Let's just say you create a new country with no govt where everyone has to have insurance for crimes to enter. Say 1 btc. So then if I commit any crime some or all my btc is taken. Then if I lose all the btc I am killed. Maybe that can work, if the escrow is somehow funded and doesnt become corrupt and somehow you fund tbe executioner and the overseer of the executioner and the democratic process that ensures the overseer doesn't become corrupt... see where it goes?