# kaal:claim:5887242-038

**Claim.** Existing rulemaking bodies are financially compromised at the source: legislatures depend on taxation or political patronage, and private standard-setting bodies depend on dues, sponsorships or foundation grants that create capture risks.

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

**Source quote.**

> Legislative bodies are funded by taxation or political patronage. Private standard-setting bodies rely on dues, sponsorships, or foundation grants that create capture risks.

**From.** Wulf A. Kaal, *The UDLC DAO Operationalizing a Continuously Evolving Universal Digital Law Codex Through Weighted* (2025), Chapter V.5, page 25

**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

**Failure mode.** funding-capture-of-standard-setters  (family: regulatory-capture-and-incumbent-advantage)

**Topics.** regulatory-failure, risk-and-incentives

**Keywords.** funding-model, capture-risk, standard-setting, patronage

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