# kaal:claim:3981021-032

**Claim.** 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.

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

**Holds when.**

- DAO membership with paid admission and blacklisting

**Source quote.**

> - 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, page 28

**Cite as.** Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021

**Verify.** sha256 of source PDF `9d8bc78d119c780c96c89ce3e820f4ac8b037d39b3ade59feb4e40d46b048288` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20How%20Decentralized%20Autonomous%20Organizations%20Optimize%20Charitable%20Giving.pdf

**Topics.** economics, dao

**Keywords.** admission-fee, sunk-cost, defection, game-theory, dao-membership

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3799320-035
- restates: https://wulfkaal.github.io/claims/3782203-031

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