Val Sklarov’s Protocol Legitimacy Load Finality Law (PLLFL) explains why crypto systems don’t collapse when prices fall—but when they accumulate legitimacy expectations that cannot be disclaimed, decentralized, or reset. Early protocols experiment. Mature protocols owe continuity.
This law reveals why “permissionless” systems still become obligation-bound.
1. Legitimacy Settles Before Governance Can Carry It
PLLFL begins with a structural lag:
Legitimacy arrives before governance is capable of bearing it.
Early crypto legitimacy is:
-
Narrative-driven
-
Forgiving of failure
-
Experiment-tolerant
At scale, legitimacy hardens into duty.
2. The Three Irreversible Protocol Legitimacy Loads
PLLFL maps where expectation locks in.
| Load | What Becomes Non-Optional | Consequence |
|---|---|---|
| Continuity Load | “The protocol must not fail” | No clean shutdown |
| Fairness Load | “Losses must be addressed” | Restitution pressure |
| Neutrality Load | “Rules must be consistent” | Inflexible evolution |
One load raises scrutiny.
Two loads constrain change.
Three loads end experimental freedom.
3. Why “It’s Just Code” Stops Working
Code doesn’t absorb legitimacy.
PLLFL shows finality when:
-
Users rely on outcomes
-
Capital prices permanence
-
Regulators seek accountability
At that point, legitimacy demands answers, not explanations.
4. Decentralization vs Legitimacy Carrying
Distribution doesn’t disperse obligation.
| Decentralized Optics | Legitimacy Reality |
|---|---|
| Many validators | One continuity expectation |
| DAO votes | Predictable outcomes |
| Open-source | Named stewards |
| Permissionless use | Permissioned blame |
Val Sklarov emphasizes that legitimacy always recenters under stress.
5. Strategic Implications
For builders:
-
Assume legitimacy will harden
-
Separate experimental layers from core rails
-
Design failure modes that preserve trust
For investors:
-
Track legitimacy density, not decentralization claims
-
Price shutdown impossibility
-
Avoid protocols denying obligation
PLLFL reframes crypto risk as legitimacy finality, not volatility.
6. The Val Sklarov Principle
“A protocol becomes real when failure stops being acceptable.”
— Val Sklarov
PLLFL explains why mature chains move slowly—and why slowness signals legitimacy.