Jade Protocol (JADE) news

Jade Protocol

Extremely urgent update regarding the bonding event. Everyone watch AMA and please read below carefully. 

Read full Discord message, here: https://discord.com/channels/904292869622362152/909983412524302387/996471248836100136

Bonding is now active again at https://jadeprotocol.io/#/

Here’s what happened:
The Discount 1 bonding contracts went live yesterday at 9am PST, July 11th. Prior to the event starting, we set a limit of 100,000 JADE emitted for each bonding contract (Discount 1, 2 and 3). 

This governor was implemented as a safety measure to ensure that there was no way we could mint more JADE than was intended during the bonding event. In the event that the cap was reached for Discount 1, we would easily be able to increase the cap to accommodate the amount of assets remaining to bond.

When we went to make this routine analysis, we realized that the projected numbers for the JADE supply impact had an error in them related to how the fixed price of SMRTR was being calculated on mainnet and had to reconfigure them to properly assess the full impact of how the bonding event would play out on the JADE circulating supply and ultimately, the floor price.

The projected supply impact assuming 100% of the 7,655 SMRTR Diamond Wallets bond into Discount 1 is as follows (currently 94% have bonded into the 4-year option):

If 100% of Diamonds Bond 1 year = ~218,864 JADE
If 100% of Diamonds Bond 2 year = ~411,981 JADE
If 100% of Diamonds Bond 3 year = ~598,067 JADE
If 100% of Diamonds Bond 4 year = ~766,907 JADE

You can see that the increase in supply over 4 years could potentially equal 766,907. 

We have already published that Discount 2 and 3 bonds will have a global cap of 50,000 JADE total, which leaves the total possible supply impact and potential increase to JADE circulating supply at  ~816,907 $JADE.

If the trend continues, the circulating supply would increase by ~816,907 JADE over 4 years, bringing the total circulating supply from its current 783,923 to 1,600,830. 

Given the formula for JADE’s floor price is non-protocol controlled supply / backing treasury value, at full supply impact, Jade Protocol will be minting 531 JADE per day and barring contributions from the investment treasury, this would have the effect of decreasing the floor price due to the significant amount of unvested JADE via bonds to around ~$10 (pending total bonded amounts).

The investment treasury can only transfer stablecoins to the backing treasury once the investment treasury is in profit (currently at $17M in value—must achieve above $27M in value (starting NAV)) so members of the JADE community will need to make their own assessment on the likelihood of the backing treasury increasing in value. 

Additionally, JLP bonders into JADE will need to re-run profit simulations assuming the backing price of JADE is decreasing over time due to inflation, instead of against the current price.

This is obviously disconcerting but before we turn bonding back on and open up Discount 2 bonds for USDC capital outlay, we wanted to make sure everyone understands the reality of the current economic situation.

The floor price will move in value (up and down) in relation to the planned inflation of JADE until or if the investment treasury is able to create meaningful ROI for future transfer of funds into the backing treasury.

The team here at JADE are extremely bullish that Gavin, Paul and the rest of the team can grow the investment treasury. If you read our investment reports, we have outperformed a vast majority of funds by recognizing the trend of the crypto market and positioning our investment treasury accordingly, saving tens of millions in potential losses. We have made investments into world-class projects like Nillion and NFT.com that, when they come to fruition, we are hopeful they will create massive ROI for us. 

None of this is intended to be "doom and gloom" but rather, we are attempting to be as open and transparent about the current macro-economic situation as possible so that we can collectively as a community become better investors.…

URGENT: JADE Bonding Supply Impact - AMA (July 12th)

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Jon Ray's AMA recording is now LIVE, regarding the inflation from Discount 1 bonding: https://www.youtube.com/watch?v=bekLKhHrO1s&t

Also, bonding for Discount 1 has resumed at: https://jadeprotocol.io/#/bond/0

Jon Ray's AMA recording is now LIVE, regarding the inflation from Discount 1 bonding:.