Shefi Ben-Hutta
Editor at Coverager
Dynamis Peerback

Dynamis Creator Works on New Initiative Peerback

 

Blockchain project Dynamis was created in March 2015 by Joshua Davis and Mary Davies with the vision of building a P2P supplemental unemployment insurance protocol that uses policyholders’ social capital to replace underwriters. Further, Dynamis explained that true P2P insurance implies that new polices are underwritten and new claims are evaluated by current policyholders via a system with new governance mechanisms that take advantage of blockchain. It planned to test this mechanism in the first quarter of 2016.

 

 

That was then. This is now.

 

 

According to his LinkedIn profile, Joshua Davis is currently working on a new initiative called Peerback; another P2P smart contract platform – this time for crowdfunding. “Peerback is a new type of hybrid payment platform which combines the convenience of fiat payments for policyholders with the strong guarantees of cryptocurrency multi-signature escrows for insurers. The goal of Peerback is to improve the customer experience of crowdfunding backers who have been disappointed in the past when the social contract between project creators and their supporters was broken.” Look:

 

 

Here’s how it can work: let’s say a crowdfunding pledge is currently at $50, then the premium for purchasing a refund is 15% or $7.50. Most premium pricing will likely fall within the range of 12% to 25% the cost of a standard pledge. Peerback goes on to explain that since consumers pay as much as 35% for warranties through Squaretrade, an average of 15% premium is a reasonable price to pay for this kind of service.

 

Bottom Line: this isn’t technically insurance it’s a refund and refunds are regulated differently.

 

PS. To end on a futuristic note: