# kaal:claim:3962614-041

**Claim.** Removing capital as a necessity for deal participation creates a very high level of flexibility for DAO investment club members, allowing them to invest without ever being forced to invest, and making capital calls entirely unnecessary.

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

**Holds when.**

- DAO investment club phases where the public market funds deals

**Source quote.**

> The removal of capital as a necessity for deal participation creates a very high level of flexibility for DAOIC members. It allows the DAOIC members to invest if they so choose but it does not force them to invest, under any conditions. Capital calls are entirely unnecessary.

**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 23

**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.** institutional-design

**Keywords.** capital-calls, flexibility, capital-replacement, daoic

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