Jade Protocol faces pressure from investors to dissolve its treasury

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Jade Protocol faces pressure from investors to dissolve its treasury

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

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

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

While this proposal is not different from a so-called rage quit, where DAO participants demand the total or partial liquidation of a project's treasury, its author says the recommendation is not malicious.

Vampire of Crypto, Vampire of Crypto, told DL News. Rekt is a crypto and investment slang when a trader experiences massive losses.

Jade Protocol, a crypto investment collective, also known as JADE, is the original token of Jade Protocol. The token, which trades on the BNB Chain and Avalanche blockchains, provides holders with access to early-stage crypto investment deals.

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

The sudden price rise led to speculation by some community members in the Jade Discord server that certain 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 admitting that Jade Protocol is a failed project, Vampire of Crypto said it is not a slow rug.

The teams behind failed crypto projects have been accused of monetizing themselves, with investors feeling that their investors have enriched themselves with bogus salaries without providing value for tokenholders.

The accusation has been made against projects like Hector Network and Parrot Finance, both of which recently went through a rage quit process.

In contrast to being a slow rug, 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 a vote to dissolve the treasury and blamed regulatory headwinds for the project's decline.

On the DAO's Governance forum, Ray said, ''Always look forward to the opportunity to meet with a significant number of senior officials,'' he said.

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

Despite the project's decline, the community praised the protection of Jade's treasury by the bear market conditions that have remained in place since its inception.

Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech.