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 .

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.