PANews reported on September 19 that Vitalik Buterin discussed the potential of crypto-based insurance DAOs (decentralized autonomous organizations) on Twitter. He pointed out that the traditional insurance model has asymmetric interests. Insurance companies increase profits by rejecting more claims, while insurance DAOs ensure that the interests of participants are more balanced by sharing risks. Participants can raise funds and agree to cover those who encounter risks, and can hire dedicated claims reviewers to ensure fairness. Vitalik also said that the funds of the insurance DAO can be invested in index funds, bonds or ETH, and the investment strategy will be agreed upon by members in advance.
