JPEX is Transitioning to DAO and Freezing Assets for Two Years
JPEX transitions to a DAO model with a shareholder dividend scheme. Users can convert assets into DAO dividends and receive new tokens and trading fees.
JPEX's recent announcement reveals its intent to transition from a traditional centralized exchange model to a DAO. The company's blog highlighted that the voting for this transformation, termed the "DAO Shareholder Dividend Scheme," concluded on September 28. The results were overwhelmingly in favor, with 68% of the platform's users supporting the initiative.
The scheme's primary allure is the opportunity it offers to users. They can convert their locked-up assets into DAO dividends at a 1:1 exchange rate. This conversion comes with a unique twist: after a year, users have the option to sell back their converted assets at 30% of the initial conversion price. Alternatively, they can wait out the full two-year period and opt for a 100% buyback.
To sweeten the deal, JPEX has made several promises to its users. Those who participate in the plan are slated to receive dividends in the form of new tokens and trading fees. Moreover, they will be granted a share of JPEX Coin (JPC), the exchange's proprietary token, proportional to the dividends they accrue.
However reports have emerged suggesting that some assets were converted without the explicit consent of the users or any prior notification. One user voiced their concerns, stating that their assets, including Tether (USDT) and other cryptocurrencies, were unexpectedly converted into JPC, a token they believe has limited liquidity and utility.
This user-centric concern is further worsened by recent events surrounding JPEX. The exchange found itself in legal problems when several individuals connected to the platform were arrested by Hong Kong police. The regional securities regulator has pointed fingers at JPEX, accusing it of operating an unauthorized cryptocurrency platform. Law enforcement agencies have also alleged that the Dubai-based exchange misappropriated $178 million (HK$1.4 billion) from over 2,300 individuals.