# kaal:claim:3808852-016

**Claim.** The DAO focus on enhancing the value of fungible tokens can produce short termism and can cause ethical and governance issues to be ignored, even as it frees non-performance reputational penalties from racial and cultural bias.

**Type.** failure  **Support.** argued

**Holds when.**

- applies where DAO membership is organized around fungible token value

**Source quote.**

> Yet, the focus on the value enhancement of fungible tokens can lead to short termism and may ignore ethical and governance issues.

**From.** Wulf A. Kaal, *Decentralization and Feedback Effects* (2021), III. Organizational Decentralization, page 12

**Cite as.** Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852

**Verify.** sha256 of source PDF `31e91158fdeefebc2f0be54ebf89751f7cdd4c89ecea932888f5ba9be6b1caba` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20and%20Feedback%20Effects.pdf

**Failure mode.** token value short termism  (family: scalability-and-throughput-limit)

**Topics.** dao, risk-and-incentives, governance-design, tokenomics

**Keywords.** dao, short-termism, governance-failure, token-design

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3799320-005
- restates: https://wulfkaal.github.io/claims/3782201-027
- extends: https://wulfkaal.github.io/claims/3652481-010
- extends: https://wulfkaal.github.io/claims/3373393-033

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