Takasure Tokenomics and Membership

One of the most exciting use cases of the blockchain is the ability to create tokens that have value and whose transfers are tracked and immutable. The Takasure ecosystem’s native token, the TAKA token underpins all the financial operations of the DAO fund, which allows for unprecedented transparency and governance over all financial transactions. This section describes the functionalities of the TAKA token.

Purchase tokens, become a member

In order to become a member of the DAO, an individual should purchase TAKA tokens. At issuance, the token price is pegged 1:1 to USDC; in other words, 1USDC added to the DAO fund will result in 1 newly minted token. The TAKA token is only issued when new money is added into the DAO fund; tokens are not pre-mined.

TAKADAO will receive management/wakala fees of 25% on all funds contributed to the DAO fund. As such, for every 1USDC that is paid by a participant, 0.25USDC will be given to TAKADAO and 0.75USDC will be added to the DAO fund, resulting in 0.75 TAKA being minted.

It should be noted that the TAKADAO management fee is the only fee that the company will take, there are no other fees and the company does not share in the underwriting surplus except with the express permission of DAO participants.

As was previously stated, token value at minting is pegged 1:1 TAKA to USDC. Post issuance, token value is pegged to the value of the assets held by the DAO fund. To determine token value at redemption, take the value of the assets in the DAO fund divided by total number of outstanding tokens. For example, if the DAO fund has 1,000USDC worth of assets and there are 500 outstanding TAKA tokens, then each TAKA = 1,000USDC / 500 = 2USDC.

The token value at minting and the token value redemption are different for functional reasons as will become clear in the rest of this document.

Once an individual has purchased TAKAs, he/she is now a member of the DAO fund and may participate in governance voting and be entitled to a share of the underwriting surpluses of the fund. However, in order to get insurance coverage, the member will need to stake their tokens in an insurance contract.

Stake a token, create an insurance contract

In order to obtain insurance coverage, the member would stake his/her token into an insurance smart contract that defines the parameters of the coverage, including the benefit multiplier assigned to the member. The TAKAs are staked, meaning they are locked up in the contract, for the duration of the insurance contract, i.e. 1, 5, 10, 20 years. When the TAKAs are locked up, they cannot be withdrawn out of the smart contract and so they cannot be traded nor redeemed. As long as the TAKAs stay staked, the insurance coverage is in force.

Upon insurance contract maturity and assuming no claims were made and no insurance benefits paid out, the staked TAKAs will be unstaked and released to the member, free to be withdrawn and transferred. Once the TAKAs are unstaked, the insurance coverage terminates. At this point, the member may:

• re-stake his/her TAKAs in a new insurance contract

• withdraw/transfer his/her TAKAs out of the smart contract to be traded or stored

• redeem his/her TAKAs against his/her share of the underwriting surplus as described in the next section