kaal:claim:7322599-012

Making the stake captive closes the release leak but does not rescue the instrument: the surviving capacity slope is still negative in the carry cost because the walk value of the balance cancels through the surplus — the stake never mints a hostage.

Captivity does not rescue the instrument: when misconduct is punishable in place with the stake seized before any release clock runs, the leak closes, but the surviving slope is −p CF , because the walk value of the balance cancels through the surplus. The stake never mints a hostage.

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. 7
https://ssrn.com/abstract=7322599 · source PDF

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

• misconduct punishable in place with stake seized before any release clock runs

mechanismsupport: arguedrisk-and-incentivesconsensus-and-securityeconomics

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