# Contracts

`kaal:entity:contracts`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `contracts`. 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

3 claims across 3 works, 2019 to 2021.

**2019**

- [3373393-010](https://wulfkaal.github.io/claims/3373393-010) [mechanism/asserted] *(failure mode)* -- Residual loss arises because the cost of enforcing suboptimal contracts between principals and agents always exceeds the benefits of performing the contractual obligations.
  > Residual loss arises because the cost of enforcing suboptimal contracts between principals and agents always exceed the benefits of performing the contractual obligations.
  Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393

**2021**

- [3782205-029](https://wulfkaal.github.io/claims/3782205-029) [mechanism/argued] -- Renegotiating contracts every time the currency's value changes is expensive and continually and randomly punishes at least one of the contracting parties.
  > Renegotiating contracts whenever the currency changes is expensive, and continually and randomly punishes at least one of the parties.
  Craig Calcaterra, Wulf A. Kaal, Eight Institutions for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782205
- [3782216-027](https://wulfkaal.github.io/claims/3782216-027) [condition/argued] -- A decentralized economy requires stable cryptocurrencies, because renegotiating contracts every time a currency's value changes is inefficient and continually punishes one of the parties.
  > Renegotiating contracts each time the value of a currency changes is inefficient, and continually punishes one of the parties. The economy should not be founded on gambling, so any future decentralized economy requires stable cryptocurrencies.
  Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216

## 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/contracts.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.