Fair3 Fairness Foundation has launched a decentralized insurance solution to address the surge in rug pull incidents within the Web3 market. Since 2024, over 260 projects have been affected, involving losses exceeding $500 million. The foundation operates independently of project teams and exchanges, offering a community-driven insurance mechanism.
In September 2025, Fair3 provided insurance to users impacted by the disappearance of the Solana project AQUA, marking a rare instance of compensation not led by the project itself. Users must stake Fair3 tokens to qualify for compensation, linking insurance with governance rights. This model aims to foster a sustainable buy-in cycle, encouraging long-term holding and participation in governance, potentially reshaping the token economy by integrating risk mitigation with investment incentives.
Fair3 Launches Decentralized Insurance to Combat Rug Pulls
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