kaal:claim:3949098-040

Replacing capital with reputation increases liquidity because reputation takes over part of the role of capital and frees otherwise locked capital, letting decentralized investment vehicles deploy capital more effectively since reputation staking on deals requires no capital deployment.

A later claim in the corpus revises this one. Prefer quoting kaal:claim:3962614-029.

Source quote, verbatim

When reputation takes over part of the role of capital it frees up otherwise locked capital that cannot fully be utilized. Decentralized investment vehicles are able to deploy capital more effectively because reputation staking on deals does not require the deployment of capital.

From

Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021), VI. Conclusion, p. 34
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

decentralized investment vehicles using reputation staking

Classification

mechanismsupport: arguedreputationdefidecentralization

Related claims

supported_by kaal:claim:3962614-005 Because traditional fiat VC funds must maintain liquidity to support capital calls from their investors, they ...
extended_by kaal:claim:3962614-028 If reputation whales stake reputation on a project and the market commits the capital for that stake, the whal...

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Attestation record: colloquium/attestations/0f6c5fdd99eee1d8...json
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