entity · derived
Agency costs
Derived node: assembled mechanically from the claims carrying agency-costs. A roster, not an adjudicated definition.
Every claim under this term
- 3373393-001 : As a foundational technology, blockchain technology builds the infrastructure for decentralized networked governance, which over time creates an environment in which the internal and external monitori
- 3373393-002 : Blockchain technology produces a substantial increase in the efficiency of the agency relationship and lowers agency costs by orders of magnitude.
- 3373393-009 : The interests of manager agents and shareholder principals are never fully aligned despite best efforts at monitoring and bonding, so agency losses in the form of residual loss inevitably arise.
- 3373393-010 : Residual loss arises because the cost of enforcing suboptimal contracts between principals and agents always exceeds the benefits of performing the contractual obligations.
- 3373393-011 : Agency costs are the sum of monitoring costs, bonding costs, and residual loss, and in the corporate context they can be seen as the lost share value resulting from diverging interests between shareho
- 3373393-017 : Supervisory tasks traditionally performed by principals to control their agents can be delegated to decentralized computer networks that are reliable, secure, immutable, and independent of fallible hu
- 3373393-018 : Blockchain provides an alternative governance mechanism that eliminates agency costs, meaning the principal's cost of supervising agents, by creating trust in the contractual relationship between prin
- 3373393-021 : Because governance guarantees are embedded in code, there is no need in the blockchain infrastructure for the principal to institute oversight and monitoring, and the associated agency costs disappear
- 3373393-024 : Cryptographic hashes increase blockchain security and remove the trust barriers in agency relationships that otherwise require monitoring of agents and generate agency costs.
- 3373393-025 : Smart contracts enabled by blockchain technology allow comprehensive, near error free, and zero transaction and agency cost coordination of agency relationships.
- 3373393-040 : The basis of coded blockchain guarantees will itself evolve and require protocol upgrades, and without evolutionary governance upgrades the cost reduction achieved for the agency relationship cannot b
- 3411110-007 : Because direct ownership on a blockchain removes the need for the Depository Trust Corporation to hold the certificate and for a broker to record beneficial ownership, agency costs can be cut and owne
- 3411110-011 : Blockchain removes the class of costs generated by human error in record keeping, because it eliminates the possibility that transactions are misreported in ways that cause irreparable harm.
- 3411897-009 : The first DAO removed, in essence, all of the core control mechanisms that principals typically employ in agency relationships, having no directors, no managers, and no employees.
- 3411897-017 : Because governance guarantees are embedded in blockchain code, there is no need for a principal to institute oversight and monitoring, which eliminates the associated agency costs.
- 3652481-004 : A DAO realigns the otherwise disparate interests of principals and agents because all participants in the DAO share the same goal, which reduces behavior contrary to the interests of the organization.
- 3782201-008 : Blockchain based guarantees remove agency costs because principals become less essential for monitoring agents, which addresses the inherent agency problems in modern finance and corporate governance.
- 3808867-035 : Blockchain based guarantees remove agency costs because principals are less required to institute oversight and monitoring of agents, which addresses inherent agency problems in modern finance and cor
- 3949098-021 : Traditional underwriting also fails at the agent level, because individual agents within an underwriter may sacrifice the underwriter's overall reputation for personal gain, for example by putting out
- 3962614-010 : Significant information asymmetries in venture capital can lead portfolio company managers to engage in opportunistic behavior after an investment is made.
- 3981021-012 : DAOs are truly global borderless entities that coordinate agency relationships and limit liabilities via smart contracts, which is what positions them to address the identified flaws in the charitable