Takadao Docs
Takadao Whitepaper v2 (tDAOs)
Takadao Whitepaper v2 (tDAOs)
  • Introduction
  • PART A. BACKGROUND
    • 01 - The Insurance Industry
      • Origins of insurance: Mutual protection and risk-sharing
      • The rise of the modern insurance industry
      • The insurance industry today
      • Key Consumer Complaints Against Insurance Companies
    • 02 - Introducing Takadao
      • Takadao: Addressing Consumer Complaints and Industry Challenges
      • Basics of the Blockchain
      • “Taka DAOs (tDAOs)” vs. Centralized Insurance Companies
  • PART B. TAKADAO: THE DAOs
    • 03 - Takadao Technology
      • The Takadao technology stack
      • tDAOs’ user journey
        • Risk assessment and KYC
        • Contribution
        • Membership Credits
        • Get a Payout
        • Redistribution of Surplus
        • Participate in Governance
    • 04 - Underwriting & Risk Management Algorithm
      • Introducing Dynamic Underwriting
        • Absence of capital providers
        • Fluctuating reinsurance protection
        • Using data in real time
      • Takadao dynamic underwriting: A closer look
      • Risk and the Benefit Multiplier (BM)
        • Individual risk and the Base Benefit Multiplier (B.BM)
        • Portfolio risk and the Benefit Multiplier Adjuster (BM.A)
      • Dynamic Underwriting Reserves
        • Calculating the Benefit Multiplier Adjuster (BM.A)
        • The Dynamic Reserve Ratio
        • How underwriting surpluses are calculated
    • 05 - tDAOs’ Tokens aka Membership Credits
      • Membership Credits
      • Make a contribution, receive Membership Credits, become a member
      • Membership agreement
      • Redeem/burn Credits, exit the DAO
      • Credits determine insurance benefit
      • Discontinuing membership before contract maturity
    • 06 - Benefits Payout Protocol
      • Decentralized Benefit Payout Management (DBPM) - A multistage process
        • Stage One - Document Review
          • Pre-verification
          • Manual Verification
          • Stage One Results
        • Stage Two - IRL Verification
          • Stage Two Results
        • Stage Three - Professional Review
  • PART C. TAKADAO: THE COMPANY
    • 09 - The Takadao Vision
      • Vision & Mission
      • Business Model
      • Shariah compliance
    • 10 - The Takadao Token (TAKA)
      • Token Utility
        • TAKA for Fees
        • TAKA for Staking - Reprotection Pool (rePool)
        • TAKA for Rewards
        • TAKA for Governance
      • Token Supply and Distribution
        • Token Supply
        • Token Allocation
        • Token Emissions Schedule
      • Value Accrual and Price Stability: Sources of Token Demand
        • Buy Back and Burn (BBB)
          • Schedule for BBB
          • Mechanism for BBB
        • rePool Staking
          • Benefits of rePool
          • Distribution of rePool yield
          • rePool Loan Support to tDAOs
          • tDAO to rePool Loan Repayment Modalities
        • Lock-up and Vesting Schedules
  • References
Powered by GitBook
On this page
  1. PART B. TAKADAO: THE DAOs
  2. 03 - Takadao Technology

The Takadao technology stack

The primary operations of a conventional insurance company are the following:

  • Underwriting and risk management - Pricing of premiums, reserving, cash flow management and related

  • Claims management - Adjudicating and adjusting claims and benefit payouts

  • Investment management - Investing funds to grow reserves

  • Sales and customer service

Takadao builds the technology to power mutual protection DAOs (tDAOs) that are alternatives to insurance companies. To replace the core functions of the insurance company, Takadao has built the following technology stack:

  • Risk management algorithm

  • Membership and payment management

  • Decentralized payout management and the Verifier Incentive Program

  • Web User Interface (UI) to enable members to interact with the DAO

Note that investment management is not currently in the scope of the Takadao technology stack. As asset management is a well-developed field in the web3 ecosystem, it is feasible for the tDAOs to engage third-party investment managers to fill this gap.

Takadao enables tDAOs to form around a variety of risks. The very first DAO that will be powered by Takadao, The LifeDAO, is a life insurance alternative. In the event of a member’s passing, their family will receive a payout based on the Takadao underwriting algorithm.

As the world changes, new risks have emerged and old risks have intensified. The insurance industry is struggling to keep pace and that’s where mutual protection DAOs can fill the gap. Homeowners in wildfire prone areas are being canceled en masse. Homeowners in flood-prone areas suffer from the same insurance crisis. A whopping 4.5 billion people globally do not have medical insurance. Large swathes of the global south consider life insurance to be a luxury.

There are also unconventional risks that insurance companies avoid. Pet insurance, crypto insurance, insurance against bank failures above government-insured maximums and even alien abduction insurance are all possible with Takadao as the underlying technology, as long as there are enough people to form a community tDAO.

Previous03 - Takadao TechnologyNexttDAOs’ user journey

Last updated 9 months ago