# kaal:claim:3799320-013

**Claim.** Effective institutional governance requires a duality of incentives, namely incentives for actors to improve their own utility while their actions simultaneously benefit the whole institution over the long run, in order to defeat rational and opportunistic attempts to game the design.

**Type.** condition  **Support.** argued

**Holds when.**

- institutions with rational, opportunistic internal and external constituents

**Source quote.**

> Human nature and any effective machine derivatives of human engagements in institutional form require a duality of incentives in order to overcome attempts of rational and opportunistic internal and external constituents to game the governance design of a given DAO.

**From.** Wulf A. Kaal, *A Decentralized Autonomous Organization (DAO) of DAOs* (2021), Suboptimal Incentive Design, page 11

**Cite as.** Wulf A. Kaal, A Decentralized Autonomous Organization (DAO) of DAOs (2021). SSRN: https://ssrn.com/abstract=3799320

**Verify.** sha256 of source PDF `c3dff852f2d3f04718c829a24189309a7db4d92d84f6045d3d4f562d87c03e63` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20A%20Decentralized%20Autonomous%20Organization%20%28DAO%29%20of%20DAOs.pdf

**Topics.** risk-and-incentives, regulatory-failure, institutional-design

**Keywords.** duality-of-incentives, incentive-design, gaming-resistance, institutional-design

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3652481-019
- restated_by: https://wulfkaal.github.io/claims/3808873-037
- restates: https://wulfkaal.github.io/claims/3441904-018

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