# kaal:claim:3782210-032

**Claim.** Because reputation tokens are constantly created, the reputation economy is inflationary, and a member with very high reputation must do proportionally more work merely to maintain the disparity, which makes reputation less likely to concentrate and acts as a natural counterbalance to accumulation of individual power.

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

**Holds when.**

- steady state growth, not exponential growth of customers
- members of comparable talent

**Source quote.**

> If one member happens to have a very high reputation, they need to do proportionally more work to maintain the disparity, making reputation less likely to concentrate when people have comparable talent.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of Reputation for the Evolution of Decentralization* (2021), Security, page 11

**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.** tokenomics, decentralization, economics

**Keywords.** inflation, power-concentration, decentralization, token-economics

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