Redemption Plan for Parrot.fi’s PRT Token
The redemption plan for Parrot.fi’s PRT token heavily favors employees and venture investors, leaving early investors with major losses. The proposal suggests phasing out the PRT token and distributing the project’s treasury among token holders. However, the redemption rate is set at $0.0045 per token, resulting in a significant loss for early investors.
Key Points:
- Parrot.fi’s total value locked (TVL) is low compared to other Solana DeFi protocols.
- The PRT token has lost at least 88% of its value since its initial sale.
- The project’s treasury remains in the tens of millions.
- The redemption plan benefits employees and venture investors, with a higher redemption price for insiders.
- The proposal does not include the creation of a decentralized autonomous organization (DAO) despite earlier promises.
Despite the discontent among long-term holders and accusations of a “robbery,” many investors are in favor of the redemption plan due to the lack of results and draining of the treasury by the team. The vote for conducting a buyback is currently in favor, although it is below the required quorum.
Hot Take:
The redemption plan for Parrot.fi’s PRT token reflects the challenges faced by the protocol and its disappointing performance compared to other Solana DeFi projects. The heavily skewed benefits towards employees and venture investors further highlight the lack of transparency and fairness within the project. While a redemption is seen as a necessary step by some investors, the overall sentiment is one of frustration and disillusionment with the team’s actions.
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