kaal:claim:5887242-020

Tight coupling creates an exponential penalty for contrarian positions, since a participant staking ten percent of reputation against consensus risks total loss of that stake while correct majority stakers receive newly minted fractional REP proportional to their contribution.

This creates an exponential penalty for contrarian positions: a participant staking 10% of their reputation against consensus risks total loss of that stake, while correct majority stakers receive newly minted fractional REP proportional to their contribution to the winning side.

Wulf A. Kaal, The UDLC DAO Operationalizing a Continuously Evolving Universal Digital Law Codex Through Weighted (2025), Chapter III.B.3, p. 10
https://ssrn.com/abstract=5887242 · source PDF

Wulf A. Kaal, The UDLC DAO Operationalizing a Continuously Evolving Universal Digital Law Codex Through Weighted (2025). SSRN: https://ssrn.com/abstract=5887242

mechanismsupport: arguedrisk-and-incentives

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