A recent proposal from the team at Parrot Protocol, a Solana-based liquidity network, has sparked controversy among its community members. He proposalAvailable for voting until July 27, it requires the exchange of its PRT tokens for liquid treasury value and the transition to a tokenless protocol.
Based on the proposal, the redemption price of PRT was set at $0.0045 per token. According According to CryptoRank data, the protocol has raised more than $89 million since its inception in 2021, with a current return on investment (ROI) of -89% for investors on its Initial DEX Offering (IDO) and Initial Exchange Offering (IEO). Having a negative ROI indicates that investors have lost money on their investment.
Today in the government it was wrong news: @gopartyparrot The team takes the remaining $72 million in ICO funds and tries to split them $12 million for the token holders, $60 million for the team.
Oh, they also unlocked their tokens early and will vote for it regardless of what others say. pic.twitter.com/vmhDXJochQ
โ Speak (@speakaway) July 21, 2023
The protocol blueprint does not explain the reasons behind the move, only mentioning that "many PRT holders would like to redeem their PRT tokens for their treasury value." The proposal also follows changes to Parrot tokenomics from November 2022, when the protocol shortened his token lockup period from 12 months to 7 days, claiming that it would "create more flexibility for interested parties to enter or exit their positions."
Feedback from community members indicates that the team controls 81% of the tokens. However, the Parrot team has refuted these claims by stating on Twitter that treasury tokens are never touched or used for government purposes. A breakdown provided by CryptoRank indicates that 35% of the tokens were distributed as protocol incentives, 20% as teams and angels, 10% as public sales, 20% as seed rounds, and 15% as other.
Additionally, the proposal does not clarify what would be the fate of unclaimed funds after the 8-week redemption period, and community members suggest that the funds could be withdrawn by insiders.
"The community has already thoroughly explained why we are not interested in this. The pro-rated value is extremely low and does not account for many of the team's misuses of treasury without community consent. The team also prematurely unlocked the team's acquisition tokens and VCs, so they are the majority token holders, making this vote pointless and a complete sham," one community member wrote on the post. discussion of the proposal.
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