# kaal:claim:3808873-038

**Claim.** When fungible assets are the dominant incentive design in the governance of DAOs with identifiable actors, rational and opportunistic internal and external participants will typically attempt to corrupt the governance design for their own gain; merit identifiers other than individual identity remove the most corruptive influences.

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

**Holds when.**

- DAO governance using fungible assets and identifiable actors

**Source quote.**

> When fungible assets are used as the dominant incentive design in the governance of DAOs with identifiable actors, rational and opportunistic internal constituents and external participants will typically attempt to corrupt the governance design of the DAO for their own gain.

**From.** Wulf A. Kaal, *Decentralization Neutralizers* (2021), XI. Lack of Decentralized Governance Systems, page 31

**Cite as.** Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873

**Verify.** sha256 of source PDF `f11493915e6b8c266d421510b5546816e33defb5650aac9d09b20d78549da727` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20Neutralizers.pdf

**Failure mode.** Fungible Asset Governance Corruption  (family: plutocratic-capture)

**Topics.** dao, governance-design

**Keywords.** fungible-assets, corruption, anonymous-merit, dao-governance, non-fungible-assets

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3799320-014
- extends: https://wulfkaal.github.io/claims/3652481-021
- extends: https://wulfkaal.github.io/claims/3799320-015
- extends: https://wulfkaal.github.io/claims/3652481-020
- specializes: https://wulfkaal.github.io/claims/3441904-018

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