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 "@id": "https://wulfkaal.github.io/entities/closed-loop",
 "identifier": "kaal:entity:closed-loop",
 "name": "Closed loop",
 "termCode": "closed-loop",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3125822-023",
   "identifier": "kaal:claim:3125822-023",
   "text": "The platform's feedback loop is closed in the sense that there are no rent seeking owners: the system is entirely supported by its users and the users reap the entire profit.",
   "abstract": "Therefore the feedback loop of the platform is closed, in the sense that there are no rent-seeking6 owners: The system is entirely supported by users, and the users reap the entire profit.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vlad Andrei, Blockchain Infrastructure for Measuring Domain Specific Reputation in Autonomous Decentralized and A (2018). SSRN: https://ssrn.com/abstract=3125822",
   "datePublished": "2018",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "all fees are disbursed to expert users",
    "no outside owner holds a claim on fees"
   ],
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   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5454054-022",
   "identifier": "kaal:claim:5454054-022",
   "text": "The absence of fiat par-redemption combined with limited acceptance inside merchant ecosystems makes LER rewards closed-loop utilities, which is what removes their classification as electronic money tokens or securities.",
   "abstract": "Third, the absence of fiat par-redemption and limited acceptance within merchant ecosystems positions LER voucher loyalty rewards as closed-loop utilities. This removes their classification as electronic money tokens (EMTs) or securities, which, in turn, simplifys compliance.",
   "citation": "Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054",
   "datePublished": "2025",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "no redemption at par in fiat",
    "acceptance confined to qualifying merchants"
   ],
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5454054-024",
   "identifier": "kaal:claim:5454054-024",
   "text": "Because LER vouchers are closed-loop and non-convertible, they reduce the risk of triggering FinCEN money services business registration and Bank Secrecy Act obligations that attach to convertible or transmissible digital value.",
   "abstract": "While convertible or transmissible digital value can trigger FinCEN MSB registration and BSA obligations, LER as closed-loop, non-convertible voucher rewards reduce that risk.",
   "citation": "Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054",
   "datePublished": "2025",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "United States",
    "vouchers not convertible or transmissible"
   ],
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5454054-025",
   "identifier": "kaal:claim:5454054-025",
   "text": "In the EU, MiCA exemptions for non-transferable utility tokens spare LER airdrops from white paper and issuer authorization requirements, but only so long as the rewards remain non-redeemable for fiat and confined to closed-loop merchant ecosystems.",
   "abstract": "In the EU, MiCA's exemptions for non-transferable utility tokens ensure that LER voucher rewards, distributed as airdrops, avoid white paper and issuer authorization requirements, as long as LER remain non-redeemable for fiat and confined to closed-loop merchant ecosystems.",
   "citation": "Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054",
   "datePublished": "2025",
   "claim_type": "condition",
   "confidence": "argued",
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    "European Union",
    "rewards non-redeemable for fiat",
    "acceptance confined to closed-loop merchant networks"
   ],
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   "@id": "https://wulfkaal.github.io/claims/5454054-030",
   "identifier": "kaal:claim:5454054-030",
   "text": "In the UK, e-money and payment services obligations attach if voucher rewards are fiat-redeemable or open-loop; otherwise LER should fall outside the Electronic Money Regulations 2011 and the Payment Services Regulations 2017 under limited-network concepts.",
   "abstract": "However, in the Uk, e-money and payments can arise if voucher rewards are fiat-redeemable or open-loop. Otherwise, LER are likely to avoid Electronic Money Regulations 2011 and Payment Services Regulations 2017 under limited-network concepts.",
   "citation": "Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054",
   "datePublished": "2025",
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   "@id": "https://wulfkaal.github.io/claims/5583610-023",
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   "text": "MiCA exempts non-transferable utility tokens like LER vouchers from white paper and issuer authorization requirements, but only while they lack investment characteristics and stay inside a closed-loop ecosystem.",
   "abstract": "MiCA exempts non-transferable utility tokens, such as LER's voucher rewards, from white paper and issuer authorization requirements, as long as they lack investment characteristics and are confined to closed-loop ecosystems.",
   "citation": "Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610",
   "datePublished": "2025",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
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    "token remains non-transferable and closed-loop",
    "no investment characteristics"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/6655138-016",
   "identifier": "kaal:claim:6655138-016",
   "text": "The HDCA settlement loop is closed in the topological sense: every job exits as resolved-validated or resolved-rejected and the system returns to a structurally identical state with only reputation scalars updated, so the set of possible actions never changes.",
   "abstract": "This is its central distinguishing feature relative to the HDCA settlement loop, which is closed in the topological sense: every job that enters the HDCA loop exits as either resolved-validated or resolved-rejected, and the system returns to a state structurally identical to where it began",
   "citation": "Wulf A. Kaal, Possibility Loops An Operational Architecture for Computative Economics in Agent Coordination Systems (2026). SSRN: https://ssrn.com/abstract=6655138",
   "datePublished": "2026",
   "claim_type": "mechanism",
   "confidence": "argued",
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 "description": "7 claims in the published works of Wulf A. Kaal carry the concept tag 'closed-loop'. Derived node: a roster, not an adjudicated definition."
}