# kaal:claim:5887242-020

**Claim.** 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.

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

**Source quote.**

> 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.

**From.** Wulf A. Kaal, *The UDLC DAO Operationalizing a Continuously Evolving Universal Digital Law Codex Through Weighted* (2025), Chapter III.B.3, page 10

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

**Verify.** sha256 of source PDF `4e5c2e2b4304af6d22e0b0939b1fddeabcf091e19a1b00b7bfccf77cbd6280c5` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20The%20UDLC%20DAO%20Operationalizing%20a%20Continuously%20Evolving%20Universal%20Digital%20Law%20Codex%20Through%20Weighted.pdf

**Topics.** risk-and-incentives

**Keywords.** tight-coupling, contrarian-penalty, minting, incentives

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