends: https://wulfkaal.github.io/claims/3402701-036
- extends: https://wulfkaal.github.io/claims/3782193-011
- extends: https://wulfkaal.github.io/claims/3402701-007

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