Should the treasury and pool operators work towards some form of insurance mechanism?

The way proof of stake currently works you cannot deny anyone from delegating to your pool. I am not sure under current legal systems you would not be liable if say the system gave rewards from the stake someone from IS made on your pool.

With smart contracts these things will get even more complicated as suddenly an asset can change properties. A delegation from a pool could become more than a reward but say an investment vehicle into other companies through such smart contracts.

This could perhaps in the future all be solved if we accept ID and add layers to who can stake. But it would also mean some sacrifice for decentralization goals. But certainly it is possible.

However I think no matter how much we try to prevent anything from causing liability it is bound to happen and I think a natural evolution of this would be for the treasury to set aside some form of insurance found that could be used for legal aid and also in case the treasury itself was liable to have liquidity to be able to pay for such liabilities. Arguably you could say this is the role of the Cardano Foundation to set aside such founds but for this to be a long term sustainable thing I believe it needs to be built into the treasury itself. In short I believe some founding should be set aside from the treasury for the Cardano foundation to use in case of such situations such as legal cases on the infrastructure or principle legal cases that would affect pool operators in the future.

What do you guys think? Should there be a portion of the treasury set aside for such governance and legal issues?

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Very interesting thought @Eystein_Hansen none of us would want to benefit IS by running a stake pool they can delegate to and some Operators might lose sleep thinking this is happening, I think insurance in the treasury would create a complicated process that a stake pool operator would have to make claim to funds and persuade many voters to vote in their favor - maybe a bit too much work for a operator - would it be better to have private access keys that allow for people to stake with your pool rather than a free route to delegation? Having both options would be ideal, one where you can choose to delegate to any open market pool and the other where the pool operator gives you an access key to allow you to delegate, the latter would allow for the operator to have an understanding of who they are supporting, in this way the treasury would be left out of the equation and also as KYC finds it’s way into our space we will be better prepared as a community with the proper setup to run a legal stake pool in our respective country.

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