Cult DAO, a decentralized autonomous organization, has published recent data on its hyper-deflationary token, CULT, which has gained the necessary traction and volume to overcome the initial stage of anonymity.
According to data on Etherscan, the Cult DAO protocol has burned over 1.725 billion CULT tokens in the last two weeks. Cult DAO burned 1,725,774 482 CULT, about 25 ETH, between March 24 to April 8, 2022. This data reportedly shows the power of the CULT token, eliminating any doubt of the token being a joke coin. The data is proof of CULT’s ambition to challenge other cryptocurrencies in the market hierarchy.
During this period, the Cult DAO Treasury accrued 81.496 billion CULT tokens, an equivalent of nearly 130 ETH. Cult DAO takes a 0.4% tax from transactions which it sends automatically to the treasury. Notably, in time these funds should help finance investments in decentralized technologies.
The data also noted that on April 11, more CULT tokens were taken out of circulation more than two days before with twice the volume. The protocol currently has 1.9 trillion staked tokens after burning about 1.567 trillion. It is worth mentioning that Cult DAO burns 10,000 tokens out of every 69,000 raised. The platform also uses a half and half redistribution model that burns half of the tokens, with the rest going towards dCULT holders.
Notably, the increased popularity had led to a steady surge in its treasury volume. The increase in activities takes more tokens from the general circulation into the treasury. As a result, the treasury is filling faster than proposals, sending CULT out this squeezing CULT supply.
However, the massive token movements have not been enough to decelerate the increase in CULT balance within the treasury. On the contrary, the data notes that the treasury volume increased because of the many Cult DAO community members with voting rights.
Cult DAO was created to accelerate the decentralized finance revolution by empowering people with the necessary tools to break away from economic, social, and other norms. The protocol hopes to enable its users to vote on funding for projects focusing on decentralized applications actively.
Experts believe that if the CULT token maintains its current trajectory, the token has the potential to challenge dominant projects in the next five years.