In a shocking turn of events, Solana‘s Parrot Protocol has presented an unexpected proposal that could potentially result in a no-token protocol. Causing ripples in the cryptocurrency sphere, this move has brought forward the team’s choice to redeem the PRT tokens for their liquid treasury value without providing any detailed explanation.
The calculated redemption price for PRT is anticipated to be about $0.0045 per token, which sends an unsettling wave across the community who invested in its inception back in 2021. CryptoRank recorded a staggering $89 million raise since its launch. This shift could result in a shocking -89% on Return on Investment (ROI), leaving many investors in the lurch.
While many views are surfacing from different angles, community members are vocal about their worries and skepticism, branding the move as a “financial crime”. On the other hand, supporters assert this maneuver’s objective is to create more flexibility for stakeholders, a change that traces back to Parrot’s tokenomics revisions in November 2022.
Adding to the foggy atmosphere, the team has countered claims stating that 81% of tokens are under their control by stating that treasury tokens are not touched or utilized for any form of governance purposes. Critics flag as alarming that the announcement does not provide clear information about the fate of unclaimed funds post-redemption period which spans for eight weeks. This omission heightens fears, with some expressing concern about potential cashouts by insiders.
In the midst of all uncertainties, a significant aspect stands out – the voice of the community. Many community members feel left in the dark over several decisions, notably the team’s handling of the treasury and premature unlock of vesting tokens held by the team and VCs. A sentiment of betrayal echoes, deepened by the sense of an invalidated voting process due to purported majority token possession by the team.
Primarily, this shift raises questions about transparency, governance, and the real power of decentralized communities. It sparks a challenging debate about the balance between innovations, investor safeguards, and meaningful community participation. As this drama unfolds, it is yet to be seen whether this is the beginning of a new form of protocol and what implications it might have for existing token holders. Are the anxieties justified, or is this just a skeptical reaction to change?
Source: Cointelegraph
