The decentralized finance (DeFi) protocol on Solana, Parrot, has achieved a significant milestone as its token redemption proposal received an impressive 99.8% support from the community. Following the resounding endorsement, the protocol is set to initiate its PRT token buyback starting this Monday.
A Thoughtful Buyback Plan
Parrot’s buyback plan entails purchasing PRT tokens from all sellers at a predetermined price of $0.0045 per token. To ensure fairness and inclusivity, the program will extend over a generous 8-week period, providing ample time for all token holders to participate.
Partnering with OpenBook DEX
To facilitate the buyback, Parrot’s team will collaborate with OpenBook, a decentralized exchange (DEX) operating on the Solana blockchain. The buy orders will be executed through providing USDC liquidity in multiple tranches, ensuring seamless and efficient transactions at the set redemption price.
Utilizing the Protocol’s Treasury
The team behind Parrot Protocol plans to fund the buyback initiative using the protocol’s treasury, which currently holds an approximate value of $70 million. While the move has been met with broad support, some investors have raised concerns, alleging that the team intends to reserve a significant portion of the treasury for themselves.
Previous Controversy: The ‘Kill Token’ Proposal
Before the token buyback proposal, Parrot Protocol faced criticism from the community for its ‘Kill Token’ proposal. The contentious plan aimed to launch a no-token protocol and redeem token holders, prompting heated discussions and debates within the ecosystem.
In conclusion, Parrot Protocol’s token buyback proposal passing with an overwhelming majority reflects strong community support and confidence in the project’s vision. As the DeFi platform begins its redemption program, it embraces transparency and inclusivity by providing ample time for token holders to participate. The partnership with OpenBook DEX further enhances the efficiency of the process, while the use of the protocol’s treasury to support the buyback is a decision that has both garnered praise and raised questions from investors. With the DeFi landscape constantly evolving, Parrot Protocol’s approach to governance and token management will likely continue to be a topic of interest within the crypto community.
