# kaal:claim:3962614-037

**Claim.** A better system emphasizes reputation by prohibiting capital investment into portfolio companies after an initial minting of reputation in proportion to incoming capital.

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

**Holds when.**

- the incentive optimized reputation model with smart contracts

**Source quote.**

> A better system would avoid this scenario by emphasizing the reputation in the system by prohibiting capital investment into portfolio companies after an initial minting of reputation in proportion to incoming capital.

**From.** Wulf A. Kaal, *REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu* (2021), V.4. Incentive Optimized Reputation Model with Smart Contracts, page 21

**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

**Topics.** risk-and-incentives, reputation, dao

**Keywords.** incentive-design, reputation-minting, capital-prohibition, dao

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