# Proportionality

`kaal:entity:proportionality`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `proportionality`. 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

3 claims across 2 works, 2019 to 2025.

**2019**

- [3396542-036](https://wulfkaal.github.io/claims/3396542-036) [design/asserted] -- Assuming all agents are active underwriters, the DAO's rules can be designed so that the proportion of policies an agent writes in the long run is commensurate with that agent's proportion of token holdings.
  > In general, assuming all agents are active underwriters, the rules can be designed to ensure that the proportion of policies written by an agent in the long run is commensurate with the proportion of the agent's token holdings.
  Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542

**2025**

- [5583610-012](https://wulfkaal.github.io/claims/5583610-012) [condition/argued] -- LER survives Delaware scrutiny only if it is deployed non-discriminatorily and proportionately with the welfare of the whole shareholder body in view, responding to a genuine threat rather than entrenching management.
  > LER complies with Delaware law requirements if LER is deployed non-discriminatorily, proportionately, and with a focus on overall shareholder welfare. To accomplish this, LER must respond to genuine threats without entrenching management.
  Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610
- [5583610-013](https://wulfkaal.github.io/claims/5583610-013) [failure/argued] *(failure mode)* -- If LER rewards are set so generously that they effectively purchase shareholder votes, the program becomes disproportionate or coercive and courts will invalidate it.
  > If LERs are disproportionately or coercively implemented, such as for example overly generous voucher rewards that effectively buy stockholder votes, then LER would violate the applicable requirements and risk invalidation by courts.
  Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

## 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/proportionality.md | sha256sum

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