# Executive Summary

## Takadao Vision

We envision a world where communities work together to uplift everyone financially and socially, and trust is no longer outsourced to institutions that cause financial instability.

## Takadao Mission

Our mission is to empower communities with trustless and transparent Web3 alternatives to banks and insurance companies, promoting financial freedom for all. We do this through innovations that are reliable, inclusive and affordable.

## An Argument for Decentralised, community-based finance built on Distributed Ledger Technology

Takadao Holdings has created an innovative financial solution using contemporary technology (specifically Distributed Ledger Technology (DLT) aka Blockchain). Our first offering, Takaturn, is an extension of the concept of Building Societies, Credit Unions and the like. DLT ensures that the interests of the collective are put before any one organisation or party .

{% embed url="<https://www.investopedia.com/terms/b/building-society.asp>" %}
Definition of Building Societies and Credit Unions
{% endembed %}

The difference between Takaturn and traditional credit unions is that Takaturn is trustless, transparent, reliable, decentralised and unleveraged. Traditional credit unions, practiced by friends and family require a high level of trust and hence fall short on scalability. When scaled, there is a high risk of default.&#x20;

Institutional credit unions, on the other hand, have a centralised entity managing funds to reduce the default risk. This inevitably leads to leverage being applied to the funding pool. This poses different risks to participants.

The feature of traditional financial institutions over the last 3 decades has been failure to protect investor funds and the common cause has been leverage. The risks associated with leverage can be far reaching and places investor funds at risk.

At Takadao we looked at these events in various orders of analysis and came to a conclusion that **Interest is BAD** (whether lending or borrowing). Further to this, we concluded that the traditional financial system is driven by transforming savers into debtors, as a result of an inflating money supply that disincentivises savings and incentivises debt.

The Takaturn offering is based on age-old, wholesome Islamic ethos and principles that dictate how communities should structure their lending and borrowing practices. Importantly, these ethics and principles FORBID interest and leverage, so that no matter how large the structures grow to, there is always a 1:1 ratio of assets to liabilities. An important point to note is that although Takaturn has been constructed around Islamic principles, it is ***NOT ONLY*** for the Islamic community.

This whitepaper will show that traditional finance is a debt driven, inflationary system that negatively impacts savings and wealth creation without benefit to the individuals that participate in it. Furthermore, the system requires a constant supply of debt burdened individuals, families, communities, societies and nations. *And finally, this whitepaper will elaborate on why Takaturn is a viable alternative to traditional finance.*

Takaturn revolutionises the concept of lending, borrowing and saving, using impactful technology and innovation. This solution is designed to be inclusive to a global audience. Takaturn facilitates wealth transfer and a savings mindset.
