CultDAO is a community-driven + meme-style investment DAO (can be understood as a decentralized fund management Project), initially launched by Mr. O'Modulus in early 2022.

CultDAO provides 13 ETH start-up funds to projects submitted and passed community voting.

Their investment ideas are often related to revolutionary thinkers and decentralization advocates, and more about promoting community freedom and decentralization chemical revolution. Regarding this spirit and culture, you can experience it in their manifesto: CultDAO Manifesto

How does CultDAO work?

The mechanism of CultDAO is very simple. It has four basic elements:

• $CULT token. It is a tradable functional token in CultDAO. It mainly has two functions:
  • Every on-chain transaction and transfer of $CULT will automatically be taxed at 0.4% of the transaction amount (in the form of $CULT) and directly collected into the treasury.
  • $CULT can be pledged, and pledgers will receive voting rights and rewards. (The top 50 pledgers will have proposal rights but no voting rights)
• DAO Treasury. The treasury is responsible for allocating funds to different invested projects. All transaction taxes will be transferred to the state treasury. For every 15.5 ETH of $CULT coins raised, $CULT worth 2.5 ETH will be automatically destroyed, and the remaining 13 ETH of $CULT will be distributed to the invested projects as start-up funds. For more details on proposals and projects, CultDAO officially provides the Dune Analytics dashboard.
• $dDULT is the equity note certificate after $CULT is pledged, which is the proof of your pledged $CULT. Only those who hold dCULT have the corresponding number of voting rights. When you stake your $CULT to CultDAO's staking contract, you will get a corresponding proportion of $dCULT, which supports the redemption of the deposited $CULT at any time, plus all rewards during the time period you own $dCULT.
  • Please note that $dCULT is non-transferable and cannot be obtained in any other way other than staking CULT.
• The Guardians . The top 50 CULT stakers (dCULT owners) are called Guardians. Only guardians can initiate proposals and let other investors vote on whether CultDAO is worth investing in. However, guardians can only initiate proposals and cannot conduct any votes (in case the voting rights are too concentrated). You can find the top 1,000 holders of $CULT here.
  • Note: 21 guardians received the earliest Airdrop from the CultDAO project (all of them are reputable people in the industry). The short position is generally 15.68 billion CULTs. Only in the case of Vitaliks, it is 19.92 billion CULTs (20 billion before tax).

If the proposal's voting result reaches a >50% pass rate, a proposal will be successfully approved and receive $CULT funds worth 13 ETH.

All rewards/income received from successfully approved invested projects will first be converted into CULT tokens (operated by the project itself), and then 50% of these rewards will be distributed to $dCULT holders, and the other 50% You need to enter a burned address directly (burned permanently).

As more proposals are passed, the total supply of CULT should become deflationary. There may be some star projects in return for investment projects. These high-return star projects can attract more people to participate in CultDAO and further increase the demand for CULT.

The mechanism for collecting taxes on on-chain transactions is not conducive to listing on centralized exchanges, because if a large number of CULTs are concentrated in centralized exchanges, it will tend to reduce on-chain transaction behavior, and thus the tax amount. But listing a large CEX is another opportunity to gain more trading volume and exposure. This Tradeoff is a feature of CultDAO. (Maybe they don’t want to go to the exchange)

What can I do in CultDAO?

• Become an early investor in crazy, innovative, decentralized projects.
• Become an innovative project and propose your innovative ideas.

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• What is a DAO?