# Fees `kaal:entity:fees` **Status.** derived This node is assembled mechanically from the 9 claims that carry the concept tag `fees`. 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 9 claims across 5 works, 2016 to 2021. **2016** - [2715083-018](https://wulfkaal.github.io/claims/2715083-018) [mechanism/argued] -- Alternative funds gave retail investors access to hedge fund strategies and higher returns than traditional mutual funds while charging mutual fund fees, and that combination is what increased retail demand. > Alternative funds offered retail investors access to hedge fund strategies and higher returns than mutual funds while paying mutual fund fees, thus increasing demand by retail investors. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2811729-009](https://wulfkaal.github.io/claims/2811729-009) [empirical/evidenced] *(failure mode)* -- Average unconstrained mutual fund performance over the three years preceding the study was lower than the return on the ten-year Treasury, and poor performance was often accompanied by high fees and increased credit risk. > On average, UMF performance has disappointed over the last three years, with returns lower than the return on the ten-year Treasury.43 Often, poor UMF performance has been accompanied by high fees and increased credit risk. Wulf A. Kaal, Unconstrained Mutual Funds and Retail Investor Protection (2016). SSRN: https://ssrn.com/abstract=2811729 **2017** - [2959730-002](https://wulfkaal.github.io/claims/2959730-002) [empirical/evidenced] -- The majority of private fund advisers that deploy blockchain technology, artificial intelligence, and big data in their operations or strategy charge their investors lower fees, even though not all blockchain enabled funds charge per transaction fees. > While not all blockchain-enabled private investment funds charge per-transaction fees, the majority of private fund advisers that use blockchain technology, artificial intelligence, and big data in different aspects of their operations or strategy charge their investors lower fees. Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730 - [2959730-003](https://wulfkaal.github.io/claims/2959730-003) [empirical/evidenced] -- Using a hand coded dataset of 98 private investment fund advisers that use blockchain technology in their strategy or internal operations, the article shows that advisers using the new technology are able to charge overall lower fees. > Using a dataset of private investment fund advisers that utilize blockchain technology in their investment strategy or internal operations (N=[98]), this article shows that the fund advisers who use the new technology are able to charge overall lower fees. 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 - [2959730-035](https://wulfkaal.github.io/claims/2959730-035) [empirical/evidenced] -- A blockchain enabled fund delivers performance competitive with traditional funds: LendingRobot claims average performance of 6.86% to 9.66% depending on strategy, against an average 8.89% annualized return for a broad range of traditional hedge funds as of March 2017. > LendingRobot claims an average performance of from 6.86% to 9.66% depending on the investment strategy selected by the clients.68 As of March 2017 an analysis of a broad range of traditional hedge funds shows an average of 8.89% annualized return. Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730 **2021** - [3782210-015](https://wulfkaal.github.io/claims/3782210-015) [condition/argued] -- Reputation tokens are meaningful only if grounded in something real, so in a profit-seeking DAO all new reputation tokens must be minted in proportion to the fees the DAO earns. > Whenever a new reputation token is minted, to be meaningful it must be grounded in something real. In any DAO devoted to profit, the foundational object is money. So all reputation tokens need to be tied to the fees the DAO earns. Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210 - [3808867-034](https://wulfkaal.github.io/claims/3808867-034) [mechanism/argued] -- Because decentralized platforms can remove the consumer fees that are integral to their centralized competitors, they also remove downward pressure on platform worker compensation, since costs are less likely to increase and be passed on to workers and consumers. > Removing such centralized fees also allows for the removal of downward pressure on the platforms' worker compensation as costs are less likely to increase and be passed on to workers and consumers. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 - [3808867-037](https://wulfkaal.github.io/claims/3808867-037) [failure/argued] *(failure mode)* -- High intermediary fees in legacy payment systems make transacting economically viable only at higher transaction volumes, thereby creating barriers to entry that decentralized payment systems do not impose. > The fees make it only economically viable for higher volumes of transactions, creating barriers to entry in the process. Wulf A. Kaal, How Decentralized Systems Can Upgrade AI (2021). SSRN: https://ssrn.com/abstract=3808867 ## 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/fees.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.