# kaal:claim:3949098-040

**Claim.** 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.

**Type.** mechanism  **Support.** argued

**Holds when.**

- decentralized investment vehicles using reputation staking

**Source quote.**

> 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, page 34

**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.** reputation, defi, decentralization

**Keywords.** reputation-as-capital, liquidity, capital-deployment, decentralized-investment

**Superseded by.** A later claim revises this one. Prefer quoting: https://wulfkaal.github.io/claims/3962614-029

**Related claims.**

- supported_by: https://wulfkaal.github.io/claims/3962614-005
- extended_by: https://wulfkaal.github.io/claims/3962614-028

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.