kaal:claim:3782216-013

A decentralized chit fund can let people bootstrap financial security with no initial reserve backing, but only if the reputation system is strong enough to hold defaults to a low percentage.

Source quote, verbatim

With no initial reserve backing, this allows people to bootstrap their way to greater financial security and stability, assuming the reputation system is sufficiently strong to guarantee a low percentage of defaults.

From

Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021), Chit fund example
https://ssrn.com/abstract=3782216 · source PDF

Cite as

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

Holds when

requires a sufficiently strong reputation system

Classification

conditionsupport: arguedreputation

Verify

The quote above is an exact substring of the source PDF, whose sha256 is f1739743aa06bbc1641cd65da790d531b69d8628ea3f5cc3fcad1bf5a1242373. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/55059d031cc118da...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3782216-013.md | sha256sum