Pains

Slowing Pains aims to establish a pioneering insurance and reinsurance ecosystem on the Cardano blockchain, targeting the prevalent financial risks within the crypto community. The initiative addresses the urgent need for financial protection against scams, wallet drains, rug pulls, and other malicious activities that have significantly impacted Cardano users. The project leverages a mutual insurance pool where NFT and token holders collectively share risks and resources, providing a sustainable model for compensating victims of financial losses.

The insurance product, specifically designed for holders of Pain NFTs, offers comprehensive coverage against all risks faced within the Cardano ecosystem, subject to certain exclusions. The project will also introduce retroactive coverage for past losses, incentivizing users to maintain active and secure wallets. The policy includes different tiers based on the rarity of the Pain NFTs, with higher rarities providing greater coverage limits.

Key components of the ecosystem include:

Insurance Pool: A collective fund supported by premium contributions from NFT and token holders, ensuring sufficient resources for claim payouts.
Awareness and Cyber Hygiene: Educational campaigns and resources aimed at increasing user awareness about crypto scams and best security practices.

Emergency Response Team (ERT): A dedicated 24/7 support team to assist users in real-time during security incidents, helping to mitigate losses swiftly.

The project will initially conduct a pilot study to identify potential insurable losses, test claims processing capabilities, and fine-tune insurance pricing. The ultimate goal is to create a robust insurance product that offers financial security to Cardano users, fostering a more resilient and trustworthy blockchain ecosystem.