# Economic friction

`kaal:entity:economic-friction`

**Status.** derived

This node is assembled mechanically from the 4 claims that carry the concept tag `economic-friction`. 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

4 claims across 2 works, 2019 to 2021.

**2019**

- [3402701-025](https://wulfkaal.github.io/claims/3402701-025) [definitional/speculative] -- 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.
  > 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
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701
- [3402701-027](https://wulfkaal.github.io/claims/3402701-027) [design/argued] -- 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.
  > Holding taxes should account for the inefficiencies of the economy, instead of the inefficiencies of the maintenance of the currency
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

**2021**

- [3782201-016](https://wulfkaal.github.io/claims/3782201-016) [mechanism/argued] -- 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.
  > 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.
  Craig Calcaterra, Wulf A. Kaal, Future of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782201
- [3782201-018](https://wulfkaal.github.io/claims/3782201-018) [failure/argued] *(failure mode)* -- 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.
  > 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.
  Craig Calcaterra, Wulf A. Kaal, Future of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782201

## 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/economic-friction.md | sha256sum

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