- Parrot Finance sets to begin PRT token redemption on Monday, in line with a plan led by activist investors to phase out the token.
- Despite controversy surrounding the voting process and potential unequal distribution of treasury funds, the redemption program was passed with 99% votes in favor.
Under considerable pressure from activist investors, Parrot Finance, the beleaguered DeFi protocol, has confirmed the start of its PRT token buyback program on Monday. Information from the platform’s Discord server indicates that the process is part of an investor-led initiative to phase out the PRT token.
Operating on the Solana blockchain, Parrot Finance is a lending and stablecoin market platform. The token buyback will see Parrot Finance purchasing PRT tokens from all willing sellers at a rate of $0.0045 each. The mechanism for this transaction will be a stablecoin market established on the OpenBook decentralized exchange. The redemption period will span eight weeks, concluding with the complete phase-out of the PRT, Parrot’s governance token.
The implementation of this redemption program comes on the heels of a community vote, which aimed to redistribute a portion of Parrot’s treasury, worth over $70 million, back to the token holders. The proposal was met with overwhelming approval, with 99% of votes in favor. However, the decision has caused unrest among small-scale investors who believe the developer team is retaining an excessive share of the treasury.
Critics like the pseudonymous Ashpool, a Solana ecosystem focused on-chain analyst, have voiced their concerns about the voting process. Ashpool alleges that the vote was a “premeditated sham”, largely dependent on wallets connected with insiders. He refers to an apparent “dress rehearsal” vote organized a week before the final proposal.
Existing Parrot and PRT investors are predicted to recover roughly a tenth of their initial investment value. In contrast, recent investors, particularly the activist investors who pressured Parrot’s leadership for a redemption program, could potentially see significantly higher returns, depending on their buying timeline.
The redemption program announcement arrives two years into Parrot’s lackluster journey on the Solana blockchain. Despite raising an impressive war chest of over $90 million from retail and venture investors, the project has struggled to gain momentum.
