5. Our Core Activities: Protect, Grow, and Connect
Activities of The LifeDAO Association
The Association exists to Protect and Grow through the collective action of the Community. These objectives are achieved by pooling financial resources together in the “Community Fund” and using these resources to mutually protect and collectively grow member wealth.
Protect
The goal of The LifeDAO is to protect its members. The Association has “Protection Reserves” made up of member contributed funds, collectively called the “Community Fund”. The protection reserves are dedicated to mutual protection as an alternative to insurance.
The first step performed by every TLD member is to contribute membership dues to the Community Fund. A portion of these membership dues are used to pay for the protocol provider, Takadao, for use of the smart contracts and technologies that underpin TLD operations. The remaining is deposited into the Community Fund, earmarked for the Life Protection Reserve.
Life Protection Benefit
The inaugural Life Protection Reserve pays out to beneficiaries in the event of a member’s passing according to pre-defined rules of the underwriting algorithm, functioning as an alternative to life insurance. The Protection Reserves are managed by smart contracts and are shariah-compliant.
Other Protection Benefits
Protection Reserves can be used for mutual protection against a variety of risks and act as alternatives to life insurance, burial and repatriation insurance, health insurance and others.
Protection Reserve Surpluses, amounts that are “leftover” after payouts are made, are distributed back to members periodically, according to pre-defined conditions.
Grow
Another equally important goal of The LifeDAO is to contribute to the growth of member wealth, both individually and collectively.
The Community Fund is made up of income from products that are owned and operated by The LifeDAO, products that are commonly used by members of The LifeDAO. These products may be commissioned by TLD and built by third party service providers, including Takadao and others.
Collective Investment Pools
The first of such products is the Collective Investment Pools, which allows members to pool funds together to invest collectively in digital assets. The primary use of the Collective Investment Pools is to invest the Community Fund to generate a yield. The secondary use of the Collective Investment Pools is to allow members to participate in wealth generation by investing individually alongside the Community Fund. By joining with the Community Fund, members can invest with lower ticket sizes, while still being able to access investments that have minimum thresholds, such as Bitcoin Miners and tokenized real world assets. Importantly, members benefit from the collective wisdom of the community who constantly monitor and adjust the investment strategy as the market changes.
Individual members grow their wealth through this vehicle, while The Association generates revenue from:
the return on investments from investments made by the Community Fund
bonuses paid from member returns when profits exceed a pre-defined threshold.
Prepaid Crypto Payments Card
Another key product is the Prepaid Crypto Payments card, which acts as a bridge between the crypto ecosystem and the real world by allowing members to spend their crypto like cash anywhere VISA cards are accepted. This enables members to use their crypto (from the Association or otherwise) in the real world. The Association earns revenue from the Prepaid Crypto card by collecting fees associated with the use of the card.
Revenue to The Association from these products, among others yet to be defined, enter the Community Fund in the same manner as member contributions. While members individually benefit from these products that enable wealth creation, The Association benefits by generating revenue from the use of these products.
Product revenue to the Community Fund may be used to bolster the Protection Reserves in the event of poor fund health due to unexpected adverse events. While possible, such events are outside the norm, and under normal circumstances, revenue is added to the Community Fund Surplus, which is distributed to members periodically, according to pre-defined conditions.
Community and Governance
The final and most important of the Association pillars is the Community. The LifeDAO Association relies on the collective wisdom and strength of the Community to prosper. Governance processes ensure that the voice of the Community is always the primary voice and individual members exercise their will through voting. Strategies and tactics that govern TLD operations are directed by the Community through these same governance processes.
Nonetheless, the first role of the Community is to engage meaningfully to build real human connections, to share knowledge and support in all matters related to the shared goals of the protection and growth of individual and collective wealth. To this end, a robust platform to enable communications both collectively and individually is maintained as part of TLD operations. This includes both a technical platform and the function of community management.
Flow of Funds
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