The Solana-based DeFi liquidity protocol, Parrot, has recently stirred up a storm with its controversial “No Token Protocol” proposal and the redemption of PRT tokens. Launched in September 2021 with an $85 million Initial Dex Offering (IDO), Parrot aimed to revolutionize the liquidity market in the Solana ecosystem and even introduced the PAI stablecoin backed by LP token collateral.
Proposal for Token Redemption
However, the tides have turned, and the Parrot Protocol team is facing opposition from community members who are demanding the redemption of PRT tokens. They argue that the team has failed to meet its objectives and achieve significant traction in the market.
The proposal, backed by concerned PRT holders, 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.”
Under this proposal, PRT holders will have the opportunity to redeem their tokens for the equivalent value of liquid assets. The redemption price has been set at $0.0045 per PRT token.
Discord Amongst the Community
Despite the contentious proposal, the on-chain governance has surprisingly garnered overwhelming support, with 99.9% of the votes in favor of passing the redemption initiative. This disparity has led to a heated debate within the community, as many believe that the team is reaping the most significant benefits from the proposal.
Parrot’s Redemption Program
Following the implementation of the proposal, Parrot’s buyback will be distributed exclusively to PRT/yPRT LP token holders. The entire redemption program is scheduled to last for a period of eight days. During this time, eligible participants can participate in the redemption process on the OpenBook, a decentralized exchange built on the Solana blockchain.
Community Concerns and Distrust
The proposed “No Token Protocol” has not only divided the community but also raised concerns about the protocol’s future and the impact on PRT holders. Many are questioning the team’s motives, suspecting that they might be prioritizing their interests over those of the token holders and the wider community.
The Path Ahead
As the controversy unfolds, the fate of the Parrot Protocol remains uncertain. The team’s insistence on continuing the operation of the protocol further deepens the divide with those who advocate for token redemption. The team now faces the challenge of regaining the trust and confidence of the community and demonstrating a commitment to the protocol’s long-term success.
Conclusion
Parrot’s ambitious journey in the Solana DeFi ecosystem has been met with both acclaim and skepticism. While the protocol initially attracted significant investment and attention, its recent proposal to become a “No Token Protocol” and the redemption of PRT tokens has sparked intense debate within the community. As the redemption program commences on the OpenBook DEX, the crypto world watches with bated breath to see how the situation unfolds. The Parrot Protocol team must now navigate the challenges ahead, seeking to strike a delicate balance between the interests of the community and the sustainability of their revolutionary DeFi liquidity protocol.
