# Governance mechanism `kaal:entity:governance-mechanism` **Status.** derived This node is assembled mechanically from the 2 claims that carry the concept tag `governance-mechanism`. 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 2 claims across 2 works, 2019 to 2024. **2019** - [3373393-018](https://wulfkaal.github.io/claims/3373393-018) [mechanism/argued] -- Blockchain provides an alternative governance mechanism that eliminates agency costs, meaning the principal's cost of supervising agents, by creating trust in the contractual relationship between principal and agent. > Blockchain technology provides an alternative governance mechanism that eliminates agency costs - the principal's cost of supervising agents - by creating trust in the contractual relationship between the principal and the agent. Wulf A. Kaal, Blockchain Solutions for Agency Problems in Corporate Governance (2019). SSRN: https://ssrn.com/abstract=3373393 **2024** - [4855607-021](https://wulfkaal.github.io/claims/4855607-021) [definitional/asserted] -- Validation pools evaluate contributions democratically on the basis of staked tokens, and the outcome of that evaluation governs the minting of new reputation tokens, so community consensus on AI decisions is what determines standing in the system. > Validation Pools allow for the democratic evaluation of contributions based on staked tokens, with outcomes influencing the minting of new REP tokens that reflect community consensus on AI-related decisions. Wulf A. Kaal, How AI Models are Optimized Through Web3 Governance (2024). SSRN: https://ssrn.com/abstract=4855607 ## 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/governance-mechanism.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.