kaal:claim:7322599-003

The flaw in bonded-stake deterrence is structural, not a matter of detection, latency, or adjudication error: a bond refunded on clean exit is an asset the operator carries out the door, raising walk-away value by the honest-release value of the principal — release pads the walk.

Source quote, verbatim

The flaw is not detection, latency, or adjudication error, although each is priced in the model. The flaw is structural: a bond that is refunded on clean exit is an asset the operator carries out the door. It raises the operator’s walk-away value by the honest-release value of the principal, while misconduct changes recovery only through the filing-, freeze-, adjudication-, and slash-weighted recovery wedge; custody carry further reduces capacity. Release pads the walk.

From

Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026), 1 Introduction, p. 3
https://ssrn.com/abstract=7322599 · source PDF

Cite as

Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026). SSRN: https://ssrn.com/abstract=7322599

Holds when

long-lived delegated relationships with refundable collateral

Classification

failuresupport: arguedrisk-and-incentivesconsensus-and-securitytokenomicseconomics

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