# kaal:claim:5583610-007

**Claim.** Traditional corporate loyalty programs fail because they saddle issuers with delayed obligations and cannot hold participants without pushing them toward speculation; LER is designed to avoid both defects.

**Type.** failure  **Support.** asserted

**Holds when.**

- conventional deferred-liability loyalty programs

**Source quote.**

> It addresses the drawbacks of traditional loyalty programs, which frequently cause businesses to incur delayed obligations and find it difficult to hold onto assets without engaging in hazardous speculation.

**From.** Wulf A. Kaal, *Liquid Equity Rewards in Corporate America* (2025), 2.1. How LER Works, page 6

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

**Verify.** sha256 of source PDF `2d73609d95ddb1573acc2a9e7af617fbe6283d6e591deb6317f6d5d804517c62` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards%20in%20Corporate%20America.pdf

**Failure mode.** deferred obligation drag  (family: staking-and-incentive-misalignment)

**Topics.** institutional-design

**Keywords.** loyalty-programs, deferred-liabilities, speculation, program-design

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