# Feedback loop

`kaal:entity:feedback-loop`

**Status.** derived

This node is assembled mechanically from the 5 claims that carry the concept tag `feedback-loop`. 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

5 claims across 5 works, 2016 to 2025.

**2016**

- [2715083-029](https://wulfkaal.github.io/claims/2715083-029) [mechanism/argued] -- Merging the regulatory requirements of mutual funds with the formerly distinct rules for hedge funds creates incentives for private investment managers to launch retail alternative funds, which raises supply, then demand, and so feeds back into further confluence.
  > Merging the regulatory requirements applicable to mutual funds with the formerly more distinct rules applicable to hedge funds creates incentives for private investment managers to set up retail alternative funds.
  Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083
- [2740477-032](https://wulfkaal.github.io/claims/2740477-032) [failure/argued] *(failure mode)* -- The existing framework for optimal rules is self reinforcing: it perpetuates rulemaking processes that produce more optimal rules requiring costly revision, updating, and revocation, so suboptimal rules and suboptimal processes reproduce each other.
  > The existing regulatory framework for optimal rules reinforces rulemaking processes that perpetuate optimal rules, necessitating costly rule revision, updating, and revocation.
  Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477

**2021**

- [3782192-022](https://wulfkaal.github.io/claims/3782192-022) [failure/argued] *(failure mode)* -- Even where corruption is avoided, rigidity still leads centralized organizations to catastrophic ends, because failures push members to cling more faithfully to the rules that saved them in the past, making the system still more rigid and brittle.
  > Even if corruption can be avoided in the beginning, the rigidity still leads centralized organizations to cata- strophic ends, as failures naturally push members to cling ever more faithfully to the rules that have saved them in the past, making the system even more rigid and brit- tle.
  Craig Calcaterra, Wulf A. Kaal, Introduction to Decentralization (2021). SSRN: https://ssrn.com/abstract=3782192
- [3808867-029](https://wulfkaal.github.io/claims/3808867-029) [mechanism/asserted] -- A feedback loop exists between decentralized protection of the human factor in algorithmic systems and the proliferation of both algorithmic automation and decentralized solutions.
  > A feedback loop exists between decentralized protection of the human factor in algorithmic systems and the proliferation of both algorithmic automation and decentralized solutions.
  Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867

**2025**

- [5887242-015](https://wulfkaal.github.io/claims/5887242-015) [mechanism/argued] -- Internal and external layers reinforce each other: a more robust and meritocratic internal reputation system increases the legitimacy the Codex commands before national courts, and broader jurisdictional acceptance in turn strengthens the indirect economic incentives for high-quality contributions.
  > The more robust and meritocratic the internal reputation system becomes, the greater legitimacy the Codex commands before national courts. Similarly, the broader jurisdictional acceptance the Codex achieves, the stronger the indirect economic incentives for high-quality contributions.
  Wulf A. Kaal, The UDLC DAO Operationalizing a Continuously Evolving Universal Digital Law Codex Through Weighted (2025). SSRN: https://ssrn.com/abstract=5887242

## 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/feedback-loop.md | sha256sum

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