# kaal:claim:3782214-022

**Claim.** The main problem with all current peer to peer governance structures is the lack of proper incentivization: participants are not motivated to improve the whole organization over the long term, so they game the system for short term personal profit.

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

**Holds when.**

- short term fungible rewards are available

**Source quote.**

> The main problem with all current PCP governance structures (such as they are) is the lack of proper incentivization. In business or in government, all participants need to be motivated to improve the whole organization over the long term.

**From.** Craig Calcaterra, Wulf A. Kaal, *Decentralized Governance* (2021), Reputation counters instability from profit motive, page 10

**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

**Failure mode.** incentive deficit  (family: staking-and-incentive-misalignment)

**Topics.** risk-and-incentives, governance-design

**Keywords.** incentive-design, governance-failure, short-termism, protocol-governance

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