# kaal:claim:4033886-014

**Claim.** Redemption contracts, the traditional price commitment device for privately issued money, lack credibility, whereas pre programmed smart contracts deliver an enforceable and secure quantity commitment instead.

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

**Holds when.**

- issuers of privately issued money

**Source quote.**

> Such redemption contracts lack credibility.31 In contrast, the pre-programmed smart contract's enabled by cryptocurrencies facilitate an enforceable and secure quantity commitment.32

**From.** Wulf A. Kaal, Samuel Evans, Hayley Howe, *Digital Asset Valuation* (2022), II.2 Impact of Digital Asset Characteristics on Valuation, page 12

**Cite as.** Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886

**Verify.** sha256 of source PDF `52ba05b1292b1be4bfaf1ee5cf56b14fea9c196d870603e794d7ee316df129bd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20et%20al.%20-%202022%20-%20Digital%20Asset%20Valuation.pdf

**Failure mode.** non credible redemption contract  (family: valuation-and-pricing-failure)

**Topics.** smart-contracts, reputation, tokenomics

**Keywords.** redemption-contracts, quantity-commitment, smart-contracts, monetary-credibility

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