Shouldn’t smart contracts with staking also allow you to more readily enter contracts where payoffs are unknown? (eg you’re not sure if investing in a person or decision will result in the payoffs you want—there’s rather a distribution/ambiguity of outcomes). You mention rebalancing—this is where formalized smart contracts allow you to rebalance contracts based on another element of risk if you notice that you’ve staked too much on options that are volatile in response to investments that have too much time-correlated X1 in them?
You might even be unsure as to what your value function is (many people are!) but still have some aesthetic discernment/taste that allows you to make contracts in those areas where you are discerning
Shouldn’t smart contracts with staking also allow you to more readily enter contracts where payoffs are unknown? (eg you’re not sure if investing in a person or decision will result in the payoffs you want—there’s rather a distribution/ambiguity of outcomes). You mention rebalancing—this is where formalized smart contracts allow you to rebalance contracts based on another element of risk if you notice that you’ve staked too much on options that are volatile in response to investments that have too much time-correlated X1 in them?
You might even be unsure as to what your value function is (many people are!) but still have some aesthetic discernment/taste that allows you to make contracts in those areas where you are discerning