Solana’s Parrot Protocol submits proposal to go tokenless, investors risk face -89% returns
The proposal, up for vote until July 27, calls for the redemption of its PRT tokens for liquid treasury value, and the shift to a no-token protocol.Based on the proposal, the PRT redemption cost was established at $0.0045 per token. Having an unfavorable ROI indicates that investors have actually lost money on their investment.Today in governance was an error news: @gopartyparrot team takes their $72m remaining in ICO attempts and funds to divide it $12m to the token holders, $60m to the team.Oh they likewise early unlocked their tokens and will be voting it through regardless of what anyone else states pic.twitter.com/vmhDXJochQ— Spreek (@spreekaway) July 21, 2023
The protocols strategy does not explain the reasons behind the move, just mentioning that “many PRT holders wish to redeem their PRT tokens for their treasury value.” The proposition likewise follows changes in Parrots tokenomics from November 2022, when the procedure shortened its token locking period from 12 months to 7 days, claiming it would “produce more versatility for stakeholders to get in or leave their positions.” Comments from community members suggest that 81% of tokens are controlled by the group. Parrots team has refuted these claims by specifying on Twitter that treasury tokens are never ever touched or utilized for governance functions. A breakdown provided by CryptoRank suggests that 35% of tokens were dispersed as Protocol Incentives, 20% as Team & & Angels, 10% as public sales, 20% as Seed rounds, and 15% as Others.Parrot Protocol Token Sale. Source: CryptoRank.Additionally, the proposal does not clarify what would be the fate of unclaimed funds after the 8-week redemption duration, with community members recommending the funds might be cashed out by insiders.” The neighborhood has already explained in painstaking detail why were not thinking about this. The pro-rata value is a severe lowball and stops working to represent a number of the teams abuses of the treasury without the communitys authorization. The group likewise prematurely unlocked the team and VCs vesting tokens, so they are the bulk token holders, making this vote useless and an overall farce,” composed one neighborhood member on the proposal discussion.Magazine: Tornado Cash 2.0– The race to develop safe and legal coin mixers