Decentralization as a process is a new trend in the modern world, as it ensures the dispersion of forces, functions, power, or people from the governing body. That is why cryptocurrency, unlike fiat money, is safer, since it does not belong to a particular state or organization. Cult Dao is a revolutionary project that believes in decentralization as a replacement for the existing financial system. Today we will talk in more detail about Cult Dao, its features, benefits, and advantages.
What Is
Cult DAO is an Ethereum-based project run by an anonymous group of people whose main goals are to fight for justice, financial freedom, and a decentralized future. This decentralized autonomous organization is community focused and helps thinkers and inventors not only fund but also scale their blockchain projects that are fighting against the centralized system.
This project is aimed at the financial revolution as much as possible and wants to help people move away from the usual economic vision, offering DeFi as a smarter and safer alternative. That is why Cult DAO is doing everything possible to ensure that its users receive all the necessary tools to launch and improve their DeFi projects.
Another distinctive feature of Cult DAO is that any member of the community, regardless of their role in the financial system, can submit proposals to the DAO, and receive not only support from the community but also funding for their contribution.
How Was Cult DAO Created?
Cult DAO was made as a means of struggle and rebellion against the financial system, where all people are nothing but a means to enrich the central banks. The anonymous creators of Cult DAO were not happy with this economic function that we all perform, so they created a project aimed at a decentralized financial system.
Moreover, since freedom, including financial freedom, is important for most people, the cult DAO offers people a path free from the current financial system. "Whether it’s from the freedom to decentralize by investing in blockchain technology, or the freedom to love who you love, what we all desire more than anything else is freedom. Out of this quest for freedom, Cult DAO was born." - ByBit.
Thus, Mr. O'Modulus (Cult DAO creator) released The Cult Manifesto and released this DAO in early 2022. In The Cult Manifesto, he announced that Cult DAO is the “world's first completely decentralized token for “those contributing or building towards a decentralized future.” The main goal of this project – is to become the first fully decentralized financial system to help and sponsor those who, like Cult DAO, are fighting against the existing injustices of the system. This concept helped to develop a completely autonomous self-governing system, where there are large participants, the so-called “The Guardians” and other people who contribute to projects and are called “The Many”.
What Is CULT Token?
According to the CultDAO website, CULT is the tradable and liquid token of Cult DAO, and transacting CULT will contribute to the protocol by filling the DAO treasury slowly, to fund investments into decentralized technologies. This is achieved due to a 0.4% tax on all CULT transactions.
To implement the concept we described above, a transaction and exchange of CULT are required, which directly ensures the constant replenishment of the treasury, the provision of project financing, as well as payments to investors. Thus, it is to support a fully decentralized economy that the DAO’s blockchain protocol uses the CULT token. “The CULT token powers the Cult DAO organization and fuels its decentralized funding mechanism. Unlike certain deflationary coins on the market, the Cult developers claim the token is not a speculative currency or charity token” - ByBit.
What Is dCULT?
The CULT token, once pledged to the Cult DAO, is converted to dCULT. According to the Cult DAO website, “dCULT is just the “proof of stake token” for CULT. In other words, when you decide to stake your CULT into the DAO, you receive a certain amount of dCULT. If you wish, you can exchange them back at any time for the amount you staked and receive all the rewards that the DAO gave you while owning dCULT.
How Does DAO Project Funding Work?
As recently mentioned, the Cult DAO project has its own Treasury, which is replenished with transaction fees collected by the protocol. As mentioned, it is based on the Ethereum network, so a fee of 0.4% (on each transaction) is sent to the treasury and accumulates a USD value corresponding to the market value of 15.5 ETH.
Another feature of Cult DAO is that it automatically sends 13 ETH to fund the project if the proposal has been approved, while 2.5 ETH is burned.
(Resource CultDAO)
Cult DAO Proposals
As for the proposal, it can promote or improve any idea related to decentralization, such as the fight against central banks or obsolete financial structures. The creators of Cult DAO tend to divide all potentially attractive proposals into several groups, or guidelines:
- Fight against centralization.
- Further, the cause of decentralization.
- Directly benefit a noble cause.
How to Submit a Proposal to Cult DAO?
To pitch your decentralized revolution idea, you can either contact the Guardian of the Cult DAO or become one yourself.
Who Are the Cult DAO Guardians?
The Guardians projectors include the top 50 CULT stakers with the largest token share. They are necessary to filter ideas and be responsible for what proposals are or are not worth bringing to the Cult DAO for voting. All other CULT stakers belong to the “The Many” category.
A distinctive feature of the Guardians is that they do not have the right to vote on proposals, so they can only submit them for consideration. Thus, even though they are responsible for the proposals, the decision is made by many CULT stakers.
Criteria for Cult Dao Proposals
First, the proposal must comply with at least two of the three guidelines described above. In addition, it must also unsubscribe the five structural elements of the investee project:
- The total supply of the investee token. The token cannot have minting capabilities, which should be subject to audit.
- The percentage of the total number of oceans must be equivalent to 13 ETH. That is why users need to independently calculate how many tokens equal the sum of 13 ETH.
- Cult DAO tokenomics. Detailed information about all the features of the token, such as its distribution and the lockup period (which cannot last more than 18 months).
- The audit report of the investee token and any smart contracts built into the project.
- Burning and distribution plan. The token can be distributed daily, weekly, biweekly, and monthly. Also, the vesting of the investee token takes place according to the disbursement rate proposed by the protocol. The disbursement amount is also used to convert to the CULT token, after which 50% of the tokens are burned and the remaining 50% are distributed among The Many.
Cult DAO Staking
As we said, there are two types of token holders in the Cult DAO staking - Guardians (who propose projects but do not have voting rights) and The Many (stakers who make a decision).
When adding CULT to the staking pool, users receive a dCULT token. While the CULT token is a utility token of the project and is used for transfers, payment of transaction fees, and staking, dCULT displays the proportion of the CULT staked. An important addition is that dCULT cannot be transferred between users’ wallets, but stakers can use it to redeem the initial deposit amount of CULT tokens and all rewards received during the staking period. So, you can only earn dCULT by staking CULT.
RVLT Token
Revolt 2 Earn (RVLT) is the first Cult DAO token that was launched on the Polygon network. Since CULT is working to fund protocols that help achieve decentralization, RVLT is trying to help and reward The Many, as their goals are the same.
The project's founder wanted to turn the maintenance, participation, and promotion of the Cult ecosystem into a full-fledged work with the RVLT token as a “salary,” since the RVLT economic model is like the CULT one. However, the difference is that CULT is a reward token for revolutionary proposals, while RVLT rewards individual revolts.
How to Submit the Revolt Proposals?
To submit the revolt proposals, users must add RVLT to the staking pool, after which they will receive uRVLT tokens displaying their share. uRVLT holders receive 25% of each approved individual revolt proposal. A feature of the system is the CULTmanders, which have been specifically designed to manage individual revolt proposals. CULTmanders is a group of 490 randomly selected RVLT stakers who vote on the approval of individual revolt actions and are selected once every 15 days. They receive voting power and a 5% reward, which is evenly distributed among all CULTmanders for their activity.
How Are the Rewards of RVLT Distributed?
- 40% goes to finance individual revolts.
- 25% is distributed among the stakers based on their share in the pool.
- 25% is burned.
- 5% is sent to the multi-sig wallet for further purchase and immediate burning of CULT.
- 5% is equally distributed among CULTmanders.
Where to Buy Cult DAO?
If you do not know how to buy CULT DAO and what to use, then you can go to several Decentralized Exchanges (DEX) to choose from.
Cult DAO Benefits
The main advantage of this ambitious, recently existing project on the market is that it created the world's first fully decentralized CULT token. Moreover, the organization sponsors revolutionary thinkers who also oppose decentralization and offer solutions to the problems of the current financial system. However, what makes Cult DAO crypto special?
- Sustainability. The decentralized autonomous organization governance model implies that no one, including the creators, stakers, or regulators, can interfere with the life of the project. Smart token contracts are also immutable and cannot be edited. Also, the protocol has its treasury that is gradually filled by collecting transaction fees.
- Hyper deflationary. The creators of the project have implemented burning because they understand the importance of healthy price growth. Thus, the total supply of CULT crypto gradually decreases, which creates a price increase. Moreover, CULT staking users also remove tokens from the circulating supply, which increases their price.
- Justice. The creators of the project transferred control to the DAO and took care of a fair financing arrangement, which means even large token holders cannot participate in the voting (excluding sole influence and unfair voting).
Cult DAO Price Prediction
Even though cryptocurrency price predictions can often turn out to be wrong, several reputable websites rate the long-term prospects for CULT crypto as stable. For example, CryptoPredictions.com suggests that by July 2023 the market value will be 0.00003390. However, at the same time, another site specializing in cryptocurrencies DigitalCoinPrice.com believes that by 2023 the price of CULT will be $0.0000231. In addition, this site predicts that the price will fall and rise until 2026, after which the token will begin to rise significantly.
However, even though the general trend of CULT coin indicates its further growth, one should be prepared to take risks and continue to study the market, paying attention to the long-term prospects.
Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.