# kaal:claim:6819121-007

**Claim.** Arrow's theorem, the Folk Theorems, and Incomplete Contract Theory together constitute a proof that rule stability is institutionally self-defeating, so the framework builds a system that governs its own evolution rather than aspiring to a stable rule set.

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

**Holds when.**

- the Calcaterra-Kaal institutional framework

**Source quote.**

> Together, the three results constitute a proof that rule stability is institutionally self-defeating. The framework's response is to build a system that governs its own evolution rather than a system that aspires to a stable rule set that the three theorems show cannot exist.

**From.** Wulf A. Kaal, *The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis* (2026), II. Theoretical Framework, page 6

**Cite as.** Wulf A. Kaal, The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis (2026). SSRN: https://ssrn.com/abstract=6819121

**Verify.** sha256 of source PDF `f04b274f926d23848e77b429a13227baed9858b90fec826ddaabd2acca7035fe` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20The%20Institutional%20Deficit%20in%20Decentralized%20Autonomous%20Organizations%20-%20An%20Empirical%20Analysis.pdf

**Topics.** institutional-design, governance-design, decentralization

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