# Reputation as capital `kaal:entity:reputation-as-capital` **Status.** derived This node is assembled mechanically from the 9 claims that carry the concept tag `reputation-as-capital`. 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 2 works, 2021 to 2021. **2021** - [3949098-004](https://wulfkaal.github.io/claims/3949098-004) [definitional/asserted] -- Kaal stipulates the core proposition of reputation as capital: once meaningful decentralized reputation is established, reputation can be used to remove the need for a capital base and for capital requirements. > In essence, once meaningful decentralized reputation is established, reputation can be used to remove the need for capital base and/or capital requirements. Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098 - [3949098-007](https://wulfkaal.github.io/claims/3949098-007) [mechanism/argued] -- The more reputation replaces capital, the less capital must be allocated, tied and encumbered, which raises the ratio of unencumbered capital available to be newly deployed. > The more reputation replaces capital the less capital has to be allocated, tied, and encumbered. In turn, the ratio of capital becoming unencumbered through reputation increases the deployment of capital ratio, e.g. a higher proportion of unencumbered capital can be newly encumbered. Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098 - [3949098-026](https://wulfkaal.github.io/claims/3949098-026) [failure/argued] *(failure mode)* -- Misjudging the public commitment portion of a firm underwriting engagement would neutralize the liquidity the DAOIC previously gained through reputation staking. > Getting the public commitment part on a firm underwriting engagement wrong would neutralize the prior gained liquidity from RNFT staking. Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098 - [3949098-040](https://wulfkaal.github.io/claims/3949098-040) [mechanism/argued] -- Replacing capital with reputation increases liquidity because reputation takes over part of the role of capital and frees otherwise locked capital, letting decentralized investment vehicles deploy capital more effectively since reputation staking on deals requires no capital deployment. > When reputation takes over part of the role of capital it frees up otherwise locked capital that cannot fully be utilized. Decentralized investment vehicles are able to deploy capital more effectively because reputation staking on deals does not require the deployment of capital. Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098 - [3962614-002](https://wulfkaal.github.io/claims/3962614-002) [predictive/asserted] -- Decentralized reputation governance models in venture capital have the potential to upgrade the venture capital market. > This article shows that decentralized reputation governance models in venture capital have the potential to upgrade the venture capital market. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-022](https://wulfkaal.github.io/claims/3962614-022) [definitional/asserted] -- The novelty of reputation as capital lies in the decentralized and democratized capital allocation functionality enabled by the DAO design. > The novelty of "Reputation as Capital" lies in the decentralized and democratized capital allocation functionality enabled by the DAO design. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-028](https://wulfkaal.github.io/claims/3962614-028) [mechanism/argued] -- If reputation whales stake reputation on a project and the market commits the capital for that stake, the whales should still receive part of the ROI because it is their reputation that is at stake, and they are not required to commit capital or to support capital calls with liquidity. > If whales stake but the market commits for their stake with capital, whales should still have the right to receive (part of) the ROI because it is their reputation that is at stake. Whales are not required to commit capital and don't have to support capital calls with liquidity. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-029](https://wulfkaal.github.io/claims/3962614-029) [condition/argued] -- Reputation as venture capital must be distinguished from the capital replacement enabled in decentralized underwriting, because in venture capital reputation needs to fill the role of capital for each funded venture deal rather than only when a claim is filed. > reputation in venture capital needs to fill the role of capital for each funded venture deal. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 - [3962614-043](https://wulfkaal.github.io/claims/3962614-043) [predictive/argued] -- Reputation as capital has the potential to lower capital requirements for VC businesses significantly and to increase liquidity at unprecedented levels, because VCs can sell their fungible reputation tokens to the market as needed. > Reputation as capital has the potential to lower capital requirements for VC businesses significantly and increase liquidity at unprecedented levels because VCs fungible reputation tokens can be sold to the market as needed by. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 ## 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/reputation-as-capital.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.