kaal:claim:3949098-002

Reputation tokens used in decentralized finance are more meaningful and easier to value than traditional identity verification metrics, so decentralized protocols that use reputation metrics will require less collateralization than traditional protocols.

Source quote, verbatim

Reputation tokens that are utilized in decentralized finance are more meaningful than traditional identity verification metrics, and much easier to value. Accordingly, decentralized protocols that use reputation metrics will require less collateralization than in traditional protocols.

From

Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021), I. Introduction, p. 5
https://ssrn.com/abstract=3949098 · source PDF

Cite as

Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098

Holds when

reputation is incorporated securely into the Web3 environment

Classification

mechanismsupport: arguedreputationtokenomicsdefi

Related claims

restates kaal:claim:3782216-037 Once secure and meaningful reputation is incorporated into Web3, the collateral imbalance will reverse, and be...

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