# kaal:claim:3949098-028

**Claim.** In phase 1 the benefits of decentralization remain relatively small because the presumably homogenous DAOIC member group generates little dissent in reputation based decision making.

**Type.** failure  **Support.** argued

**Holds when.**

- small and homogenous membership
- phase 1 of the DAOIC life cycle

**Source quote.**

> The DAOIC member group is also presumably homogenous, dissent will be small in the RFNT-based decision-making processes. Accordingly, the benefits from decentralization are still relatively small in phase 1.

**From.** Wulf A. Kaal, *Reputation as Capital – How DAOs Upgrade Finance* (2021), III. Toy Model, 1. Phase 1 - Priming the Pump, page 19

**Cite as.** Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098

**Verify.** sha256 of source PDF `04297905564a6092b2db7640561f58fd374d3114c79527357bad09d11b909819` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Reputation%20as%20Capital%20%E2%80%93%20How%20DAOs%20Upgrade%20Finance.pdf

**Failure mode.** Homogeneity Suppresses Decentralization Benefits  (family: governance-participation-collapse)

**Topics.** decentralization

**Keywords.** decentralization, homogeneity, dissent, information-from-the-edges, phase-model

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