kaal:claim:3949098-019

Reputation non fungible token staking removes counterparty risk because the desire to preserve and increase reputation scores dominates DAOIC decision making, making bad actors less likely to appear since their reputation would inevitably suffer.

Source quote, verbatim

Similarly, RNFT staking by DAOIC members removes counterparty risk. The desire to preserve and increase RNFT scores predominates the DAOIC decision making. Therefore, bad actors are less likely to occur in the system as their reputation would inevitably suffer.

From

Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021), II. Basic Concept, 3. Risk Optimization, p. 13
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 scores are durable and visible to the group

Classification

mechanismsupport: arguedrisk-and-incentives

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