# kaal:claim:3782210-042

**Claim.** Self-executing, self-regulating smart contracts between anonymous parties in an open system create a near perfect zero-sum situation unless the DAO also includes reputation.

**Type.** failure  **Support.** argued

**Holds when.**

- open systems
- anonymous counterparties
- code-is-law smart contract execution

**Source quote.**

> Self-executing, self-regulating smart contracts between anonymous parties in an open system, create a near perfect zero- sum situation—unless your DAO also includes reputation.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of Reputation for the Evolution of Decentralization* (2021), Summary, page 15

**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

**Failure mode.** Smart contract zero-sum trap  (family: staking-and-incentive-misalignment)

**Topics.** smart-contracts, reputation, dao

**Keywords.** smart-contracts, zero-sum, anonymity, reputation, dao-design

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3266953-015
- specializes: https://wulfkaal.github.io/claims/3782193-031

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