Specifications and Process

The Takaturn FUND contract (TFC)

• the TFC receives fund contributions during cycle funding period (e.g. 48h duration), recurs every cycle

• It selects the next beneficiary in line based on a first-come-first-served basis. (i.e. first to pay collateral will be the first money pot beneficiary)

• It adds the contributions made in a cycle to the balance of the beneficiary. The beneficiary is then able to withdraw his balance by transferring it to the wallet of his choice.

• It triggers events to notify listeners of the Fund status and activity. For instance, an event is triggered when a participant deposits a cycle contribution.

• The TFC communicates with the Vault contract to report defaulting users.

• The TFC executes every cycle until the term is complete

Technical Specifications

Step 1: Setting the DAO parameters

The smart contract constructor sets the initial configuration of a DAO. The following parameters can be selected:

• The size of the DAO (eg. 10 members)

• The required cycle contribution (eg. $100)

• The required collateral deposit (eg. $150)

• The duration of a cycle (eg. 1 month)

• The duration of the funding period (eg. 3 days)

• The stablecoin address (eg. USDC’s address)

Having a configurable stablecoin address enables DAOs to flexibly select their stablecoin based on demand and use case. Currently, the stable coin configured for each DAO in the first phase is USD Coin (USDC). Currently, enrollment period is fixed to 7 days, configurable for the next phase.

Furthermore, contributions from the DAO are allowed from whitelisted public keys/addresses only (next DAO phase). Each participant should have a specific public key/address from which all monies (for collateral or fund) originate and are returned.

Example: 10 participants for 10 months for a total contribution of $1,000.

Enrollment period of 7 days and funding period of 48 hours.

Step 2: DAO is launched by first collateral amount received in the VAULT contract

When the first participant sends the collateral amounts into the VAULT contract, it activates the contract and starts the enrollment period.

Whenever an amount is received by the smart contract, the contract checks that funds are equivalent to the required collateral amount in ETH. Otherwise the transaction will fail and the user will not be admitted to be part of the term.

Example: 1.5 x total contribution amount = $1,500 in ETH. If the current price of ETH is $2,000/ETH, then collateral in the amount of 0.75 ETH should be sent.

Step 3: Enrollment period concludes

If the enrollment period concludes without enough participants, all collateral amounts will be made available for participants to withdraw back to the originating address.

If the enrollment period concludes with the requisite number of participants and amount of collateral, the FUND contract is activated and the first funding cycle commences.

Example: 7-day enrollment period