kaal:claim:3799320-035

Charging an admission fee disincentivizes betrayal and defection, because the sunk cost of joining makes cheating expensive when rejoining would also be expensive even under anonymity.

The DAO of DAOs disincentivizes betrayal and defection by charging an admission fee to become a DAO of DAOs member. Given the sunk cost of joining the DAO of DAOs, it is more expensive for prospective members to cheat because it would be expensive to rejoin even if members could be anonymous.

Wulf A. Kaal, A Decentralized Autonomous Organization (DAO) of DAOs (2021), Game-theoretical Design, p. 22
https://ssrn.com/abstract=3799320 · source PDF

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

• members who can be blacklisted
• anonymous membership

mechanismsupport: arguedeconomics

• restated_by kaal:claim:3981021-032 Charging an admission or denial of service fee to become a voting associate disincentivizes betrayal and defec...

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