> 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/taka-tokenomics-litepaper-v1/taka-tokenomics-in-brief/token-utility-taka-for-fees-and-boosted-benefits.md). # Token Utility: TAKA for Fees and Boosted Benefits A key utility of the token is the ability to pay tDAO membership fees with TAKA, which gives a member higher Benefit Payouts. On the backend, Takadao subsidizes this by discounting the protocol fee that it collects from the tDAO. Once listed on an exchange, the TAKA token will have a market value as determined by demand and supply. 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. In turn, Takadao reduces the protocol fee it collects from the tDAO as shown in the following example. Discounted fee calculation example


Takadao fees if paid with non-TAKA tokens	22%
Takadao fees if paid with TAKA tokens	17%

Payment Token	Contribution	Takadao Fees	Membership Credits	Added to tDAO fund	tDAO price per token
USDC	$100.00	$22.00	100.00	$78.00	$0.78
TAKA	$100.00	$17.00	106.41	$83.00	$0.78
TAKA	$95.00	$16.15	101.09	$78.85	$0.78

In the second line of the example above, the tDAO receives a contribution equivalent to 100 USDC in TAKA tokens from a member. The tDAO then sends the TAKA tokens to the Takadao treasury which in turn reimburses the tDAO 83 USDC, equivalent to 83% of the contribution, with 17% going to Takadao fees. The member receives 106.41 [Membership Credits](#user-content-fn-1)[^1]. In this example, because of the discount in the protocol fee, the tDAO receives a larger share of the contribution and the member receives more Credits, which translates to a boosted Benefit Payout in the event of a claim. Had the same contribution been paid in USDC, the tDAO will only receive 78 USDC and the member would only receive 100 Membership Credits and a lower expected Benefit Payout. All these interactions are automated by smart contracts. [^1]: To learn more about how tDAO Membership Credits and Benefit Payouts are calculated, please refer to the [whitepaper](https://docs.takadao.io/takadao-docs/part-b.-takadao-the-daos/05-tdaos-tokens-aka-membership-credits). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.takadao.io/takadao-docs/taka-tokenomics-litepaper-v1/taka-tokenomics-in-brief/token-utility-taka-for-fees-and-boosted-benefits.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.