Cult DAO is a community-centric decentralized autonomous organization, that aims to help people fund, build & scale ideas and projects that will contribute to decentralization in a transparent and fair method.
Its mission is to provide people with the skills they need to “break away from societal, economic and other norms.” Users may actively vote on funding for projects concentrating on decentralized apps to achieve this goal.
To enable the creation of a completely decentralized economy, the protocol employs CULT, a hyper-deflationary coin. The CULT token powers CULT DAO’s decentralized funding mechanism and is the fuel and engine of the organization. Unlike certain deflationary tokens on the market, the developers claim that CULT is not a charity token or a speculative currency.
Tokenomics
Every CULT transaction sends 0.4% of the transaction’s value in CULT to the CULT DAO treasury. The Treasury removes CULT from the circulating supply in this manner, placing it into a smart contract that can only release it back into circulation at a predetermined maximum level.
CULT DAO destroys 2.5 Ether equivalent of CULT for every 13 Ether equivalent that it sends to protocols. It also employs a half-and-half redistribution approach, with half of the tokens being burned and the other half going to dCULT holders. This happens when an investee project sells its tokens to buyback CULT.
CULT can be staked for dCULT, and the Guardians are the top 50 stakers, with roughly 15 of them pre-appointed. These were all trusted Ethereum and decentralization proponents, like David Hoffman, Justin Wu, Guto Martino, Dominic Ryder, and Jeremy Guzmán, to name a few.
Guardians have just the ability to make proposals. They won’t be able to vote with their token allotment unless they were to drop out of the top 50 stakers.
“The Many” on the other hand, are outside of the top 50 stakers. The Many are the ones who determine whether or not suggestions should be passed.
If The Many approve a proposal, the investee protocol receives 13 ETH worth of CULT, with 2.5 ETH worth of CULT being burnt.
What makes CULT DAO different from the rest?
99% of proposals are debated in advance on CULT’s Discord channel, and the CULT development staff cultivates relationships with opposing leaders and trusts them to be rational.
A noteworthy aspect of CULT is that every decline in its value vs. Ethereum raises two things. First, it increases the quantity of CULT burnt, and second, it increases the amount of CULT pulled out of circulation and into the treasury with a steady volume.
This means that the longer CULT stays in a down market, the faster it will be burnt and removed from circulation. Every second CULT spends in the red reduces the time it takes for it to become green. Every sell and any potential drop in price only serves to transfer value from short-term holders to those with the patience for a medium-long term hold.
The tokenomics are designed to withstand, and even profit from, any crypto winter, while any price and volume surge to the upside allows the growth of all of the extra CULT extracted at a cheaper cost.
For this reason, CULT DAO is also called the infinite machine.
This is a token and protocol that requires no team and has no ownership. It is designed to be totally community-run, with no administrative oversight of contracts or technology.
As part of the CULT community, CULT DAO is not segregated. Anyone may utilize it as long as they have a good idea that a Guardian is willing to share with The Many. CULT’s mission is to hasten the monetary system’s demise, by all means, necessary, alongside everyone else.
To know more about CULT DAO, visit their website, manifesto, Medium, Twitter, or join their Telegram, or Discord Server.
DISCLAIMER: THIS IS A SPONSORED POST.