What keeps the operator honest is the relationship premium — the value of staying over leaving, composed of future earnings, standing, and the cost of starting over; the stake enters the fixed capacity identities only through the recovery wedges.
Source quote, verbatim
What keeps the operator honest is the value of the relationship itself: the premium P of staying over leaving, composed of future earnings, standing, and the cost of starting over. The stake F enters these fixed- (P, F ) identities only through the recovery wedges.
From
Wulf A. Kaal, Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets (2026), 4 The premium principle and the main result, p. 6 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
The quote above is an exact passage from the source PDF, whose sha256 is 130ee4e65fb79a9f3a96f6df22408b40c2de76e9ec8fc2bd1c68f0f6a7104333. Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/7322599-009.md | sha256sum