# Instability

`kaal:entity:instability`

**Status.** derived

This node is assembled mechanically from the 5 claims that carry the concept tag `instability`. 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 4 works, 2014 to 2021.

**2014**

- [2389416-035](https://wulfkaal.github.io/claims/2389416-035) [empirical/evidenced] -- The difference-in-differences treatment effect is unstable over time: it loses significance in June and July 2012, then becomes significant again in August and September 2012 with negative coefficients and in October 2012 with a positive coefficient.
  > It loses significance in June and July, but it becomes significant again in August, September (with a negative coefficient) and October (with a positive coefficient).
  Wulf A. Kaal, Barbara Luppi, Sandra Paterlini, Did the Dodd-Frank Act Impact Hedge Fund Performance (2014). SSRN: https://ssrn.com/abstract=2389416

**2021**

- [3782193-001](https://wulfkaal.github.io/claims/3782193-001) [failure/argued] *(failure mode)* -- Because more powerful members of a hierarchy are better positioned to capture whatever power becomes available, power distribution in an entrenched hierarchy becomes exponential, leaving the majority with minimal power and wealth. That discontent of the majority is the first destabilizing force acting on a centralized organization.
  > As the hierarchy becomes more entrenched, this exponentially distributed power structure crushes those at the bottom, leaving minimal power and wealth for the vast majority of people. The discontent of the majority is the first destabilizing force of a centralized organization.
  Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021). SSRN: https://ssrn.com/abstract=3782193
- [3782193-040](https://wulfkaal.github.io/claims/3782193-040) [condition/argued] *(failure mode)* -- In designing governance for large global networks, protocol centralization is necessary in order to display objective fairness, yet that same protocol centralization leads to instability, which is the core design tension the chapter's historical cases are meant to resolve.
  > Protocol centralization is necessary to display objective fairness, but this leads to instability.
  Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021). SSRN: https://ssrn.com/abstract=3782193
- [3782198-025](https://wulfkaal.github.io/claims/3782198-025) [failure/argued] *(failure mode)* -- Bitcoin and Ethereum have no formal binding governance framework declaring how consensus protocols may be changed in the future, which the authors identify as a deep flaw that weakens the networks and will lead to instability.
  > In Bitcoin and Ethereum, there is no formal binding governance framework de- claring how the protocols for consensus might be changed in the future. This is a deep flaw which weakens these networks and will lead to instability.
  Craig Calcaterra, Wulf A. Kaal, Contemporary Decentralization (2021). SSRN: https://ssrn.com/abstract=3782198
- [3782203-004](https://wulfkaal.github.io/claims/3782203-004) [failure/asserted] *(failure mode)* -- Protocol centralization, meaning rigid and immediately enforced rules such as those executed by smart contracts, leads to instability unless it is implemented wisely.
  > However, protocol centralization leads to instability if it is not implemented wisely.
  Craig Calcaterra, Wulf A. Kaal, A Technical Perspective on Decentralization (2021). SSRN: https://ssrn.com/abstract=3782203

## 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/instability.md | sha256sum

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