# Cost reduction `kaal:entity:cost-reduction` **Status.** derived This node is assembled mechanically from the 8 claims that carry the concept tag `cost-reduction`. 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 8 claims across 6 works, 2017 to 2024. **2017** - [2959730-033](https://wulfkaal.github.io/claims/2959730-033) [mechanism/evidenced] -- LendingRobot can charge only a 1% management fee and a maximum 0.59% annual fund expense fee because its blockchain secured business model removes the investment adviser, overhead costs, and the legal fees associated with each investor agreement. > Because LendingRobots' business model removes the investment adviser, overhead costs, and legal fees associated with each investor agreement, LendingRobot is able to charge a mere 1% management fee and a maximum 0.59% fund expense fee per year. Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730 - [2959730-034](https://wulfkaal.github.io/claims/2959730-034) [mechanism/argued] -- Increased transparency from blockchain recordkeeping lowers fees by allowing a fund to expend fewer resources on auditing itself. > Other factors that help keep the fee low include the increased transparency that allows LendingRobot to expense fewer resources on auditing the fund. Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730 - [2998033-031](https://wulfkaal.github.io/claims/2998033-031) [mechanism/evidenced] -- LendingRobot can charge only a one percent management fee and a maximum 0.59 percent fund expense fee because its business model removes the investment adviser, overhead costs, and the legal fees attached to each individual investor agreement. > Because LendingRobots' business model removes the investment adviser, overhead costs, and legal fees associated with each investor agreement, LendingRobot is able to charge a mere 1% management fee and a maximum 0.59% fund expense fee per year. Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033 **2018** - [3227967-020](https://wulfkaal.github.io/claims/3227967-020) [mechanism/argued] -- Blockchain replaces intermediaries, bureaucracy and old fashioned procedures with the four Cs of code, connectivity, crowd and collaboration, which increases openness and speed while significantly reducing costs. > Intermediaries, bureaucracy and old-fashioned procedures are replaced by the 4 Cs: code, connectivity, crowd, and collaboration. 55 The technology increases openness and speed, while at the same time significantly reducing costs. Mark Fenwick, Wulf A. Kaal, Erik P.M. Vermeulen, Legal Education in a Digital Age Why 'Coding for Lawyers' Matters (2018). SSRN: https://ssrn.com/abstract=3227967 **2019** - [3409548-035](https://wulfkaal.github.io/claims/3409548-035) [mechanism/argued] -- Recording every fund transaction together with its associated documentation on a blockchain cuts the significant costs of human oversight in recording, organizing and maintaining investment fund data and records. > blockchain technology reduces the otherwise significant costs associated with human oversight in recording, organizing, and maintaining investment fund data and records. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3411110-003](https://wulfkaal.github.io/claims/3411110-003) [mechanism/argued] -- Blockchain reduces counterparty credit risk through a specific mechanism: a single shared ledger compresses the settlement cycle so that cash or securities are verifiably in the account within seconds of the trade, leaving almost no window for counterparty default. > credit risk is reduced because cash (if selling) or the securities (if purchasing) are in the account for verification shortly after the trade (which could be seconds, if not fractions of a second), because the settlement cycle is substantially reduced. Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110 - [3411110-011](https://wulfkaal.github.io/claims/3411110-011) [mechanism/asserted] -- 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. > Blockchain technology allows corporations to eliminate costs associated with human errors in record keeping. Blockchain eliminates the possibility of transactions being misreported due to human error that can cause irreparable harm. Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110 **2024** - [4755632-038](https://wulfkaal.github.io/claims/4755632-038) [mechanism/argued] -- Reputation based market dynamics lower the cost of duplication relative to centralized micro task work: where a reliable high reputation worker completes the task, duplication can fall from fifteen to five or fewer in a decentralized setup, which is what enables scaling of micro task work. > If a reliable and high reputation score worker completes the tasks, the duplication may be brought from 15 to 5 or less in the Wulf A. Kaal, AI Learning - Decentralized Governance to Optimize Human Output Datasets for AI Learning (2024). SSRN: https://ssrn.com/abstract=4755632 ## 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/cost-reduction.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.