# Capital replacement `kaal:entity:capital-replacement` **Status.** derived This node is assembled mechanically from the 5 claims that carry the concept tag `capital-replacement`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 5 claims across 1 works, 2021 to 2021. **2021** - [3962614-028](https://wulfkaal.github.io/claims/3962614-028) [mechanism/argued] -- If reputation whales stake reputation on a project and the market commits the capital for that stake, the whales should still receive part of the ROI because it is their reputation that is at stake, and they are not required to commit capital or to support capital calls with liquidity. > If whales stake but the market commits for their stake with capital, whales should still have the right to receive (part of) the ROI because it is their reputation that is at stake. Whales are not required to commit capital and don't have to support capital calls with liquidity. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-029](https://wulfkaal.github.io/claims/3962614-029) [condition/argued] -- Reputation as venture capital must be distinguished from the capital replacement enabled in decentralized underwriting, because in venture capital reputation needs to fill the role of capital for each funded venture deal rather than only when a claim is filed. > reputation in venture capital needs to fill the role of capital for each funded venture deal. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-040](https://wulfkaal.github.io/claims/3962614-040) [mechanism/argued] -- Over time the members of a DAO investment club do not need capital any longer, because the public market funds the deals and members get paid through the twenty percent public return on purchase that is minted into fungible reputation tokens. > Over time, the members of the DAOIC do not need capital any longer. All they need is the ability to stake RNFTs on newly proposed incoming deals. The public market funds the deals and the DAO members get paid via the 20% public ROP minting to fungible reputation token. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-041](https://wulfkaal.github.io/claims/3962614-041) [mechanism/argued] -- Removing capital as a necessity for deal participation creates a very high level of flexibility for DAO investment club members, allowing them to invest without ever being forced to invest, and making capital calls entirely unnecessary. > The removal of capital as a necessity for deal participation creates a very high level of flexibility for DAOIC members. It allows the DAOIC members to invest if they so choose but it does not force them to invest, under any conditions. Capital calls are entirely unnecessary. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-044](https://wulfkaal.github.io/claims/3962614-044) [predictive/speculative] -- The industry is still experimenting with different forms of DeFi capital replacement schemes, and it will take time to filter out those designs that have unanticipated side effects. > The industry is still experimenting with different forms of DeFi capital replacement schemes. It will take time to filter out those designs that have unanticipated side effects Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/capital-replacement.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.