Insurance Pool (SAFU)

JinDAO has introduced a proprietary insurance pool which will set aside 5% of platform revenue to protect users' interests in the following ways. The responsibility of selecting the assets or bonds that should be included in the pool is given to $JIN holders who can exercise their power through voting.

1. To safeguard against governance attacks, JinDAO is planning to introduce Governance Attack Insurance. As DAOs are vulnerable to such attacks where a malicious entity gains control over the decision-making process, this insurance pool can help protect the organization and its members from the financial aftermath. In the event of a governance attack, the pool will be utilized to compensate affected members and aid the DAO in recovering from the attack.

2. To protect users from smart contract vulnerabilities, hacking incidents, or other security risks. If a security breach occurs, the affected users can be compensated from the pooled funds.

In the event of a security breach, the insurance pool can compensate affected users from the insurance funds. This measure is designed to provide additional protection to users and mitigate potential financial losses.