kaal:claim:3949098-007

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.
From

Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021), II. Basic Concept, 2. Liquidity, p. 7
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
Classification

mechanismsupport: argueddefireputation

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