# kaal:claim:3782216-015

**Claim.** Because underwriting mints new reputation tokens, passive holders see their proportional ownership in the DAO fall over time, which is designed to incentivize agents to underwrite actively while still allowing passive investors to earn income.

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

**Holds when.**

- Underwriting DAO that rewards underwriting with newly minted tokens

**Source quote.**

> Thus, the total number of tokens grows over time. This implies that "passive" agents who hold the tokens purely to receive a share of future premia will find their proportional ownership in the DAO decrease over time.

**From.** Craig Calcaterra, Wulf A. Kaal, *Decentralized Finance (DeFi)* (2021), Decentralized architecture

**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.** dao, defi, reputation, tokenomics, risk-and-incentives

**Keywords.** underwriting-dao, reputation-tokens, dilution, incentive-design

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3396542-008
- extends: https://wulfkaal.github.io/claims/3396542-005

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