Vitalik: The insurance DAO model is underrated, and the symmetric model can bring fairer incentives

ChainCatcher message, Ethereum co-founder Vitalik Buterin stated on social media that, in my opinion, insurance DAOs are underrated. A group of N people concerned about similar risks pools their funds together and agrees to provide coverage for anyone who suffers from those risks. The symmetric model ensures that the imbalance of interests is minimized.

If needed, the DAO can still hire professional claims judges, but their incentives are fair and just, as no participant knows whether the next beneficiary will be themselves.

Similar models have existed in the past and still exist in some places today.