According to TechFlow, Ethereum co-founder Vitalik Buterin recently expressed his opinion on social media that insurance DAOs (decentralized autonomous organizations) are seriously underestimated. Buterin explained that insurance DAOs allow multiple participants facing similar risks to jointly raise funds and agree to provide protection for any member who suffers from the risk.
He stressed that this symmetrical model ensures a balanced incentive mechanism. Buterin pointed out that the DAO can still hire professional claims adjudicators, but since each participant does not know whether they will be the beneficiary next time, the adjudicators have an incentive to remain fair. He also mentioned that similar models have existed in the past and still exist in some places today.
