The first ritual of this kind was created in the early nights of the Anarch Revolt by Tzimisce kolduns to break the Blood Bond with their elders. Using Kupala's Fire-Flower to perform the ritual and Lambach Ruthven's potent blood as a catalyst, the kolduns were successful and gave birth to the practice modernly known as Vaulderie.
The modern rite is pretty simple: each member of the pack drips a small amount of Vitae into a cup; a ceremony is performed, and then the blood is shared amongst the pack. The Vaulderie produces a communal, weak blood bond called the vinculum. It generally makes pack members supportive of and loyal to each other, though it does not produce the extreme reactions of a full blood bond.
Without the Vaulderie, the Sabbat would probably collapse under its own weight and dogma — the chaos and anarchy that follows the sect would erode what little organization it has without the loyalty and sympathy created by the rite. Those who refuse the Vaulderie or oppose it are not viewed favorably by other Sabbat. Vampires who refuse to partake of the Vaulderie at least monthly suffer ostracism from the pack at best — and may be destroyed outright at worst.