CoinVoice recently learned that Ethereum co-founder Vitalik Buterin posted on social media that, in my opinion, insurance DAOs are underestimated. N people who are concerned about similar risks pool their funds and agree to provide protection for anyone who suffers from the risk. The symmetric model ensures that the imbalance of interests is smaller.
If necessary, the DAO can still hire professional claims judges, but their incentives are fair and just because no participant knows whether they will be the next beneficiary.
Similar patterns have existed in the past, and even exist in some places today. [Original link]
