Incentive Mechanism Design for Distributed Autonomous Organizations Based on the Mutual Insurance Scenario

Figure 2

Mutual insurance application scenario based on a distributed autonomous organization. Note: in the blockchain economy, agreed-upon transactions would be enforced autonomously, following rules defined by smart contracts. The blockchain economy would manifest as a new form of organizational design, DAOs, which are organizations with governance rules specified in the blockchain. Member autonomy, one-person-one-vote rules, and the risk- and benefit-sharing principles of mutual insurance comprise an organizational form perfectly compatible with blockchain technology.