# kaal:claim:4796714-016

**Claim.** Decentralized governance structures impose their own costs: with no central authority to coordinate diverse stakeholders, consensus is difficult to reach, negotiations are prolonged, and enforcement of agreements is weak because no single entity is responsible for compliance.

**Type.** failure  **Support.** evidenced

**Holds when.**

- applies to decentralized structures without a coordinating authority
- evidenced in the paper by the environmental agreement domain

**Source quote.**

> In decentralized systems, the lack of a central authority often leads to difficulties in coordinating and achieving consensus among diverse stakeholders, each with their own priorities and objectives. This can result in prolonged negotiations or weak enforcement of agreements

**From.** Wulf A. Kaal, *AI Governance* (2024), Challenges, page 29

**Cite as.** Wulf A. Kaal, AI Governance (2024). SSRN: https://ssrn.com/abstract=4796714

**Verify.** sha256 of source PDF `59fa63bae179e8f9b6b8efbdf90cee28400276512a1b04f9f579a48641305c93` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202024%20-%20AI%20Governance.pdf

**Failure mode.** decentralized coordination failure  (family: collective-action-and-coordination-failure)

**Topics.** decentralization, institutional-design, compliance, consensus-and-security, governance-design

**Keywords.** decentralization, coordination-costs, enforcement, consensus, governance-design

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.