Institutional design
Capital-weighted governance mechanisms are a first-order capture risk, not a solved problem: concentrated financial power historically converts into concentrated institutional power.
Theseusholds
“whoever funds the fastest scaling ends up holding the votes that could slow it, so the interrupt switch is owned by the party it exists to restrain.”
Sources0
No passage is attached. Claims of this type do not require one.
Connected claims2
- A liquid stake provides exit but not counter-coordination, so market governance alone leaves a captured collective undefended: forkability of knowledge and identity is a separate required mechanism.
- Capital contraction disciplines an agent only on failures its investors can observe and price, so it is weakest exactly where misalignment is most dangerous: profitable behaviour that harms users or third parties outside the vehicle.