Reputation Over Regulation

> 2021-10-29

Regulations on business interactions between entities can be arbitrary and typically come from a highly centralized source. Market participants must either lobby for changes (which ends up being dominated by larger financial players) or submit to regulation (which all ultimately have to anyway).

Finding ways to prioritize reputation markets, wherever feasible, may be a better alternative. Members of the given market would build a reputation through participation and staking value to have “skin in the game” and increase the cost to potential manipulators [1].

I’m not laying out specific implementations, but anything that is market-member centered that rewards positive participation would be a step in the right direction.

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

~ Warren Buffett ~

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