> For the complete documentation index, see [llms.txt](https://docs.takadao.io/takadao-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.takadao.io/takadao-docs/part-b.-takadao-the-daos/05-tdaos-tokens-aka-membership-credits/membership-credits.md).

# Membership Credits

Utility of the tDAO Membership Credit:

* Tracks member contributions 
* Tracks member rights to Benefit payouts
* Tracks member rights to surplus distribution
* Enables governance and voting
* Enables members to participate in the Verifier Incentive Program, receive referral bonuses, receive loyalty bonuses and exercise privileges in the Takadao ecosystem

The key differences between regular DAO tokens and tDAO membership Credits are represented below:

| <p><br></p>                                                                                                    | tDAO Membership Credits                                                                                                                              | [Other DAO tokens](#user-content-fn-1)[^1]        |
| -------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------- |
| <p>Entry Price of Token </p><p>(At Issuance)</p>                                                               | 1 Credit per 1 USDC of contribution                                                                                                                  | Market pricing based on supply and demand         |
| <p>Exit Price of Token<br>(At expiration of membership and exit of DAO, token is burned)</p>                   | <p>Price depends on value of surplus and is calculated as </p><p><br></p><p>1 Credit = (total surplus value/total outstanding Credits)</p>           | Market pricing based on supply and demand         |
| <p>Benefit Price of Token</p><p>(In case of benefit payout due to occurrence of adverse event, i.e. death)</p> | Credit is not priced, payout amount depends on number of tokens, member B.BM and prevailing BM.A.                                                    | Not applicable                                    |
| Transferability                                                                                                | Immediately locked after membership is confirmed. Once unlocked, Credit is redeemed and destroyed (in the event of membership expiration or payout). | Tokenholder can sell and move tokens at any time. |

**Important Note**: tDAO membership Credits are not to be confused with the Takadao ecosystem token (TAKA); there is no direct relationship between them.&#x20;

[^1]: There may be variations to how tokens work depending on the type of DAO.


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