The institutional response to contract incompleteness cannot be to write more complete contracts, because that path is closed by the theorem; governance institutions must fill specification gaps as they emerge.
Source quote, verbatim
The institutional response cannot be to write more complete contracts, because that path is closed by the theorem. The response has to be to build governance institutions that can fill the specification gaps as they emerge.
From
Wulf A. Kaal, The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis (2026), II. Theoretical Framework, p. 8 https://ssrn.com/abstract=6819121 · source PDF
Cite as
Wulf A. Kaal, The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis (2026). SSRN: https://ssrn.com/abstract=6819121
Holds when
Incomplete Contract Theory applied to smart-contract governance
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