# kaal:claim:7322599-028

**Claim.** Refundable stake does not expand credible capacity in the strict long-match limit: leaky release raises walk-away value, captive regimes close the leak without a positive marginal slope, and design by stake sizing is design of the wrong variable.

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

**Holds when.**

- the strict long-match limit; margins away from the limit depend on release, filing, custody, and turnover terms

**Source quote.**

> In the strict long-match limit it does not: leaky release raises walk-away value, captive regimes close that leak without produc- ing a positive marginal principal slope, and what remains is carry. Relationship premia provide the scalable continuation-value component of deterrence, while the mechanism’s release, filing, custody, and turnover terms determine whether collateral can help at the margin away from the limit. Design by stake sizing remains design, but it is design of the wrong variable.

**From.** Wulf A. Kaal, *Refundable Stake Does Not Expand Deterrent Capacity in Long-Lived Delegation: Collateral, Premia, and Pseudonymous Markets* (2026), 9 Conclusion, page 11

**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

**Verify.** sha256 of source PDF `130ee4e65fb79a9f3a96f6df22408b40c2de76e9ec8fc2bd1c68f0f6a7104333` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20Refundable%20Stake%20Does%20Not%20Expand%20Deterrent%20Capacity%20in%20Long-Lived%20Delegation%20Collateral%2C%20Premia%2C%20and%20Pseudonymous%20Markets.pdf

**Topics.** risk-and-incentives, economics, consensus-and-security, reputation

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