Best efforts underwriting in the DAOIC is implemented as a smart contract accountability system: a member's capital commitment is encumbered as a deposit and released to the token opportunity only after the reputation staking pool decides, and funding occurs only on a majority upvote.
Source quote, verbatim
Such deposit will only be released and directly transferred to the token opportunity when the RNFT staking pool has made a decision on the token opportunity. Funding only happens in the case of a majority upvote.
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
best efforts underwriting via RNFT staking
Classification
designsupport: arguedsmart-contractsdefi
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