Editing Executive governance (section)

=== Policing conclusion ===
The policing parameter determines the reward for policing, which motivates members to participate in the automated function or not. If it is set high enough, then we can expect everyone in the DAO to participate, because it will be profitable. If it is on the edge of profitability, some will drop off, which will give greater reward to those who remain.

Secondly, the higher the policing parameter is set, the more expensive it is to pay for a 51% attack arbitrage, which diminishes the arbitrage possibilities.

Thirdly, the higher the policing parameter, the more old REP remains in the DAO, even with REP with bounded lifetime, because policing creates new REP from old REP. Even though policing REP diminishes in time, some subsequently generated policing REP will persist for all time, even though individual REP tokens have a finite lifetime.

This leads to the problems identified with infinite life-time tokens, albeit in a diminished form. Older members have some advantage over younger members. However, in this respect it is more justified. Older members only have the minor advantage as long as they continue policing. If they ever turn off their machines, then all their REP eventually will be extinguished.