The Solana based DeFi liquidity protocol, Parrot has recently become talk of the town for its token killing proposal. The protocol’s governance has proposed to transit it into ‘No Token Protocol’ and redemption of PRT tokens.
Parrot raised approximately $85 million via Initial Dex Offering (IDO) in September, 2021 with plans to disrupt the liquidity market in Solana ecosystem. The protocol also introduced PAI stablecoin that was backed by LP token collateral.
Community members have proposed to redeem PRT token as the Parrot Protocol team has failed to achieve its goal and to gain real traction.
The proposal states, “While the team prefers to continue operating the Parrot Protocol, we understand that many PRT holders would like to redeem their PRT tokens for their treasury value.”
It will allow PRT holders to redeem their tokens for the value of liquid assets on a pro-rata basis with the token redemption price set to $0.0045 each.
In addition, protocol’s buyback will be distributed to PRT/yPRT LP token holders after the proposal. The 8 days redemption program will take place on the OpenBook, a DEX built on Solana.
The proposal is opposed massively by the community but the on-chain governance has already received enough votes (99.9%) to pass the proposal.
However, the proposal is not in the favor of PRT Holders with the community claiming the team is gaining most benefits out of this.