Charging an admission or denial of service fee to become a voting associate disincentivizes betrayal and defection, because the sunk cost of joining makes cheating expensive even where associates can remain anonymous.
Source quote, verbatim
- The CHARITYxDAO disincentivize betrayal and defection by charging an admission fee, ie. DoS fee to become a CHARITYxDAO VA. Given the sunk cost of joining the CHARITYxDAO, it is more expensive for prospective VAs to cheat because it would be expensive to rejoin even if VAs could be anonymous.
From
Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021), Governance, Reputation Staking for the Common Good, p. 28 https://ssrn.com/abstract=3981021 · source PDF
Cite as
Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021
Holds when
DAO membership with paid admission and blacklisting
Classification
mechanismsupport: arguedeconomicsdao
Related claims
restateskaal:claim:3799320-035 Charging an admission fee disincentivizes betrayal and defection, because the sunk cost of joining makes cheat...
restateskaal:claim:3782203-031 Charging admission to a DAO disincentivizes defection because the sunk cost of joining makes cheating expensiv...
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