{
 "@context": "https://schema.org",
 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/secondary-market",
 "identifier": "kaal:entity:secondary-market",
 "name": "Secondary market",
 "termCode": "secondary-market",
 "inDefinedTermSet": {
  "@id": "https://wulfkaal.github.io/entities/index.json"
 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
 "canonicalForm": "https://wulfkaal.github.io/entities/secondary-market.md",
 "sha256": "6fed2e7baa98674cdd11919257ad49b1e7a42edea0daa637a6601a497bdfb6ea",
 "additionalProperty": [
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   "@type": "PropertyValue",
   "name": "status",
   "value": "derived"
  },
  {
   "@type": "PropertyValue",
   "name": "claim_count",
   "value": 4
  },
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   "value": 3
  },
  {
   "@type": "PropertyValue",
   "name": "year_span",
   "value": [
    "2021",
    "2025"
   ]
  },
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   "name": "non_current_claims",
   "value": 0
  }
 ],
 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3949098-013",
   "identifier": "kaal:claim:3949098-013",
   "text": "Exit by selling reputation tokens is more problematic for reputation than for other cryptocurrency tokens, because reputation is less fungible: a token's value is tied to the specific post in which the reputation was created and is subject to separate review.",
   "abstract": "This is more problematic for reputation than for most other cryptocurrency tokens, since reputation is less fungible because a token's value is tied to the post in which the reputation was created and subject to separate review. But in principle it could be algorithmically valued.",
   "citation": "Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098",
   "datePublished": "2021",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "a member wants to exit by selling reputation tokens at fair market value"
   ],
   "source_pdf_sha256": "04297905564a6092b2db7640561f58fd374d3114c79527357bad09d11b909819",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4685567-014",
   "identifier": "kaal:claim:4685567-014",
   "text": "Impact 1.0 impact markets fail on the demand side: they have more sellers than buyers, and many potential buyers would have funded those projects anyway, which removes the need for a secondary market and significantly reduces resale value.",
   "abstract": "Impact 1.0 markets typically have more sellers than buyers and many potential buyers would have done those 47 projects anyway thus removing the need for a secondary market. This imbalance of high supply and low demand significantly reduces the \"resale\" value",
   "citation": "Wulf A. Kaal, Impact Investing Innovation - From Impact 1.0 to 3.0 (2024). SSRN: https://ssrn.com/abstract=4685567",
   "datePublished": "2024",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "Impact 1.0 secondary markets for social impact credits"
   ],
   "source_pdf_sha256": "87fb1be89d2661967ed2b0b673fe26448ded3bc3119b122177a4fc13ae5c085c",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5454054-023",
   "identifier": "kaal:claim:5454054-023",
   "text": "LER can be engineered outside the Howey test by keeping reward units consumptive as discounts or credits, non-yielding, unmarketed for appreciation, and by disabling secondary trading.",
   "abstract": "LER could be engineered to fall outside of the Howey test. This is possible by avoiding a reasonable expectation of profits derived from the efforts of others. LER voucher loyalty reward units remain consumptive as discounts/credits, non-yielding, and not marketed for appreciation.",
   "citation": "Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054",
   "datePublished": "2025",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "United States securities law",
    "secondary trading disabled"
   ],
   "source_pdf_sha256": "9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5454054-028",
   "identifier": "kaal:claim:5454054-028",
   "text": "A favorable legal assessment of LER depends on four design features holding simultaneously: non-transferability, absence of a secondary market, absence of fiat redemption, and consumptive utility.",
   "abstract": "Most important for a favorable legal assessment is LER non-transferability, no secondary market, no fiat redemption, and consumptive utility.",
   "citation": "Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054",
   "datePublished": "2025",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "EU, UK, and U.S. jurisdictions"
   ],
   "source_pdf_sha256": "9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6",
   "status": "current"
  }
 ],
 "description": "4 claims in the published works of Wulf A. Kaal carry the concept tag 'secondary-market'. Derived node: a roster, not an adjudicated definition."
}