{
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 "@id": "https://wulfkaal.github.io/entities/economic-friction",
 "identifier": "kaal:entity:economic-friction",
 "name": "Economic friction",
 "termCode": "economic-friction",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
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   "value": [
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3402701-025",
   "identifier": "kaal:claim:3402701-025",
   "text": "Defining the energy of money as the product of economic momentum and velocity gives a basis for discussing economic frictions and for distinguishing genuine from artificial network energy, which is what guards against hot money instability.",
   "abstract": "With clearly specified definitions of energy we can discuss \"frictions\" in an economy due to inefficiencies, and we can distinguish \"genuine\" versus \"artificial\" network energy to guard against the instability arising from hot money",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701",
   "datePublished": "2019",
   "claim_type": "definitional",
   "confidence": "speculative",
   "is_failure_mode": false,
   "scope_conditions": [
    "proposed research framework, analogy to kinetic theory of gases"
   ],
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3402701-027",
   "identifier": "kaal:claim:3402701-027",
   "text": "Holding taxes are the implicit result of inflation borne by coin holders, and they should be set to account for the inefficiencies of the economy rather than the inefficiencies of maintaining the currency.",
   "abstract": "Holding taxes should account for the inefficiencies of the economy, instead of the inefficiencies of the maintenance of the currency",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701",
   "datePublished": "2019",
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782201-016",
   "identifier": "kaal:claim:3782201-016",
   "text": "Middlemen such as police, lawyers, and insurance salesmen are the catalysts that exist to overcome the friction of economic corruption, and engineers who eliminate them mistake the catalyst for the friction.",
   "abstract": "Middlemen are the catalysts that exist to overcome the friction of economic cor- ruption. Police, lawyers, and insurance salesmen eliminate threats to business activity from different angles.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Future of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782201",
   "datePublished": "2021",
   "claim_type": "mechanism",
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  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782201-018",
   "identifier": "kaal:claim:3782201-018",
   "text": "Removing the middlemen who serve as business catalysts would kill the economy: liquidity would dry up because after a few people unfairly lose on business deals, no one will take the risk of initiating one.",
   "abstract": "Remove the middlemen business catalysts and the economy will soon die. Liquid- ity will dry up. A few people will unfairly lose on business deals, then no one will take the risk to initiate a business deal.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Future of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782201",
   "datePublished": "2021",
   "claim_type": "failure",
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   "is_failure_mode": true,
   "scope_conditions": [
    "where no automated substitute performs the catalyst function"
   ],
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  }
 ],
 "description": "4 claims in the published works of Wulf A. Kaal carry the concept tag 'economic-friction'. Derived node: a roster, not an adjudicated definition."
}