Vitalik: Insurance DAO Model Underestimated, Symmetric Model Brings More Fair Incentives
Article is form Jinse
September 19, 2024
This article is translated by ChatGPT Show original
According to Golden Finance, Ethereum co-founder Vitalik Buterin posted on social media that he believes insurance DAOs are undervalued. He argues that a group of people who are concerned about similar risks can pool their funds together and agree to provide protection for anyone who suffers from that risk. This symmetrical model ensures that there is less imbalance in the benefits.
Even if needed, the DAO can still hire professional claims judges, but their incentive is to be fair and impartial, since each participant doesn't know if they will be the next beneficiary.
Similar models have existed in the past and still exist in some places even today.
Source
1. Disclaimer: The views expressed are solely those of the author and do not reflect the stance of Gen3. They are not intended as investment advice.
2. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as investment or other advice.