# TAKA for Fees

A key utility of the token is the ability to pay tDAO membership fees with TAKA at a discounted rate. The TAKA token is issued by Takadao and token sale proceeds enter the Takadao treasury. Hence, Takadao pays for the discount for tDAO membership fees when they are paid using the TAKA token. The discount simply means that Takadao receives less fees. 

Once on the market, the TAKA token will have a market value as determined by demand and supply. Hence, when a token holder contributes to the tDAO using TAKA tokens, he will be paying at the value that the TAKA token can be swapped for on the secondary markets. And since a portion of that contribution is owned by Takadao by virtue of the technology use fee, we can pass part of that fee amount back to the member by means of a “discount on fees”. In practice, the member will receive more TLD credits if he pays using TAKA tokens than if he uses other tokens. 

**Discount calculation example**

<figure><img src="https://lh7-us.googleusercontent.com/docsz/AD_4nXe46v_ZNQnV1Y7y6tZTggcM4Z6mBPfuHaQ7cdEQyiA612JLTfqeyFnNc5j0SYsezxD2d2MMrViLDq8ZcMNHr8vSXbnK5U4vAaNJQQN835oBmLqGAU7EfdQWOJJkEMdEzEvnkZrJs7_aoTA_tmn4-IPawb1w?key=ANIS1ST1ItkXCqB9L9mbyg" alt=""><figcaption></figcaption></figure>

The LifeDAO (TLD) receives a contribution in TAKA tokens, at which point they will send the TAKA tokens to the Takadao treasury which in turn reimburses The LifeDAO 78% (less 22% technology use fee) of the value of the TAKA tokens. In this way, The Life DAO is fully reimbursed. All these interactions will be automated by smart contracts.&#x20;


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