"Never underestimate the potential of a project, whether it is from its model design or its performance in the secondary market."
The money-making effect of the secondary market is the biggest driving force for market participants to have a deep understanding of the project. The surge in the secondary market has led more people to turn from simple token characters to the project itself and study the logic of the project.
In the past week, CULT, the token of CULTDAO, has increased by more than 19,000% in the secondary market, becoming another project that has attracted much attention after STEPN.
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01. What is CULTDAO?
CULTDAO, the direct translation is "cult DAO", but here "CULT" can be understood as "the belief in one thing to the point of insanity". So what does CULTDAO believe in to the point of insanity? It is the spirit of decentralization.
CULTDAO has a firm and crazy belief in decentralization. "Fight against Centralization" is CULTDAO's creed. The vision of CULTDAO is to promote and help build and promote decentralized people or organizations, freeing them from centralized social, economic or other constraints.
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02. How does CULTDAO work?
CULTDAO has established an original economic model around supporting project investment to combat centralization, thereby promoting and developing decentralization.
CULTDAO issues the token CULT, pledge CULT to obtain the pledge certificate dCULT, the top 50 dCULT holders become "The Guardians" (guardians), they have the right to propose DAO, but the guardians only have the right to propose but not to the proposal Voting rights.
"The Many", that is, dCULT holders (dCULT is the pledge certificate generated by staking CULT) have voting rights for proposals but no proposal rights.
Under normal circumstances, the guardian initiates a vote, and dCULT holders vote to decide whether the project can be invested, and if it is rejected, it will be terminated. If the proposal is passed, 13 ETH will be allocated from the DAO treasury for investment.
The DAO treasury is funded from a 0.4% tax on each transaction of the token CULT. When the treasury collects 15.5 ETH and there is a proposal that has been voted, the 15.5 ETH will be divided into two parts, of which CULT worth 2.5 ETH will be destroyed in the black hole wallet, and the other 13 ETH will be invested in Proposal approved items.
After the invested project needs to issue tokens, the invested project party needs to sell the pre-agreed project tokens and exchange them for CULT. 50% of the CULT will go into the black hole wallet, and the other 50% of the CULT will be distributed to CULT stakers as rewards.
03. How does the CULTDAO proposal work?
CULTDAO's community governance revolves around proposals, guardians have the right to propose proposals, and pledgers have voting rights. Whether the proposal is passed or not mainly depends on whether the project follows the spirit of decentralization.
Guardians can submit proposals on the official website proposal page. If they are not the top 50 dCULT holders, they need to hire guardians to help and submit proposals on behalf of them.
During the submission process, the proposal submitted by the guardian should include the following main contents:
1. Total supply of investee protocol tokens
3. Token economics
3. Token economics
4. Audit of tokens and any contracts (if established)
5. Combustion and distribution plan
For CULT pledgers, they have the right to vote on proposals and have the right to delegate their voting rights to others.
When the proposal is voted through, the proposal will be placed in the queue of the smart contract that pays for the investment. After a 2-hour queuing period, if the proposal is the next one in the queue and the treasury is sufficient, 13 ETH will be paid to the invested party project wallet.
At this time, the remaining CULT worth 2.5 ETH will be sent to a black hole wallet and burned forever, and successful proposals will be moved to the Closed Proposals page.
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04. What are the characteristics of CULTDAO?
From the perspective of CULTDAO's operating model, CULTDAO is a decentralized venture capital DAO. Find and invest in projects with the spirit of decentralization to fight against centralized monopoly and accelerate the construction of decentralization.
From the perspective of project operation, CULTDAO mainly has the following highlights:
1. Completely decentralized. Investment behavior is executed by an unmodifiable smart contract without any centralized control and intervention. That is, as long as the treasury has 15.5 ETH and there are two conditions that have been voted through, the project investment will be completed automatically.
2. Token burning mechanism. By setting up a burning mechanism, the deflation of tokens is guaranteed. For each investment in a project, 2.5ETH of CULT tokens will be destroyed, and at the same time, 50% of the CULT tokens exchanged by the project party for CULT tokens will also be destroyed according to the pre-agreed agreement.
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05. About the status quo and some views of CULTDAO
1. Team background and founder
CULTDAO is an anonymous project. According to the information of the famous audit agency SOLIDPROOF, the project founder has completed KYC, and SOLIDPROOF was shocked by the identity of the project founder in its official tweet, saying that it is a very well-known founder of cryptocurrency.
2. Market and project operation
As of writing, according to the official website of CULTDAO, the current price of CULT is 0.00006626 USD, the total market value is 144,238,036 USD, the total lock-up value is 117,643,636 USD, the treasury has 1765.972 ETH, and 26 ETH have been sent so far, indicating that there are already two proposals Already passed and invested. 1,683,833,838,138 CULT have been burned and destroyed.
3. Fairness and efficiency of CULTDAO
As a decentralized organization, DAO, like all organizations, has to face the problems of efficiency and fairness in the operation process of the organization. A core team or centralized power is conducive to the operation of the organization, but it is not decentralized enough, and too decentralized power will lead to a decrease in efficiency.
In the design of CULTDAO, proposal rights and voting rights are separated to ensure that guardians do not make project proposals for personal reasons, and as pledgers, they have sufficient voting rights.
The setting of the guardian can drive the progress of the CULTDAO proposal, which is conducive to improving efficiency, and at the same time, the voting rights distributed to the pledgers also ensure fairness. This is an ideal DAO operating mechanism, which better balances fairness and efficiency.
4. Interest-related games
Ideally, guardians with proposal rights need to adhere to the principle of "sufficient decentralization" and strictly control the project. Stakers also need to make rational judgments and vote.
But no matter as a staker with voting rights or as a guardian with proposals, they are all stakers of CULT. So the rewards returned by invested projects will be directly related to them. In this way, the reward distribution and unlocking of the proposed project may become the standard for guardians to vote and pledgers to vote, which may affect the fairness of the proposal. But at the same time, because the reward is directly related to the interests of guardians and pledgers, this will make them more prudent in making decisions.
But at the same time, the value investment of 13 ETH is not a very large scale for the project, so to a certain extent, the project itself will not give too much benefit because of this investment and strive for more proposals possibility.
5. Possible risks
"" On CULTDAO's official website FAQ, the official answer to the question "What measures have been taken to ensure the security of my cryptocurrency" is, "Our contracts and tokens have been fully audited, liquidity is locked, and keys are burned , the contract cannot be upgraded."
However, the author checks its contract address on ave.ai, and the risk detection is: "The contract is an agency contract, and there may be potential upgrade and replacement risks."
Official website: https://zebra-vc.com
Twitter: https://twitter.com/ZebraVentures
