# kaal:claim:6819121-032

**Claim.** Market discipline alone will not produce balanced institutional development, because it under-invests in the invisible institutional infrastructure that is most predictive of long-run resilience.

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

**Holds when.**

- the public-goods argument applied to the DAO sector

**Source quote.**

> the visibility paradox implies that market discipline alone will not produce balanced institutional development. Market discipline produces under-investment in invisible institutional infrastructure, and the institutional infrastructure that is most predictive of long-run resilience is precisely the institutional infrastructure that is most underprovided.

**From.** Wulf A. Kaal, *The Institutional Deficit in Decentralized Autonomous Organizations - An Empirical Analysis* (2026), IX. Implications, page 34

**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.** regulatory-failure, institutional-design, economics

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.