Jade Protocol Community Member Proposes Liquidating $31M Treasury

Jade Protocol Faces Calls To Liquidate

Jade Protocol is an investment group specializing in sourcing early-stage crypto deals. The protocol’s native token is the JADE token, which trades on Avalanche and BSC. The token also allows users to access the larger Jade Protocol community. On Wednesday, the protocol faced calls to liquidate after a longtime member proposed that the decentralized autonomous organization (DAO) liquidate its $31 million treasury and begin issuing redemptions to token holders. Under the “Dissolve DAO” call-to-action, the JADE token would become a cashout.

A Risk To All Token Holders

The proposal was put forward on the 25th of September by a member with the screen name VampireOfCrypto. The proposal cited an extremely unfavorable regulatory climate that was significantly slowing down Jade Protocol’s progress. The regulatory environment is also putting all DAOs in peril. Decentralized autonomous organizations, or DAOs, are crypto collectives, with token holders having a say in the governance and development of the associated protocol.

The investor further added that numerous legal questions and a brutal crypto winter have combined to freeze out crypto trading volume. It has also stymied Jade’s deal flow. The investor had joined Jade Protocol’s Discord server in July 2022, stated that the DAO poses a major investment risk to all token holders, and added,

“Distributing all treasury funds back to all token holders without delay is the ultimate win-win situation for everyone.”

Latest Project To Face Pressure From Investors

Jade protocol has become the latest crypto project to face considerable pressure from its investors to shut down. Over the past year, a group of activist investors have led calls for rage quits and treasury redemptions in many DAOs. This was seen in Nouns DAO when the NFT experiment lost over half of its $50 million treasury to its own disgruntled investors. That fork resulted from months

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Author: Amara Khatri

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