kaal:claim:3936876-040

Delegation of rights to custody providers is only an incremental step toward centralization via delegation to third party investment managers, and it opens a floodgate because each additional level of investment discretion over digital assets exacerbates centralization concerns and compounds rent seeking suboptimalities.

Source quote, verbatim

This becomes a floodgate issue, as each level of investment discretion over digital assets exacerbates the centralization concerns and compounds the rent seeking suboptimalities.

From

Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021), IV. Conclusion, p. 32
https://ssrn.com/abstract=3936876 · source PDF

Cite as

Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

Holds when

delegation chains that begin with custody and extend to discretionary management

Classification

failuresupport: arguedfailure: delegation floodgatefamily: recentralization-driftgovernance-designdecentralizationdefi

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