Reputation as Capital – How DAOs Upgrade Finance

36 Pages Posted: 25 Oct 2021

See all articles by Wulf A. Kaal

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Date Written: October 24, 2021


Decentralized Autonomous Organizations (DAOs) have the potential to upgrade finance. This paper evaluates the design of and system requirements for a decentralized cryptocurrency venture capital investment club that is operating as a DAO (DAOIC). The design of the proposed DAOIC enables investors to substitute capital commitments by way of reputation token staking on proposed portfolio companies. The proposed design has the potential to lower capital requirements and free up liquidity for decentralized smart contract coordinated investment vehicles.

Keywords: Decentralized Autonomous Organization, Venture Capital, Reputation, Non-Fungible Tokens, Fungible Tokens, Capital, Venture Funding, Finance, Token Models, Cryptocurrencies, Feedback Effects, Emerging Technology, Tokens, Blockchain, Distributed Ledger Technology

JEL Classification: K20, K23, K32, L43, L5, O31, O32

Suggested Citation

Kaal, Wulf A., Reputation as Capital – How DAOs Upgrade Finance (October 24, 2021). U of St. Thomas (Minnesota) Legal Studies Research Paper No. 22-06, Available at SSRN: or

Wulf A. Kaal (Contact Author)

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

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