About The LifeDAO
This FAQ page covers The LifeDAO’s shariah-compliant, community-powered life insurance, member perks, and transparent blockchain governance.
What’s The LifeDAO (TLD)?
The LifeDAO (TLD) is a fresh take on life insurance, but with a twist—it’s shariah-compliant and built by the community, for the community, on the blockchain. Inspired by Takaful, TLD lets members pool their resources to protect each other from life’s unexpected events.
How's The LifeDAO different from traditional life insurance?
Unlike traditional insurance where a company calls the shots, The LifeDAO is all about you and the community. Members own the fund, share the risks, and enjoy the rewards. Your contributions don’t just disappear into a company’s pocket—they go into a mutual fund that you actually have a say in.
What’s the mission behind The LifeDAO?
We’re on a mission to make life insurance accessible and fair for everyone, especially those who need shariah-compliant options. Traditional life insurance can be expensive and out of reach, but The LifeDAO is here to change that.
What does TLD do to make sure it's Shariah-compliant?
At The LifeDAO (TLD), we take Shariah compliance extremely seriously. Here's how: Our dedicated Shariah Compliance Department keeps a close eye on all operations, ensuring everything aligns with Islamic principles. They have unrestricted access to all records, transactions, contracts, agreements, and relevant information to ensure thorough oversight. Working hand-in-hand with our Shariah Board—led by experts like Dr. Hany Helmy, an AAOIFI-certified specialist in Islamic finance and Takaful, and Mufti Billal Al Omarjee, founder of Shariah Consultant Ltd.—we make sure our practices are on point. Plus, TLD plans to bring in external advisory firms for that extra layer of independent certification.
What are TLD Membership Credits, and why should I care?
TLD Membership Credits are like an entry ticket. They confirm your membership, give you voting power in the DAO, and represent your share in the community’s financial health. The more credits you have, the bigger your voice and your share in the surplus.
Does my family have to pay taxes on the beneficiary payout?
As you can imagine, the unique structure of TLD as a not-for-profit DAO that uses crypto for payments means that there isn't really a precedent to answer this question in most countries.
But let's break things down. The tax rules for a beneficiary payout depend on the country where the transaction happens (i.e. where your family lives at the time of your passing). It boils down to a key decision your local government will make: Do they consider the beneficiary payout as a gift from a non-profit or do they consider it an income? TLD is a not-for-profit organization where people contribute money to a collective fund ton support the families of members that have passes away. So from TLD's side, the benefit payout acts as a gift - meaning you didn’t have to do any work or service to receive it - to the family member. In most countries, if the money comes from a non-profit and is considered a gift, it’s not taxed as income. That being said, some countries might apply gift taxes or other rules, especially if they argue the gift isn’t directly tied to the non-profit’s main charitable purpose. To make things even more complicated, there's also still a chance that the government will decide that the payout is linked to services or work and then could tax it as income.
Long story short, we don't know the right answer for your situation (plus, if your beneficiary has moved countries by then, things might change, too). To be sure which tax implications apply to your situation, it’s a good idea to check with a local tax lawyer.
What do I get as a member of The LifeDAO?
As a TLD member, you get:
Benefit Payout: Your beneficiaries receive a lump sum payout if something happens to you.
Surplus Distribution: If you don’t need a payout and stay a member for 5 years, you can cash out your share of the surplus.
Governance Rights: You get to vote on decisions that shape the future of the DAO.
How do you figure out how much my family gets if I pass away?
It’s pretty straightforward. We use a formula:
Benefit Payout = Your Individual Risk (Base Benefit Multiplier) × The Health of the Fund (Benefit Multiplier Adjuster) × Your Annual Contribution. So, the more you contribute and the healthier the fund, the bigger the payout.
What’s the Verifier Incentive Program (VIP)?
The VIP is a way for you to get even more involved. By helping verify claims within the Decentralized Claims Management (DCM) process, you earn rewards that can boost your Benefit Payouts and Surplus distributions.
How does decision-making work in The LifeDAO?
You’re in the driver’s seat! Members make the big decisions through voting. Your vote’s power depends on how many Membership Credits you own. We also have a few committees that help manage the day-to-day stuff.
What’s this Takadao Protocol I keep hearing about?
The Takadao Protocol is the tech backbone of The LifeDAO. It’s a set of smart contracts and algorithms that keep everything running smoothly and transparently, without the need for a central authority.
Is The LifeDAO really shariah-compliant?
Absolutely! The LifeDAO is built on the principles of Ta’awun (mutual assistance) and Tabarru (voluntary contribution), and it’s designed to avoid anything that’s prohibited in shariah, like interest (riba), gambling (maisir), and uncertainty (gharar).
How do I become a member of The LifeDAO?
It’s easy! Just head over to the LifeDAO website, buy your membership, and you’ll receive TLD Membership Credits. Join our Discord server to start participating in discussions and voting on proposals.
What does the Treasury Committee (TC) do?
The Treasury Committee is like the DAO’s financial brain. They manage investments, cash flow, and make sure we’re on solid financial ground. They keep an eye on everything to ensure the community’s funds are used wisely.
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