Bitcasino World Cup Raffle Campaign - Win the VIP World Football Championship Experience
2.3 k

Cult DAO Review – Building Towards a Decentralized Future

Cult DAO is a community-driven autonomous organization seeking to contribute towards a decentralized future. The project aims to constantly fill and send out its DAO treasury and fund investments in various technologies building tomorrow’s decentralized world.

This Cult DAO review looks closer at the project’s features and long-term plans. Read on to discover how to take part in this initiative!

What is Cult DAO?

Cult DAO is a blockchain-based, non-governmental and non-profit organization. Its purpose is to empower those working towards a decentralized world. To this end, it plans to fund projects or investees that accelerate the mainstream adoption of decentralized applications. 

Those seeking funding from Cult DAO must share the team’s objectives, such as:

  • Fight against centralization.
  • Further the cause of decentralization.
  • Directly benefit a noble cause.

The protocol has a tradable and liquid token, CULT, which users need to access most of the platform’s features. Every CULT transaction comes with a 0.4% tax, which goes towards the DAO treasury. In time, the funds from the treasury will help fund investments in decentralized technologies.

Additionally, the protocol has a Proof-of-Stake token, dCULT. Users staking their CULT tokens into the DAO receive dCULT, which they can swap back at any time. In return, they receive the amount of staked CULT tokens plus any rewards available at that specific time.

Unlike other DeFi projects, Cult DAO does not operate under the control of one or a group of entities. Furthermore, the team behind the project cannot change it, access its liquidity, or edit its smart contracts. Centralized organizations, such as the government, cannot stop, regulate or interfere with its activity. Instead, it is the entire DAO community that can only dictate what is funded .

How Cult DAO Works

Cult DAO divides its users into two categories depending on how many CULT tokens they have staked. For instance, the Top-50 CULT stakers (dCULT owners) are the protocol’s “Guardians.” Meanwhile, the rest of the users go by the name The Many.

The Guardians have the crucial task of safeguarding the proposals that The Many bring to them and vote on. They have a larger token share. However, they cannot influence and vote the proposals they put before The Many.

According to the Cult DAO Manifesto, the protocol should work as follows:

Users interact and trade with the CULT token within the DAO. The protocol only takes a 0.4% tax on each transaction. As a result, almost all transactions should clear on standard DEX slippage settings.

The protocol accumulates the taxes in the DAO treasury. There, it builds up to a USD value matching the market value of 15.5 Ethereum.

CULT holders can stake their tokens for dCULT. The top-50 dCULT holders become guardians and the only users who can table proposals. All the dCULT holders below them are The Many, and they can vote on what the Guardians propose.

The proposals can come from almost anyone, including community members, VCs, and users from anywhere across the political spectrum. However, each proposal must abide by the DAO’s criteria to fight against centralization. They must also contain the following:

  • The total supply of the investee protocol token
  • A percentage of the total supply as a return offer for the 13 ETH investment
  • The tokenomics
  • An audit of the token and any contracts, if the proposal contains them
  • The burn and distribution plan, which is the vesting schedule for the investee protocols’ token.


Here’s a hypothetical example of how tabling a proposal in Cult DAO will work. 

Suppose a protocol, e.g. ABC DAO, promises 1.2% of its $ABC token. The vesting schedule can be daily, weekly, fortnightly, or monthly, but it cannot exceed 18 months. In our case, ABC DAO chooses a vesting schedule of once a month for 12 months.

On repayment, the investee company swaps 0.1% of its supply (1.2% over 12 months) of $ABC for $CULT. ABC DAO then sends half of the CULT to a burn wallet. Next, it sends the other half to the DAO, reaching the dCULT holders.

A proposal needs The Many’s approval and reach the 15.5 ETH value to pass. Then, it automatically sends 13 ETH to the proposal wallet address and 2.5 ETH to a burn wallet.

If the proposal does not obtain approval, the CULT will continue to build up past the 15.5 ETH level. However, it will auto-send once a proposal passes approval.

Burning and Redistribution

Cult DAO follows a hyper-deflationary economic model. This helps the CULT token increase in value as its circulating supply drops. Also, it prevents the Cult community from making the same mistakes of the centralized economic systems of the past.

The protocol burns 10,000 tokens out of every 60,000 it raises. Also, it has a half-and-half redistribution model that implies 50% burning and 50% proportional distribution to the dCULT holders. This happens whenever an investee company sells its tokens for CULT.

Lastly, CULT DAO claims its smart contracts and token have passed audits and burned their keys. Also, the protocol’s liquidity is under lock for 265 years, and its contracts are not upgradeable.

The project’s staking app is available here.

Final Thoughts

Like many DeFi projects, Cult DAO steers in the opposite direction of traditional centralized institutions. However, it takes the path towards a decentralized world a step further. Its goal to fund and support those who further the cause of decentralization is rare, if not unique. We will follow its development closely and see how quickly it can grow that much-needed CULT community.

Cult DAO live price
Cult DAO
price change

Cult DAO is available here: | Website | Twitter | Telegram | Medium | Discord

Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Furthermore, Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site. Trading cryptocurrencies is a highly risky activity that can lead to major losses. You should consult your financial advisor before making any decision. Learn More

Stay up to date with our latest articles

More posts

JP Morgan Says BTC Selloff Might Worsen if Miners Continue Offloading

The increasing pressure for Bitcoin (BTC) miners to sell their holdings could further exacerbate the bear market. American multinational investment bank JPMorgan Chase strategists said in a note on June 24. Led by Nikolaos Panigirtzoglou, the strategists believe miners are selling their BTC holdings to cover operations costs. According to the strategists, Offloading of Bitcoins by miners, in order to meet ongoing costs or to delever, could continue into Q3 if their profitability fails to improve. Panigirtzoglou and his team…

Coinrule Review – A Platform Simplifying Crypto Trading Bots

In its basic form, trading includes buying assets at a low price and then selling it at a higher price. However, trade has changed over the years. Derivatives are only one illustration of how the notion of trading has evolved in recent years. Cryptocurrencies have shaken the traditional financial markets, proposing a new way to create wealth for investors. Automated trading is a field that has grown in popularity recently, and crypto enthusiasts are discovering its potential. Today we will…

Goldman Sachs is Raising 2 Billion Dollars to Buy Celsius’s Assets: Report

Banking giant Goldman Sachs is reportedly raising $2 billion to buy the assets of Celsius – the troubled crypto lending platform. The news comes from two sources familiar with the matter, according to a report from CoinDesk. The bank is prepared to buy the lending firm’s assets at a steep discount in the event of a bankruptcy, using commitments from investors. The move is part of Goldman’s effort to draw commitments and gauge interest from web 3 funds, according to…

Electricity Consumption in Bitcoin Mining Industry Plunges 36% Amid Bear Market

The electricity consumption of Bitcoin mining companies has plunged significantly in the wake of the intensifying crypto winter. Crypto analyst Digiconomist revealed this news in its Energy Consumption Indices for Bitcoin (BTC) and Ethereum (ETH). According to the BTC index, the electricity consumption of Proof-of-Work (PoW) miners has plunged nearly 36% in under two weeks. Specifically, BTC’s energy use fell from 204.50 TWh on June 11 to 131.68 TWh on June 23. Despite declining by over a third, BTC’s energy…

Coinbase Launches First Crypto Derivatives Product for Retail Traders

Coinbase Derivatives Exchange, formerly FairX, is preparing to launch its first listed crypto derivatives product on June 27. Coinbase announced on June 24, noting that the product is dubbed Nano Bitcoin Futures (BIT). The exchange has lowered the barrier to entry by setting the size of eachBIT contract to 0.01 Bitcoin (BTC). According to the announcement, BIT futures will be available for trading through several intermediaries. These include brokerage firms like EdgeClear, Ironbeam, NinjaTrader, Optimus Futures, Stage 5, and Tradovate.…

Harmony’s Horizon Bridge Suffers a 100M Exploit in Latest DeFi Attack

The Horizon bridge to the Harmony blockchain has lost $100 million worth of altcoins to a malicious actor. Harmony announced today morning via Twitter. [embed][/embed]   Following a brief investigation, the Harmony team pinpointed the attacker’s Ethereum address. After compromising the Horizon bridge, the attacker transferred different tokens to their wallet, with the first transfer coming a little over 20 hours ago. According to Harmony, this exploit did not impact the trustless Bitcoin (BTC) bridge. The protocol claims this bridge’s…

01node Review – A Platform Letting Traders Stake Crypto in Minutes

The process of staking cryptocurrency entails devoting your crypto assets to supporting and confirming a blockchain network. This method of earning passive income in the crypto world has appealed to many investors over the years. We are observing a quick shift from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) world. In this scenario, new projects are building a fortune on staking services. Today our review will look into 01node, a project staking fans know very well. About 01node In addition…

Blockdaemon Review – A Platform Targeting Scalability Through Crypto Staking Solutions

Complex networks across various clouds and data centers are manageable without the need for expensive and time-consuming overhead with Blockdaemon.  The next step in blockchain innovation is Proof-of-Stake (PoS). PoS provides the same security assurances as Bitcoin and other Proof-of-Work (PoW) networks at a fraction of the energy cost.  Blockdaemon is a popular choice for anyone wishing to merge the benefits of modern staking with scalability possibilities. Our guide will provide more details on this system, highlighting the critical features…

Solana Launches First Web3 Android Smartphone, Saga

Solana Mobile, a subsidiary of Solana Labs, announced the launch of its Android smartphone, Saga on Thursday. The flagship phone, which debuted at a New York event, has unique functionalities based on the Solana blockchain. It allows users to carry out transactions in web3, including managing their tokens and NFTs.  Saga sets a new standard for the web3 experience on mobile,” Anatoly Yakovenko, Solana’s co-founder, said at the event. Yakovenko pointed out that Saga was created to meet the steady…

Voyager Lowers its Daily Withdrawal Limit Following 3AC Debacle

Cryptocurrency brokerage platform Voyager Digital recently reduced its daily withdrawal limit down to $10,000. That’s a 60% drop from its previous $25,000 limit, prior to its financial problems relating to Three Arrow Capital (3AC). Voyager published its new withdrawal limit on its site in an update on Wednesday. It states that $10,000 are permitted for withdrawal within a 24-hour period, with a maximum of 20 withdrawals. The news follows Voyager’s worrying reveal that it had over $700 million in exposure…