Ras Kass Picks $500K Over Jay-Z Dinner, Rips Labels For Promoting Wack Rap

Ras Kass has made peace with his drunken ball drop with Jay-Z from years ago, but now that he knows what he knows ... he'd opt for the $500K in the Jay dinner debate.

TMZ Hip Hop caught up with the West Coast MC Wednesday night at Projector L.A.'s Halloween bash, where he told us his wounds from ruining his chance to spearhead Jay's label have long healed.

But, he's learned a valuable lesson: All up-and-coming rappers better be ready to lose themselves at ANY given moment.

And, steer clear of all wack hip hop!!!

RK met up with Jay in NYC in the early 2000s in hopes of being the flagship artist for the developing Roc-A-Fella West label division.

When they arrived at their club destination, RK says paranoia crept in as he got the hunch he and Jay could end up fighting -- so he began downing some liquid courage.

No club brawls took place, but when Jay introduced RK on the mic, he was too slizzard to nail his rhymes ... and Jay lost his number!!!

In hindsight, RK tells us he forgot the real reason he was there that night, and fumbled the bag -- but there's no hard feelings.

While he praises Jay for his shrewd business sense, Ras Kass has no shame in his game ... he says he'd definitely take the imaginary $500K over a second chance meeting with the mogul.

Hey, that's exactly what Jay's advising everyone to do!!!