kaal:position:2026-07-31-6172
On DeFi and On-Chain CeFi: How (Not) to Regulate Decentralized Finance presents the following source proposition: Distinguishing between endogenous and inherited centralization, the importance of decentralization assessments for regulators is demonstrated. This proposition is pertinent to Kaal's source-bound claim that DeFi is more efficient than existing financial intermediation including FinTech, and that superior efficiency traces to its extensive reliance on code and automation, which removes large parts of the human element and the errors and inefficiencies that come with it. The proposed response is an extension: the relationship should remain limited to the retrieved source proposition and the mapped Kaal claim unless fuller source review supports a broader conclusion.
defieconomicsdecentralizationhistorical-responsescholarly-literatureopenalex