Vampire of Crypto's 'jade Protocol' calls out for dissolution

Vampire of Crypto's 'jade Protocol' calls out for dissolution

Jade Protocol is the latest DeFi DAO project, facing pressure from investors to liquidate its treasury and call time on the project.

This clamor comes after a proposal this week from a longtime investor in the project, who goes by the pseudonym Vampire of Crypto.

The proposal argues for Jade Protocol DAO to dissolve due to uncertainty about its future. If approved, this dissolution would necessitate the liquidation of Jade's $32 million treasury to finance a redemption process by investors.

While the proposal is no different from a so-called rage quit, where DAO participants demand the total or partial liquidation of a project's treasury, the author said the recommendation is not malicious.

Vampire of Crypto, Vampire of Crypto, told DL News. When a trader encounters significant losses, Rekt is a crypto and investment slang.

Jade Protocol, a cryptocurrency investment collective, creates JADE as its native token. The token, which trades on the BNB Chain and Avalanche blockchains, grants holders access to early-stage crypto investment deals.

JADE's price is down 97% from its peak, according to CoinMarketCap data, but it doubled after the proposal was published.

The sudden price rise led to speculation by some community members on the Jade Discord server that some insiders were banking on a possible DAO vote to liquidate the treasury and were buying up JADE tokens.

Jo3Dang3r also said the proposed redemption was not a rage quit.

While Vampire of Crypto admitted that Jade Protocol is a failed initiative, Vampire of Crypto said it was not a slow rug.

The teams behind failed crypto projects appear to have enriched themselves with bogus salary without providing value for tokenholders, who have been accused of slow rugging in crypto.

The accusations have been made against projects like Hector Network and Parrot Finance, both of which recently went through rage quit processes.

Vampire of Crypto blamed the project's demise on DeFi's uncertain legal standing.

Jade's community manager, Jon Ray, expressed disappointment at the possibility of voting to dissolve the treasury and blamed regulatory headwinds for the project's decline.

Ray, who spoke at the DAO's governance forum, said that there was no need for a speculative approach to the government's governance.

''S been healthy for the community to map all possible outcomes,'' Ray said.

Despite the project's decline, several community members commended Jade's ability to safeguard its treasury through the bear market conditions that have dominated since its inception.

We present our Nigeria-based DeFi correspondent, Osato Avan-Nomayo, on our Nigeria-based news channel. He covers DeFi and tech.