A DAO governance insurance pool could mitigate losses from flawed decisions, enhancing community resilience. It would act as a safety net, covering financial or operational setbacks caused by governance errors. Funds could be pooled from transaction fees, member contributions, or protocol revenue, allocated via smart contracts. This encourages risk-taking in innovation while protecting stakeholders. However, it risks moral hazard—members might make reckless decisions, expecting coverage. Clear rules, transparent claims processes, and strict eligibility criteria are essential to prevent abuse. Such a pool could boost trust and participation but requires careful design to balance incentives and accountability. DAOs like MakerDAO have explored similar mechanisms, showing feasibility. Implementation depends on the DAO’s goals, scale, and risk tolerance.