Make a contribution, receive Membership Credits, become a member

To become a member of the tDAO, an individual starts by contributing to the tDAO fund and receiving tDAO Membership Credits in return. At issuance, each Credit is pegged 1:1 to ; in other words, 1 USDC added to the tDAO fund will result in 1 newly minted Credit. The Credit is only issued when new money is added into the tDAO fund; Credits are not pre-mined or issued ahead of time.

As the technology provider, Takadao, will receive protocol fees of 22% on all funds contributed to the tDAO fund. For every 100 USDC that is paid by a participant, 22 USDC will be given to Takadao and 78 USDC will be added to the tDAO fund, with 100 Credits issued.

Note that Takadao does not share in the underwriting surplus of the tDAO.

At entry, each Credit is pegged 1 Credit to 1 USDC. At exit, each Credit is pegged to the value of the surplus held by the tDAO fund (as described in the preceding section). To determine the value of each Credit at exit, take the value of the surplus in the tDAO fund divided by the total number of outstanding Credits. For example, if the DAO fund has 1,000 USDC worth of surplus and there are 500 outstanding Credits, then each Credit = 1,000 USDC / 500 = 2 USDC.

The Credit value at entry and the Credit value at exit are different for functional reasons as will become clear subsequently.