JPEX, a troubled cryptocurrency exchange, has unveiled a plan to transform itself into a decentralized autonomous organization (DAO) and convert user assets into dividend shares, providing incentives for users to lock their assets for two years. The exchange announced on October 4 that a vote on its DAO shareholder dividend plan had been completed, with 68% of users reportedly in favor of the proposal.
Under this program, users can convert their frozen assets into DAO Stakeholder dividends at a 1:1 ratio. JPEX also offers a buy-back option at 30% of the conversion price after one year and 100% of the conversion price after two years. In addition, users who agree to the plan will receive dividends from JPEX through the listing of new tokens, trading fees, and a pro-rata distribution of JPEX Coin (JPC), the exchange's native token.
However, concerns have arisen regarding user consent and asset conversion. An unnamed JPEX user claimed that her assets were converted without her consent or prior knowledge after the exchange announced the plan's implementation. According to her, she and other users discovered that they could no longer withdraw their assets, which had been converted into JPC tokens with low liquidity and limited use cases.
The situation raises questions about user participation in the plan, as some users reported not having the option to vote against it on their app. JPEX's move toward a DAO structure comes amid ongoing legal and regulatory issues, including arrests related to the exchange's operations and allegations of operating an unauthorized cryptocurrency platform that defrauded thousands of users.
