According to CoinDesk, the native token of crypto club Jade Protocol experienced a surge on Wednesday after a longtime member proposed that the decentralized autonomous organization (DAO) liquidate its $31 million treasury and issue redemptions to token-holders. Jade Protocol is an investment group that sources early-stage crypto deals, and its JADE token currently serves as an access ticket into the community. However, under the 'Dissolve DAO' call-to-action posted earlier this week, JADE would instead become a cash out.

The proposal, made by a member with the screen name VampireOfCrypto on September 25, cited darkening regulatory skies that are slowing Jade's progress and imperiling all DAOs. The member argued that the DAO poses a major investment risk to all token holders and that distributing all treasury funds back to token holders without delay would be a win-win situation for everyone. Jade is the latest crypto project to face pressure from its investors to shut down, with activist investors pushing for 'rage quits' and treasury redemptions in many DAOs over the past 12 months.

Jade's press liaison Jon Ray stated that some of these activist investors have been joining Jade, but the dissolution proposal does not appear to be their doing. High-ranking DAO member Kevin Randleman acknowledged the challenges Jade faces and said it will be up to the community to decide its future. He outlined a series of bureaucratic and technical barriers that need to be cleared before a redemption could happen and called for the creation of a $2 million 'legal defense fund' to help core contributors wind down the DAO if the dissolution is approved.