What is Cult DAO?
Cult Dao (CULT) is a Ethereum built completely decentralized funding mechanism that allows everyone to contribute novel solutions. The DAO operates independently and with the help of the 50 guardians who have the most CULT tokens. The project also has a treasury system that raises funds on a recurrent basis by utilizing network exchanges.
CultDAO gives 13 ETH funds to projects that are submitted and passed the by community voting.
Their investing philosophy often relatives to revolutionary thinkers, decentralization advocators, and more about advancement of the community liberty & decentralized revolution. About this spirit, you can find more in their manifesto: CultDAO manifesto
Who created Cult DAO?
Cult DAO is more like a community-driven meme sponsoring DAO (also a decentralized fund management project) initially launched at the beginning of 2022 by Mr. O’Modulus.
How is Cult DAO work?
The mechanism of CultDAO is simple. It has four basic elements in the game.
- $CULT token
- The DAO Treasury
- $dCULT token
- The Guardians
We will expand each topic from submitting proposals to fund.d
Submitting Proposals for Project Funding
For people to participate, they can submit proposals for financing by Cult DAO. Only the 50 Guardians, the top 50 CULT stakers, can submit suggestions for funding from the protocol, and monitor the recommendations made. Note that Guardians cannot vote.
When making a proposal, all suggestions must satisfy three criteria. First, they must fight against centralization. They should also advance the cause of decentralization, and finally, directly benefit a noble cause. Proposals can come from anyone as long as they follow these rules and a Guardian is the one to put them forward.
Cult DAO and its fundraising method are entirely decentralized. Cult DAO will exist as long as users transact with the CULT token, custodians propose proposals and validators vote. Revolutionaries, fresh ideas, and decentralization will all be funded through the initiative.
CULT Token
CULT is CULT.DAO's tradable and liquid token. Making transactions with CULT will help the protocol by gradually filling the DAO treasury, which will support investments in decentralized technology. It is accomplished with a 0.4 percent collection on all CULT transactions that travel directly to the DAO.
What is dCULT?
dCULT is CULT's "proof of stake token." When users stake their CULT into the DAO, they are granted dCULT, which may be exchanged for the amount of CULT they staked originally.
dCULT is non-transferable and can only be earned by staking CULT. By adding the dCULT contract address to the user's wallet, they can view their balance.
Staking CULT
Staking CULT is the basis of the whole protocol. The top stakers (holders of dCULT) are the Guardians. Meanwhile, the user will receive dCULT tokens as security for their deposit once staked. The user can then redeem at any moment against the amount initially placed by the user.
When a project proposal is accepted, the agreed-upon proportion granted to the DAO is split 50/50. Half of it is burnt, while the other half is transmitted to the DAO and allocated among CULT stakeholders.
To vote or get rewards, the user must have staked tokens. However, to use the CULT network, there is no need to deposit funds for staking. Each transaction advances the project, and each token burn reduces circulation.