One of the key concerns for item owners is protection from damages and theft. To ensure that sufficient funds are readily available to assist item owners when such events occur, Flambu will have an Insurance Pool which may assist item owners with up to US$10,000 initially, subject to terms and conditions.
To ensure that the Insurance Pool is sustainable in perpetuity and also reflects the growth of the Flambu network, the Insurance Pool receives 20% of every rental fee revenue received by the Community Treasury. Since the Community Treasury receives 7.5-15% of the base price of every rental (15% without the CashBack, and 7.5% with maximum CashBack), the Insurance Pool will receive 1.5-3% of the base price of every booking.
Soon after the TGE, the Community Treasury will transfer 10,000,000 FLAM to the Insurance Pool. This amounts to 1% of the maximum FLAM supply, 4% of the Community Treasury's allocation, and 20% of the Community Treasury's allocation at the TGE.
As part of Flambu's asset management practices, the Flambu DAO's Insurance Pool team will:
Gradually convert the Insurance Pool's funds to stable tokens;
Stake part of the Insurance Pool's funds to yield-generating DeFi protocols to grow the pool while managing risk.
The Flambu DAO is committed to granting loans from the Community Treasury to the Insurance Pool, in case the Insurance Pool needs additional funds to assist lenders.