The more reputation replaces capital, the less capital must be allocated, tied and encumbered, which raises the ratio of unencumbered capital available to be newly deployed.
Source quote, verbatim
The more reputation replaces capital the less capital has to be allocated, tied, and encumbered. In turn, the ratio of capital becoming unencumbered through reputation increases the deployment of capital ratio, e.g. a higher proportion of unencumbered capital can be newly encumbered.
Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098
Holds when
reputation is encumbered and tied to an asset in place of capital
Classification
mechanismsupport: argueddefireputation
Related claims
extended_bykaal:claim:3962614-043 Reputation as capital has the potential to lower capital requirements for VC businesses significantly and to i...
Verify
The quote above is an exact substring of the source PDF, whose sha256 is 04297905564a6092b2db7640561f58fd374d3114c79527357bad09d11b909819. Extraction method: pdf-text-layer. Attestation record: colloquium/attestations/d9136454e0699347...json Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3949098-007.md | sha256sum