# Allocation of Membership Contributions

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Every membership contribution that is made to The LifeDAO is allocated to the fund in the following ways:&#x20;

* Reserves - Varies according to the expected Benefit Payouts, typically 50-70%
* Protocol Fee - Fixed 22% paid to Takadao
* Operational Expenses - Varies according to needs of the DAO as decided by DAO membership, typically around 5%
* Surplus Distribution to members - Varies, surplus is whatever is leftover in the fund after all Benefits and expenses have been accounted for.&#x20;

For more details on how each of these allocations are calculated by the Takadao protocol, please refer to the Takadao whitepaper.&#x20;