# 05 - tDAOs’ Tokens aka Membership Credits

The native unit of exchange of any blockchain-based protocol is a token. In the general DAO ecosystem, tokens represent ownership and rights to governance. Similarly, in tDAOs, the native unit of exchange is represented on the blockchain as a token. However, these tDAO tokens are limited in scope. They are always locked in the ecosystem and cannot be sold or transferred. For this reason, we choose to refer to these tokens as “Membership Credits”.


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