DeFi project Parrot proposed to redeem PRT tokens at a loss of around 90% of investors’ funds

The Parrot Protocol team on Solana put to a vote DAO proposal to buy back PRT tokens using treasury funds.

According to the developers, the decision will ensure the protocol’s continued operation, which will proceed even without the governance token and decentralized governance. They also said that many users “would like to swap their PRT for the treasury value.”

The buyback price is set at $0.0045, close to the asset’s current quotes.

По данным CryptoRank, в 2021 году протокол привлек в общей сложности около $89 млн. Для купивших токены в ходе IDO и IEO инвесторов потери вложений составляют почти 90%.

According to users, the team owns 81% of the total 14.2 billion PRT. Commentators also noted that the developers had prematurely unlocked 5.3 billion of their own tokens, rendering the vote meaningless.

Sprek e’s Twitter account noted that the protocol’s team is attempting from the available funds totaling $72 million to divide $12 million among token holders and allocate $60 million to itself.

Some users, accusing the team of financial wrongdoing, said they would back the proposal. Some framed this move as a way to sever ties with a failing project, others as a foregone conclusion of the vote. The vote will close on July 27, and at the time of writing 99.5% of votes supported the buyback (1.4 billion PRT).

As reported by ForkLog explained in educational cards what governance tokens are and how they differ from utility tokens.