# kaal:claim:3782216-037

**Claim.** Once secure and meaningful reputation is incorporated into Web3, the collateral imbalance will reverse, and because reputation tokens are more meaningful than identity and easier to value, less collateralization will be required than in traditional protocols.

**Type.** predictive  **Support.** argued

**Holds when.**

- requires a coherent system that securely tracks the value of a reputation token

**Source quote.**

> However, once secure and meaningful reputation is incorporated into the WebT environment, this imbalance will be reversed. Since reputation tokens are more mean- ingful than identity, and much easier to valuate, even less collateralization will be re- quired than traditional protocols

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

**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.** reputation, tokenomics, defi

**Keywords.** reputation-tokens, collateral, defi, competitive-advantage

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3949098-002

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