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Decentralization, this succinct idea presented by the new blockchain technology a few years ago now. An organization without control, without a central entity, open and public. Ultimately much more difficult to implement than it seems. Government authorities crack down as Uniswap episode unfolds example is not an isolated case. Will the blockchain community ever achieve full decentralization? Hard to say, but Bitcoin’s proposal is already a step forward. The network is decentralized, if some miners stop working then the asset may lose value. Hash rates, difficulty of algorithms may vary, but no one can stop or ban it. The Cult DAO project offers a totally decentralized solution with an economic model and guardians to succeed in its mission.
Cult is perhaps the example of a real DAO (Decentralized Autonomous Organization). Based on a movement for freedom of expression, let’s discover in detail this project which has not finished making people talk. What is the Cult project for? How does the DAO work?
The vision of the project
In the white paper, the founder of the project highlights the misdeeds of centralization and power. People would more often follow the dictatorship, work and sleep than live. Moreover, the white paper quotes a certain Mario Savio, who was an American activist.
He was an important member of the organization “Free Speech Movement”, a movement for the freedom of expression, created in 1964 – 1965 by students.
” CULT serves to hasten the collapse of the old financial system, to end the tyranny of sovereign nations and central banks. The current financial system serves to keep people poor, a society built on debt needs inflation to function, and inflation serves to rob the poor and allow them never to catch up. “. Can we read in the white paper of the project.
A project that wants to be totally out of control, for everyone in order to wake up the inhabitants of planet Earth. Distributing power fairly can be a realistic goal if people want to be part of it.
The Cult DAO project
The presentation video of the project was posted on February 3 via Twitter:
Once launched, no way to stop Cult, the exchange of the CULT token will fill the treasury. As long as there are proposals there will be a constant flow of funding. The purpose of CULT is to empower and fund those who build and contribute to the decentralized future.
Today’s society is built in such a way that it is difficult to set up such a system. Difficult to leave the societal, economic norms and all these rules that surround us. The project aims to finance those who are ready to break the chains and who wish to take part in a change of the world.
A proposal to improve the protocol can only be made by the 50 guardians, they must monitor the proposals put forward. Guardians are the 50 users who hold the most CULT tokens. But be careful, they cannot vote and therefore cannot be totally corrupt in their decisions. All proposals must meet these criteria:
- Fight against centralization
- Advance the cause of decentralization
- Benefit directly from a noble cause
Submissions can come from anywhere as long as they follow the guidelines. The Cult project leaves the decisions and the nature of the projects put forward to the guardians and the community.
Totally decentralized, Cult DAO and its funding process never stop. As long as there are users transacting with the CULT token, custodians making proposals and validators voting then Cult DAO can exist. The project will still be able to fund revolutionaries, new ideas and decentralization.
The CULT cryptocurrency
CULT is the cryptocurrency of the Cult DAO ecosystem. Liquid and exchangeable, the transactions carried out within the Cult project will always contribute to increasing the cash flow of the protocol. A collection of 0.4% will be made on all CULT transactions and will make it possible to finance investments in decentralized technologies.
Moreover, the project announced on February 4 the official launch of its staking:
The Cult platform allows to realize the staking. Once staked, the user will receive dCULT tokens as collateral for their deposit. It is the proof-of-stake token of the Cult network. The user can redeem at any time against the amount originally deposited by the user.
If the user wants to vote or receive rewards, they must have staked tokens. However, to use the CULT network there is no need to deposit staking each transaction advances the project and each burn of token decreases the circulating supply. the burn also increases the rarity. Let’s discover the economic plan of the Cult project.
The economic diagram of the Cult DAO project
- Users transact and trade with the CULT protocol token. Each transaction has a 0.4% fee.
- This tax will support Cult DAO’s cash fund. The value accumulates until it reaches a value in USD which corresponds respectively to the market value of 15.5 ETH.
- As stated previously, staking the CULT token makes it possible to obtain dCULT. The 50 wallets that hold the most tokens form the guardian group.
- The custodians are the only ones to validate project proposals to the DAO. They cannot vote, but they must ensure that each proposal meets the criteria put in place by the DAO.
- Proposals can come from anywhere as long as they meet the criteria. The entire community will vote for all accepted proposals.
- A proposal must contain: the total supply of token associated with the protocol, the percentage of the total supply offered in exchange for an investment of 13 ETH, the economics of the token, the audit of this token and of any contract s there are, the burn and the dissemination plan.
- The map of burn and distribution as well as the acquisition schedule for the issuing protocol. For an example, let’s use the ABC DAO project whose acquisition schedule cannot exceed 18 months.
- ABC DAO pledges 1.2% of its ABC token acquired once a month over 12 months. The company will swap 0.1% of its supply (1.2% over 12 months) of ABC for the CULT token. ABC DAO then sends half of the CULT to a wallet burn and the other half remunerates dCULT token holders.
- If a proposal is approved and the value reaches 15.5 ETH then it will directly send 13 ETH to the wallet address of the proposal and 2.5 ETH will be burned.
- If a proposal is not approved, the CULT will continue to grow beyond the level of 15.5ETH and will be automatically sent as soon as the proposal is validated.
A project that highlights decentralization, Cult offers the opportunity for anyone to propose innovative solutions. The DAO works alone and thanks to the 50 guardians who have the most CULT tokens. The treasury system makes it possible to raise funds on a recurring basis thanks to the exchanges carried out within the network. Each transaction will incur a 0.4% tax. The goal is to reach a threshold of 15.5 ETH which will be issued if a proposal has been selected by the community.
Supported by thestakingthe project makes it possible to generate income thanks to transactions, but also to the success of the projects voted upstream.
A great achievement that allows anyone from anywhere to suggest improvements and new projects. If the community follows the idea put forward then the investment will be available to implement it. Cult is surely the project that today offers the opportunity for total decentralization.
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