# kaal:claim:3949098-039

**Claim.** Ratio adjustments are the DAOIC's key tool for strategic increases in profitability and overall policy, and they should be subject to a member vote conducted through the decentralized reputation staking governance mechanisms.

**Type.** design  **Support.** argued

**Holds when.**

- governance metrics subject to dynamic upgrade over the DAOIC life cycle

**Source quote.**

> Ratio adjustments provide a key tool for strategic increases in profitability and overall DAOIC policy. Ratio adjustments should be subject to DAOIC member vote following the decentralized reputation staking governance mechanisms (Calcaterra & Kaal et al (2019)).

**From.** Wulf A. Kaal, *Reputation as Capital – How DAOs Upgrade Finance* (2021), V. Governance Adjustments, page 32

**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

**Topics.** governance-design

**Keywords.** ratio-adjustment, governance, voting, policy-tools, daoic

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