Terminology

Types of Participants

Participants “Members”	The individuals who are contributing to the DAO contracts, as represented by their public key/address. Example: 10 participants
Beneficiary “Turn Champion”	The participant who receives the total contribution amount in the current cycle. Each participant can only be a beneficiary once in each term.
Benefactor	A participant who was a beneficiary in a previous cycle
Defaulting	A participant who has missed one or both cycle contributions in the past two cycles.
Graced Defaulter	A participant who is selected as the beneficiary despite missing current or previous cycle contribution. This happens if no other participant is eligible.
Uncollateralized	A participant who has no collateral in the VAULT (collateral has been liquidated completely or distributed to others)
Expelled	A participant who has been removed from the DAO.

How does Takaturn function

Functions of the Collateral VAULT contract (CVC)

• Launch DAO by receiving collateral (exact amounts only, incorrect amounts rejected) into the CVC

• Close DAO to new participants when requisite amount of collateral from requisite number of participants is received

• Triggers events to notify listeners of the vault status and activity. For instance, an event is triggered when a participant withdraws their collateral.

• Liquidates collateral to make cycle contributions when contributions are missed.

• Releases all collateral back to participants once Term is complete