Solana-based decentralized finance project Parrot Protocol recently forwarded a proposal to redeem its governance token PRT in order to become a token-free protocol. The move to ditch the token came two years after the DeFi protocol raised more than $80 million in its Initial DEX Offering (IDO).
Crypto influencer Spreek took to Twitter recently to highlight Parrot Protocol’s questionable governance:
Today in governance was a mistake news: @gopartyparrot team takes their $72m remaining in ICO funds and attempts to split it $12m to the token holders, $60m to the team.
— Spreek (@spreekaway) July 21, 2023
Oh they also early unlocked their tokens and will be voting it through regardless of what anybody else says pic.twitter.com/vmhDXJochQ
According to Spreek, the Parrot Protocol’s latest proposal sought to take $12 million from the remaining $72 million in IDO funds and give it to PRT holders, with the other $60 million going to the Parrot team. As per the proposal posted on Parrot’s governance forum, the redemption price for the PRT tokens was set at $0.0045.
The Parrot community responded to the governance proposal on the forum and called out the Parrot team for attempting to take a bigger cut from the IDO proceeds at the expense of the initial investors. The crypto influencer added that the Parrot team had unlocked their vested tokens earlier than previously stated, and would use it to vote in favor of their controversial proposal.
The team behind Parrot Protocol controls 81% of PRT token’s total supply, which comes out to over 11.5 billion PRT. The Parrot Protocol controlled 6.2 billion of these, with the team controlling the remaining 5.3 billion, which were reportedly early unlocked. The community and initial investors own the remaining 19% supply of 2.7 billion PRT, which they received in the $80 million IDO.
Given that Parrot has $72 million in assets remaining from the IDO funds, the team would redeem their 11.5 billion PRT at $0.0055 per PRT, while the community’s redemption rate would be $0.0045 per PRT, which would be an 18% decrease. At the time of writing, PRT was trading at $0.0042, down more than 3% over the past 24 hours.
