# kaal:claim:3782216-011

**Claim.** Applying Web3 technology to chit funds replaces the foremen and their commission with smart contracts, which eliminates the risk that a foreman absconds with the fund.

**Type.** design  **Support.** argued

**Holds when.**

- chit fund style rotating savings and lending schemes

**Source quote.**

> First, smart contracts replace the foremen and their d% commission, eliminating the risk of a foreman absconding with the fund.

**From.** Craig Calcaterra, Wulf A. Kaal, *Decentralized Finance (DeFi)* (2021), Chit fund example

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216

**Verify.** sha256 of source PDF `f1739743aa06bbc1641cd65da790d531b69d8628ea3f5cc3fcad1bf5a1242373` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Decentralized%20Finance%20%28DeFi%29.pdf

**Topics.** defi, smart-contracts, decentralization

**Keywords.** chit-funds, microlending, smart-contracts, disintermediation

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/5254152-006

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