# kaal:claim:3782214-018

**Claim.** Internal competition for profit creates a natural tendency to centralize power as members differentiate themselves through wins and losses, and this centralizing tendency is an additional destabilizing force on a decentralized organization.

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

**Holds when.**

- for profit organizations with internal competition

**Source quote.**

> The internal competition for profit creates the natural tendency to centralize power as the members differentiate themselves with wins and losses. This centralizing tendency is another force further destabilizing the organizations.

**From.** Craig Calcaterra, Wulf A. Kaal, *Decentralized Governance* (2021), Instability from profit motive and rigid rules, page 9

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Decentralized Governance (2021). SSRN: https://ssrn.com/abstract=3782214

**Verify.** sha256 of source PDF `ba892bb200c1455447c0014f5067a501a93ea9ec413c31942d95952eb3bdfd9d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Decentralized%20Governance.pdf

**Topics.** decentralization

**Keywords.** centralization, profit-motive, power-concentration, network-stability

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3782193-026
- restates: https://wulfkaal.github.io/claims/3782205-013
- extends: https://wulfkaal.github.io/claims/3782193-028

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