Parrot Protocol’s Controversial Proposal: Strategic Or Financial Crime?

Key Points:

• Parrot Protocol has proposed a controversial plan to convert into a token-free protocol and redeem PRT at $0.0045.
• 81% of PRTs are controlled by the team, leading to community concerns about the proposal’s potential to allow the team to obtain remaining IDO funds.

Parrot Protocol proposes to convert into a token-free protocol and redeem PRT at $0.0045. Controversial or strategic?

Parrot Protocol, a DeFi project built on Solana that raised $85 million through IDO in September 2021, has reportedly proposed a controversial plan to convert the project into a token-free protocol and redeem its Token PRT at $0.0045. The team controls 81% of the 14.2 billion PRTs available, with the majority of the team-controlled tokens being unlocked early without a DAO vote.

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.

Oh they also early unlocked their tokens and will be voting it through regardless of what anybody else says pic.twitter.com/vmhDXJochQ

— Spreek (@spreekaway) July 21, 2023

The community, comprising eight original investors who paid $80M into the project, owns the remaining 2.78 (19%) tokens. Parrot Protocol has $72M in assets, meaning that if 80% of the community redeems their 2.78 PRT at $0.0045, the team-controlled tokens will receive closer to $0.0055 per PRT, or 22% more per PRT token.

Following the threads, Spreek posted an image saying that unlocking unvested tokens is a controversial issue in the Parrot Protocol community. There is a significant supply overhang of unvested PRT tokens for the VCs that participated in the seed round. About 1/3 of these vesting tokens have already been unlocked in the first year, and a further 2/3 would be released over the next two years.

On the previous episode of this shit (Nov 2022): pic.twitter.com/7ec0Y7idhf

— Spreek (@spreekaway) July 21, 2023

Parrot Protocol’s controversial proposal to convert it into a token-free protocol and redeem its Token PRT at $0.0045 has caused a stir in the community. The team controls the majority of the PRT tokens, and the community is concerned that this proposal will allow the team to obtain the remaining funds from the IDO. Unlocking unvested tokens is an issue that the community is grappling with, and the proposal to unlock them earlier could help to reduce uncertainties and support a more stable market for PRT tokens.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Read more...

Coincu News