2.9 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 or 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

Nexo Makes the Case for Why it Won’t Go Down Like BlockFi

The crypto borrowing and lending platform Nexo recently provided transparency into exactly how its business makes money. Its lengthy breakdown follows the collapse of numerous high-profile crypto lending firms that were overexposed to defunct projects and businesses.  Nexo’s Business Model As Nexo explained in a Twitter thread on Monday, Nexo’s primary business strategy is to facilitate collateralized credit. Its core services include crypto collateralized loans, interest-bearing crypto accounts, and spot, futures, and options trading.  Through its Earn product (crypto interest…

Crypto Lender BlockFi Files for Bankruptcy

According to a recent press release, crypto lending firm BlockFi has filed for chapter 11 bankruptcy protection. The company predictably began to battle liquidity issues in the wake of FTX’s monumental crash. BlockFi Hopes to Restructure The lender submitted its application for bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey alongside 8 affiliated companies. BlockFi's goal is reportedly to bring operations back to steady ground. Chapter 11 of the Bankruptcy Code typically allows for…

Vave Casino and Betting – Comfortable Crypto Gaming in Complete Anonymity

Vave, a modern crypto casino and sports betting brand, has officially launched, allowing players to gamble with crypto and fiat on numerous casino games and sports events. The platform also offers live casino experiences and exclusive VIP services in a comfortable and anonymous setting. Vave aims to become the powerhouse of anonymous crypto gambling on a global scale. To this end, it focuses on attracting a worldwide audience of crypto enthusiasts seeking top-quality entertainment in a secure and engaging environment.…

WMA: Most Assets Record Minor Gains but Bitcoin Stagnates

Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $842 billion. Bitcoin is trading at around the same value as last week, $16,500. Ethereum gained more than 3% over the past seven days. XRP increased by nearly 8% this past week. Almost all altcoins and Metaverse projects are trading in the green. The DeFi sector decreased the total value protocols (TVL) to around…

Binance Releases its Proof of Reserves — But is it Enough?

Binance released its highly anticipated proof of reserves (PoR) on Friday, providing blockchain-based evidence for the Bitcoin on its books.  However, many in the crypto community question Binance’s approach. Also, they aren’t fully sure they have the transparency they’re looking for. The Move to Proof of Reserves As Binance explained in its announcement, the exchange’s transparency system will add multiple tokens and networks within the next two weeks. For now, it solely validates its Bitcoin holdings.  The company’s initial audit…

Elon Musk Blasts Legacy Media’s ‘Gingerly’ SBF Coverage

While busy managing Twitter, Elon Musk has still been keeping up with the drama surrounding FTX and its former CEO, Sam Bankman-Fried (SBF). The billionaire has written numerous tweets this week signaling his distaste for SBF and media outlets covering him uncritically.  Musk began by ripping into the Wall Street Journal on Monday. The outlet published an opinion piece claiming that FTX ultimately failed “because Sam Bankman-Fried’s supporters lost confidence in him.” “Yeah umm … that is definitely not the…

Singapore Launches Probe into Crypto Lender Hodlnaut

In a recent publication, the Singapore police force revealed that they are looking into crypto lending platform Hodlnaut. The agency’s Commercial Affairs Department is reportedly handling the investigation into accusations of cheating and fraud among the DeFi lender's leadership. Users File Complaints with the Police According to the release, several accusatory reports surrounding the platform have made their way to the police since August. These allegations claim that the company’s leadership had shared false data regarding its exposure to an…

Vitalik Calls Out Bitcoiners for Supporting El Salvador’s ‘Undemocratic” Government

Ethereum co-founder Vitalik Buterin spoke on Saturday about the crypto community’s tendency to enable and welcome nefarious actors.  He named El Salvador President Nayib Bukele as an example, accusing enthusiastic Bitcoiners of overlooking his “not democratic government.” Enabling Bad Actors In an interview with The Straits Times, Buterin discussed the numerous “small countries” whose governments are experimenting with crypto adoption. When asked whether such efforts were safe for the countries involved, the developer said it depends on how these efforts…

El Salvador Congress Presented With Legal Framework for Non-Bitcoin Digital Assets

El Salvador’s government has presented a bill to congress for regulating cryptocurrencies and related assets beyond just Bitcoin.  The legislation brings the Central American country a step closer to its goal of issuing blockchain-based Bitcoin-bonds. The Digital Securities Law The “Digital Asset Issuance Law” was presented by a spokesperson for the Salvadoran presidency late Tuesday. The legislation seeks to establish a dedicated crypto commission and Bitcoin Fund Management Agency for overseeing crypto debt sales. Tether CTO Paolo Ardoino said on…

Hacker Drains Fenbushi Founder’s Wallet of $42M

Bo Shen, co-founder of venture capital firm Fenbushi Capital, shared via Twitter on Wednesday that his wallet had suffered an attack. A malicious actor carted off assets worth $42 million from the Chinese investor’s personal holdings on November 10. Hacker Gains Access Via Compromised Seed Phrase Per the tweet, the stolen funds included 38M USDC. Shen made sure to clarify in his post that the hack was isolated to his own accounts and Fenbushi wallets remained unaffected.  https://twitter.com/boshen1011/status/1595265219898789888?s=20  Blockchain security…