Calls for Liquidation of $31M Token Treasury at Jade Protocol
The native cryptocurrency of the crypto club known as Jade Protocol experienced a significant surge recently. This surge came in response to a proposal made by a long-standing member of the decentralized autonomous organization (DAO) to liquidate its substantial $31 million treasury and provide redemptions to token-holders.
Jade Protocol operates as an investment group specializing in early-stage cryptocurrency deals. Its JADE token, traded on the Avalanche and BSC blockchains, currently serves as an entry pass into the community. The recent “Dissolve DAO” call-to-action suggests transforming JADE into a cash-out mechanism.
In the proposal dated September 25, a member using the pseudonym VampireOfCrypto highlighted growing regulatory challenges that are hampering Jade’s progress and posing a threat to all DAOs. DAOs are crypto collectives where token-holders have a say in decision-making.
VampireOfCrypto pointed out that turbulent legal uncertainties and the ongoing crypto market downturn have adversely affected both crypto trading volume and Jade’s deal flow. VampireOfCrypto emphasized the substantial investment risk that the DAO poses to all token holders and advocated for the swift distribution of all treasury funds back to token holders. However, VampireOfCrypto did not provide a response when contacted for comment.
Jade Protocol is the latest crypto project to confront pressure from its investors urging it to cease operations. Over the past year, activist investors have been advocating for “rage quits” and treasury redemptions in several DAOs, asserting that cash-outs are essential to safeguarding investors from struggling DAOs. This movement has received both resistance and profit. Notably, some of these activist investors have also joined Jade, as confirmed in a statement by Jade’s press liaison, Jon Ray, on the Discord server.
Despite this, it appears that the dissolution proposal at Jade is not the result of the actions of these activist investors. Kevin Randleman, a prominent DAO member, expressed frustration over the state of legislation in the crypto space, observing that it is disheartening that one of the most supportive and longstanding members of the community is initiating this proposal. Randleman acknowledged the real challenges facing Jade but emphasized that the community will ultimately determine its future.
Randleman outlined a series of bureaucratic and technical obstacles that must be overcome before redemption can occur. He also proposed the establishment of a $2 million “legal defense fund” to assist core contributors in winding down the DAO if the dissolution proposal gains approval.