Jade Protocol, the World’s First Decentralized Venture Capital Fund for Fairly Launching Crypto Projects

Dec 23, 2021

Table of Contents

Abstract

Everyone appears to be creating their own Olympus DAO fork lately, cashing in on the popularity of the decentralized reserve currency idea, which has been popular since OlympusDAO introduced it as an experimental alternative to stable coins earlier this year.

However, the elephant in the room is that $OHM forks are essentially ponzi scams in and of themselves. The OlympusDAO reserve currency model is being spun up and forked by developer teams on practically every blockchain, but it comes with a big catch: it needs users to keep pumping money into the system, or the entire house of cards might collapse at any time.

As Daniele Sesta, the founder of Wonderland, said in a recent interview with Avalanche House, popular $OHM forks like Wonderland Money, are also ponzis.

Insane APYs are used to entice investors into a project in the hopes that the project will continue to expand. The OlympusDAO model is a brilliant approach to bootstrap liquidity, but do we really need 40 “decentralized reserve currencies” in the bitcoin space? Will all of these protocols eventually collapse if they cease growing?

These $OHM fork efforts are bound to fail until they pivot and tie themselves to actual utility. That’s why Jade Protocol, a $OHM fork of the Binance Smart Chain, is gaining traction and was the world’s fastest growing rebase token last week.

So, what distinguishes a ponzi scheme from something of genuine worth?

In a recent Medium essay titled “Is JADE a Ponzi?” Jade Protocol attempts to answer this issue by laying out why high yearly percentage yields are unsustainable and demonstrating that in order to attain “Ponzi Escape Velocity,” a protocol must accomplish two things:

Solve a real problem.
Gain belief from a large group of people.

What is the Jade Protocol?

DeFi’s first decentralized VC fund, Jade Protocol, aims to build a crypto project “for the people, by the people” with the help of a long-term Olympus-style framework. The JADE team’s goal is to use the Jade Protocol treasury, hovering in the $75-100 million range, to vet, fund, and launch the most innovative development teams and projects in crypto, allowing DAO members and stakeholders to vote on key aspects of each project using Snapshot on-chain voting.

Jade Protocol Feature

Jade Protocol is also a test of how much education affects a DAO’s ability to make judgments and invest in projects that will allow the JADE treasury to become self-sustaining.

The Jade Protocol treasury grows when treasury money is invested in productive ventures that generate income, creating potential for each $JADE to appreciate in value. This innovative use of treasury funds solves a real problem in one of humanity’s most lucrative markets—venture investing—and provides Jade Protocol real utility, allowing it to achieve the desired Ponzi Escape Velocity.

Another advantage of the Jade Protocol is that it is currently available for bonding and staking on the Binance Smart Chain for investors (BSC). OlympusDAO began on the Ethereum Mainnet, where a transaction can cost up to $200 USD. An average transaction on BSC, on the other hand, costs roughly 50 cents. This allows the $JADE treasury to compound at far more regular periods, resulting in significantly higher potential yields as compared to Ethereum.

The Jade Protocol Team

The Jade Protocol team includes Google and Amazon lead developers, a Harvard professor, industry-leading marketing experts, a game architect, and a Y-Combinator alum. They have a direct advisory board made up of Avalanche Network and Trader Joe executives, and it’s rumored that Jade will soon become a multi-chain project, launching on Avalanche Network in the near future.

In less than 60 days, the team developed two huge ecosystems (SmartCoin/JADE) with a combined market valuation of approximately $400 million dollars. This is a “unicorn event” in crypto, demonstrating how “real utility” bootstrapped by long-term ponzinomics can be such a significant crypto play when led by the proper team.

How to earn with Jade Protocol?

Stakeholders of $JADE become members of a DAO that will vote on which of the most innovative ideas and teams in crypto are worth supporting with the introduction of their Hyper Growth Fund, a genuine utility use case for the Jade Protocol treasury. By decentralizing the venture capital process and establishing the world’s first Decentralized Venture Capital Fund, Jade Protocol is turning the venture capital model on its head.

The team at Jade Protocol is proving out one of their primary hypotheses, that safe, profitable, and fun crypto experiences are possible through hive-mind data collection, quick iteration, and a community that supports innovation, using an ethos of fairly launching the best projects in crypto while creating educated, ethical investors through gamified learning and viral marketing.

With a game called “Staking,” Jade Protocol is currently gamifying the staking experience (3,3,3). How can you earn up to $3.33 million in weekly BUSD airdrops?