Allocation of 10% of Gas Fees for Health Insurance Claims

Proposals
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Title – Proposal: Allocation of 10% of Gas Fees for Health Insurance Claims

Abstract - This Arbitrum Improvement Proposal (AIP) seeks to allocate 10% of all transaction fees to a contract designed for health insurance claims. This proposal will increase user engagement and expand the blockchain’s real-world application.

Motivation - This proposal uses the Arbitrum blockchain technology to securely and transparently manage and distribute health insurance claim funds. It’s alarming that approximately 21.5% of the world’s population lacks access to any form of health insurance, and this is particularly concerning in Nigeria, where only 3.4% of citizens are insured. While the percentage of insured individuals is higher in India at 55%, it’s worth noting that both Nigeria and India have the highest percentage of crypto users globally, with 34.3% and 29.9% of their populations owning crypto, respectively.

(above examples are case studies)

Rationale - Abtritrum’s mission is to make Ethereum accessible to more people through a secure, scalable, and user-friendly platform. To enhance the benefits of this platform, we propose implementing an AIP that directs a portion of transaction fees towards a cause that directly impacts users’ lives. This will encourage engagement and align to create a fair, user-focused blockchain ecosystem.

Key Terms

  1. Healthcare provider: This includes hospitals, clinics, and pharmacies.

  2. Health insurance claim: This is a request made to a smart contract to pay a specific amount to a particular healthcare provider.

  3. Health insurance premium: A percentage (e.g., 10%) of a user’s transaction fee deducted and paid later as a claim.

  4. DAO: A decentralized autonomous organization responsible for adding or removing a Health Institution.

Key Considerations

  • Implementation must not require changes to the protocol

  • Insurance claims must be transparent and anonymous

  • Monthly claims should be between $5 - $1000 per user

  • A healthcare provider can only join or be removed through voting.

  • Funds must be paid to only approved Health Institutions

Specifications

This AIP will upgrade the existing ARB token at address 0x912ce59144191c1204e64559fe8253a0e49e6548. The upgrade will redirect 10% of all transaction fees to a designated multi-sig wallet.

Steps to Implement

  1. Development & Testing of the Health Insurance smart contract

  2. Selection of key holders to manage the Multi-sig account from the Arbitrum Foundation

  3. Development of a dApp to manage the whole system:

  4. Upgrade the ARB token contract to divert 10% of transaction fees to the upgradable insurance smart contract:

  5. Onboarding Health Institutions

  6. Test the new system in a testnet environment:

  7. Deploy to the Mainnet:

  8. Educate the community about the new feature and how to use it

Timeline:

Planning & Research

  • Estimated duration: 1 month

Development Stage

  • Estimated duration: 2 months

ARB Token Upgrade Stage

  • Estimated duration: 2 weeks

Hospital and Health Institutions Onboarding Stage

  • Estimated duration: 1 month

Testing Stage

  • Estimated duration: 2 months

Auditing Stage

  • Estimated duration: 2 months

Deployment Stage

  • Estimated duration: 1 week

Conclusion & Community Education Stage

  • Ongoing

Total Months: 6 Months (some activities will run concurrently)

Overall Cost

Smart Contract Development - $10k

dApp Development - $20k

Auditing - $10k

Contingency & Infrastructure- $30k

Marketing & Onboarding Health Institutions Worldwide - $50k

Total Cost - $120k

Technical details

10% of transaction fees go into an insurance contract as a premium via the payPremium(address beneficiary, uint256 amount) function.

The insurance contract records a detailed map of each user’s address and the corresponding amount of premium accumulated, using the mapping(address => uint256) _premium.

Users can donate their premium as a charitable contribution to their healthcare institution or other recipients by claiming with the beneficiary’s address, amount, and healthcare address via the claim(address beneficiary, uint256 amount, address healthcare) function.

Possible Problems with Implementation

  • A lower incentive to validators
  • Increase gas fee
  • Change in the protocol (undesirable)
  • Crypto is illegal in some places
7 Likes
2

Kindly share your thoughts.

3 Likes
3

I don’t like it.
how would fraud be prevented?
how would fraudulent claims be pursued given Nigerian and Indian government’s lackadaisical approach to persecuting existing scammers?
why should people who are already forced to pay for health insurance through their tax system be forced to pay this as well?
why would this not work as a project running on arbitrum/why does it need to be a part of the protocol?
how would having a mandatory health insurance system not drive up the already high costs of healthcare due to the cost being covered with little background establishing information due to the pseudonymous nature of crypto?

3 Likes
4

Allocating transaction fees for health insurance claims is a commendable initiative that can positively impact users’ lives.
However, we need to address the concern of possible fraud to maintain trust in the system. Implementing transparent and anonymous insurance claims, along with robust verification mechanisms, can help mitigate fraudulent activities.
Regular auditing, community awareness, and education are crucial in ensuring the funds reach legitimate beneficiaries and healthcare providers while maintaining the integrity of the process. Let’s prioritize security measures to create a fair and trusted ecosystem.

1 Like
5

While the proposal seems to come from a good place, this seems to be beyond the scope of Arbitrum governance. If you wish to do something like this, the easiest solution would be to launch an Arbitrum Layer 3 with this idea in mind!

2 Likes
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Hello @sneddles, thank you for your response. I want to reassure you that the system has considered the possibility of fraud. It’s important to note that our system does not give out free money but rather returns 10% of your transaction fees as a health premium. You can claim the premium yourself or donate to anyone in need.

It’s worth mentioning that the money does not go directly to individuals but to healthcare providers. Unless you intend to visit the hospital daily, there’s no reason to try and cheat the system. Remember that only those who transact are eligible to benefit from our program.

Lastly, the system has been designed so that it will have little to no impact on the cost of health services. Additionally, any healthcare provider found to be operating maliciously can be removed from the system at any time.

3 Likes
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Yes, that is true. We have factored everything in the design.

3 Likes
8

How do we go about this Layer 3?

3 Likes
9

Honestly, the Layer 3 is the most feasible option we can go with.

3 Likes
10

Check the link on the original post, that’s the official developer doc to get started :slight_smile:

1 Like
11

I just checked it out. It seems you have to reach out to the Arbitrum team.

3 Likes
12

So what’s stopping anyone from posing as a healthcare provider and just changing their credentials when the system gets wise to their scheme? How would these costs associated with fraudulent claims and vetting healthcare providers internationally not exceed the benefit?

Why is this better than simply reducing gas fees by 10% and letting people buy what they actually need with the savings? Again, if they’re in a country where they are already taxed for healthcare, this is putting extra burden on them needlessly.

If this does not go to individuals but to healthcare providers, why would the healthcare providers not charge obscene amounts for superfluous procedures, or not perform the procedures at all and split the money with the person making the claims? Who reports them to the system in that scenario where they are both incentivised to keep the grift going?

Also, how does this not require not only doxxing people’s accounts, but also their private medical situation as well?

4 Likes
13

Cool idea, but really only for Americans. Have you verified health providers world wide or just American providers?

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Verification. There is a thorough verification process to add a provider. Also, users won’t claim from a fake healthcare provider - it doesn’t just make sense. Providers can be removed for playing foul - losing their reputation.

3 Likes
15

Worldwide, we will expand gradually.

3 Likes
16

This is a nice idea but I don’t think this is an appropriate or relevant direction for this project to follow.

2 Likes