Creating a insurance protocol backed by value token

There will be huge demand for insurance token, so creating a decentralised market place will be an important thing.

I have an idea and a tokenomics for this proposal. Just wanted share here and community can discuss to take it further. Because, A Good tokenomic is the backbone of sucessful project.

I will breakdown this tokenomic in simple idea and how leverage token can be related to the insurance. And is relatively easier to code and integrate in value protocol.

I am taking 1 month time frame, easier to relate if you relate it with option trading. So, if some one wants a cover for 1 month period, basically we can create a leverged position from 10x-100x backed by Value token which can be locked in value protocol. Imagin it in this way, a trader see an oportunity, he bets that a project is going through an audit and team is competent, so he thinks that protocol will be fine for next 1 month.

He buys 10 x leveraged token of X protocol in hopes that amount used to take the cover will be recieve by him after 1 month period if nothing happen in that protocol and if a hack happens then the person who bought 10 x - 100x token, that money will be used to compensate the hacked project.

It is relatively simple idea, however, only problem with this is that how to decide if the claim is legit. So, in initial development phase, it is a good idea to keep it a semidecentralised system and in this even we can vote in decentralized way to decide if the project should be compensated or any other method to relese the fund. This approach will increase the importance of value protocol.

Warm regards
Danish Haider