# kaal:claim:3799320-025

**Claim.** In any open and democratic system, naturally opportunistic rational parties will attempt to circumvent and game the applicable complex static rules to increase their share of power and profit.

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

**Holds when.**

- open and democratic systems with complex static rule sets

**Source quote.**

> In any open and democratic system, naturally opportunistic rational parties will attempt to circumvent and game the sets of applicable complex static rules to increase their share of power and profit within the system.

**From.** Wulf A. Kaal, *A Decentralized Autonomous Organization (DAO) of DAOs* (2021), Governance, page 18

**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

**Failure mode.** Static rule gaming  (family: regulatory-arbitrage)

**Topics.** regulatory-failure, governance-design

**Keywords.** static-rules, gaming, opportunism, governance-design

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3652481-026
- extends: https://wulfkaal.github.io/claims/3441904-035

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