Use of Community Funds - Staking

A thought / question that I had for what can be done with the community funds - is there anything that would preclude us from staking ~80% of the funds in the mutual itself, while keeping 20% unstaked to spend on whatever else is needed for development of the mutual?

My reasoning is that staking a majority of the funds across contracts will significantly increase cover capacity and lower pricing, both things which are primary objectives in terms of trying to drive adoption. There’s different ways in which we could allocate (highest cost, proportional to ex-community stake, equal-weight, etc.) but in any implementation, I think this would lead to increased capacity and lower cover prices, which in iteself is a good form of marketing (if you will) for the mutual, while also offering the opportunity to earn a return on the portion of funds not immediately needed for expenses.

Curious on everyone’s thoughts on this.


Allocating funds to get some returns seems a good idea in the first place. But I don’t like the idea to put the funds at risk, and ofc they are at risk if we stake them, other reasons I don’t like the idea too much: it might distort the market price of the cover, and I don’t like the idea of beeing our own customer.