💸 Where do payouts come from?

Payout money comes primarily from two sources

• Taxes collected on trading the $DGNS token (1% of total volume traded)

• Premiums collected from policyholders (biweekly)

Unlike other insurance platforms that put the protocol users at risk whenever a policyholder comes to claim their payout, DegenInsure is delta-neutral in the sense that everyone contributes (in the form of taxes) to filling up the payout pool. Policyholders themselves pay a small portion of their payouts in the form of premiums.

This model gets even better when you realize that non-community members can contribute to the payout pool by trading the $DGNS token and getting taxed.