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.
Source quote, verbatim
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). SSRN: https://ssrn.com/abstract=3799320
Holds when
members who can be blacklisted
anonymous membership
Classification
mechanismsupport: arguedeconomics
Related claims
restated_bykaal:claim:3981021-032 Charging an admission or denial of service fee to become a voting associate disincentivizes betrayal and defec...
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