In the theoretical model, the incentive design of decentralized reputation staking governance aligns the individual with the group so tightly that the agent cannot gain personally at the expense of the principal.
Source quote, verbatim
aligns the interests of the individual with the interest of the group. In other words, the incentives of the principal, e.g. the group, and the individual are aligned so much that the agent cannot gain personally at the expense of the principal.
From
Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021), II. Basic Concept, 4. Decentralized Underwriting, p. 14 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
theoretical model
adoption of the decentralized reputation staking governance mechanisms
extendskaal:claim:3652481-004 A DAO realigns the otherwise disparate interests of principals and agents because all participants in the DAO ...
extendskaal:claim:3396542-005 Tokens in the proposed DAO function as reputation because an agent's proportional token holdings will grow ove...
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