The opportunity loss from having reputation slashed grows as the network grows, because a larger network means more competition for the reputation tokens that determine fungible salary shares.
Source quote, verbatim
In the DAO of DAOs design the loss of opportunity from slashing DAO of DAOs member reputation grows as the size of the network increases. In other words, the larger the DAO of DAOs network, the more competition for reputation tokens to receive fungible token salaries.
Wulf A. Kaal, A Decentralized Autonomous Organization (DAO) of DAOs (2021). SSRN: https://ssrn.com/abstract=3799320
Holds when
network growth
salary allocated in proportion to reputation
Classification
mechanismsupport: arguedinstitutional-design
Related claims
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restateskaal:claim:3782203-034 The deterrent power of reputation tokens grows with network size, because the loss of opportunity from having ...
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