One long-time member says the DAO “poses a huge investment risk for all token holders.” That’s why he expresses his opinion that the DAO should be closed down. Meanwhile, interestingly, the corresponding altcoin price went on a moon trip amidst the stagnant market.
Treasury liquidation was requested, altcoin price skyrocketed!
The native token of crypto club Jade Protocol soared on Wednesday after a longtime member suggested that the decentralized autonomous organization (DAO) liquidate its $31 million treasury and refund token holders.
JADE daily price chart. Source: CoinMarketCapJade Protocol is an investment group that sources early-stage crypto deals. The token of the altcoin project is traded on Avalanche and BSC Blockchains. The token is currently the entry ticket to the community. Under the “Dissolve the DAO” call to action issued earlier this week, JADE will instead become a cash outlet.
What is behind the liquidation request?
In his Sept. 25 proposal, a member named VampireOfCrypto referenced the dark regulatory skies that he said were slowing Jade’s progress and endangering entire DAOs, which are crypto collectives where token holders have a say in decision-making. According to the investor who joined Jade’s Discord server in July 2022, regulatory pressure and a brutal crypto winter are pushing ahead. These came together to freeze crypto transaction volume as well as Jade’s deal flow.
“The DAO poses a major investment risk for all token holders,” VampireOfCrypto said in the post. He also said, “It makes sense to distribute all treasury funds of the altcoin project back to all token holders without delay. “This is the ultimate win-win situation for everyone,” he wrote.
The debate continues in the altcoin management and community!
Jade is the latest crypto project to face pressure from its investors to shut down. Over the past 12 months, a group of activist investors have furiously pushed for “quitting” and treasury redemptions at many DAOs. Cash outs, they say, are the only way to protect investors from floundering DAOs. They also claim to get kickbacks and plenty of profits. Some of these investors are joining Jade, according to a statement made on the Discord server by Jade’s press liaison Jon Ray. But Jade’s termination proposal doesn’t seem like their thing.
“For one of the most positive, supportive, and oldest members of the altcoin community to suggest this is a sad and frustrating reflection on the state of regulation in our space,” Kevin Randleman, a high-ranking DAO member, said on Discord. However, Randleman acknowledged on Discord that “the challenges Jade faces are real.” Therefore, he said, it will be up to the community to decide its future. Randleman outlined a series of bureaucratic and technical obstacles that must be cleared for salvation. He also called for the creation of a $2 million “legal defense fund” to help core contributors liquidate the DAO if the dissolution is approved.
Follow us on Twitter, Facebook and Instagram and join our Telegram and YouTube channels to be instantly informed about the latest developments!
53615
