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Summary of Cult DAO
Key Points
- CULT is a tradable token that contributes to the DAO treasury through a 0.4% collection on all transactions.
- dCULT is the “proof of stake token” for CULT, earned by staking CULT into the DAO.
- Cult DAO is decentralized and cannot be stopped as long as there are transactions, proposals, and voting.
- Proposals can only be put forward by the top 50 holders (Guardians), who cannot vote.
- Proposals must conform to three criteria: Fight Against Centralisation, Further the Cause of Decentralisation, and Directly Benefit a Noble Cause.
Proposal Requirements</h
About Cult DAO: Empowering a Decentralized Future
CULT is the tradable and liquid token of CULT DAO, with every transaction contributing to the protocol by incrementally filling the DAO treasury, thereby funding investments in decentralized technologies. This is facilitated by a 0.4% collection on all CULT transactions, ensuring a steady influx of resources.
Upon being staked into the Cult DAO, CULT is transformed into dCULT, effectively serving as the “proof of stake token” for CULT. When you stake your CULT into the DAO, you receive dCULT in return, which can be exchanged at any time for the original amount of CULT you staked, plus any rewards accrued to the DAO during the period you held dCULT.
Cult DAO and its funding mechanism operate entirely decentralized, rendering it impervious to cessation. As long as transactions involving CULT persist, Guardians continue to submit proposals, and users exercise their voting rights, Cult DAO will persist in empowering revolutionaries, decentralization advocates, and those who dare to challenge the status quo, ultimately breaking free from societal shackles.
A proposal can only be initiated by the esteemed Guardians, comprising the top 50 holders. Notably, Guardians are exempt from voting, thereby ensuring their decisions remain impartial and untainted by personal biases. Furthermore, these proposals must align with at least one or a majority of the following three stringent criteria:
● Champion the Fight Against Centralisation, ● Advance the Decentralisation Movement ●
Directly Contribute to a Worthy Cause.
These proposals can emanate from diverse sources, including venture capitalists, community members, politicians, anarchists, socialists, and individuals from the left or right wing, as long as they adhere to the aforementioned guidance and are submitted by a Guardian. Any proposal that meets these criteria can be put to a vote by the Many. The proposals submitted must incorporate the following essential elements;
1) The aggregate quantity of the investee protocol token in circulation; 2) the proportion of the total supply allocated in exchange for a 13 ETH investment; 3) the token’s economic model and underlying dynamics; 4) a comprehensive audit of the token and any associated smart contracts; 5) the strategy for token burning and distribution.
The burn and distribution plan outlines the vesting schedule for the investee protocol’s token. In this example, let’s consider a fictional protocol, ABC DAO. The vesting schedule can be structured on a daily, weekly, fortnightly, or monthly basis, with a maximum vesting period of 18 months.
Let’s say ABC DAO pledges 1.2% of its $ABC token, with vesting periods of one month for 12 consecutive months. On the repayment date, rather than transferring the tokens of the investee protocol, as a traditionally VC-funded protocol would, the investee company instead exchanges 0.1% of its supply (equivalent to 1.2% over 12 months) of $ABC for $CULT. Subsequently, ABC DAO directs half of the $CULT to a burn wallet and allocates the remaining half to the DAO, which is then distributed to dCULT holders.
CULT seeks to accelerate the demise of the antiquated financial system, thereby dismantling the oppressive regimes of sovereign nations and central banks. The prevailing financial paradigm is designed to perpetuate poverty, as a debt-based society relies on inflation to function, which, in turn, serves to disenfranchise the impoverished and cement the dominance of the ruling elite.