Vitalik Buterin Highlights Potential Of Insurance DAOs

According to BlockBeats, Ethereum co-founder Vitalik Buterin recently expressed his views on social media, stating that insurance DAOs are undervalued. He explained that a group of individuals concerned about similar risks can pool their funds together and agree to provide coverage for anyone who suffers from those risks. This symmetrical model ensures a more balanced distribution of benefits. Buterin noted that if necessary, DAOs can still hire professional claims judges, but their incentives would be fair and impartial since each participant is unaware of who the next beneficiary might be. He also mentioned that similar models have existed in the past and continue to exist in some places today.