# kaal:claim:3962614-030

**Claim.** The basic VC DAO model mixes fungible cryptocurrency investment with minted non fungible reputation, and this duality prevents the full benefits that are generated when non fungible reputation is staked alone on deals.

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

**Holds when.**

- early phase VC DAO models that combine capital and reputation staking

**Source quote.**

> Rather, the VC DAO GP invests both fungible cryptocurrency from a pool as well as non-fungible and minted reputation on the portfolio companies. This duality does not allow for the full benefits that are generated if non-fungible reputation is staked alone on the deals.

**From.** Wulf A. Kaal, *REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu* (2021), V.1. Basic Model, page 17

**Cite as.** Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614

**Verify.** sha256 of source PDF `c6e202e77fd08db801f932774026458b94e5d103abf30cb1189fe6a1c5edf391` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20REPUTATION%20AS%20CAPITAL%20%E2%80%93%20How%20Decentralized%20Autonomous%20Organizations%20Address%20Shortcomings%20in%20the%20Ventu.pdf

**Failure mode.** Capital reputation duality dilution  (family: token-transferability-defect)

**Topics.** reputation, dao

**Keywords.** reputation-staking, model-design, hybrid-model, dao

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