The developers behind Parrot Finance, a Solana-based DeFi lending protocol, want to transition to a tokenless system and redeem existing PRT tokens for USDC. But early investors in the project are fuming at the prospect of a significant loss.
On one side, the Parrot team wants to release the value currently locked in PRT, which has plummeted by more than 80% since the initial sale. On the other, angry investors have pointed out that they will bear the brunt of the losses. Meanwhile, insiders could take a disproportionate share of any funds raised by detokenization.
Parrot Finance Proposes PRT Redemption Scheme
On Friday, the Parrot developer team initiated a vote on whether to transition to a tokenless protocol.
If passed, the proposal will see the $50 million in funds from the Parrot treasury divided up among PRT holders. Valuing the tokens a $0.0045 each, the scheme would see IDO participants recoup just a tenth of their initial investment.
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Investors Fuming at Prospect of Massive Losses
Suppose it wasn’t bad enough that early Parrot supporters have already seen the bulk of their investments wiped out. In that case, responses to the latest proposal suggest that many now feel cheated by the project’s developers.
One angry PRT owner called the proposal “pure financial crime,” arguing that the Parrot team would be able to cash out any unclaimed funds after the 8-week redemption period. This could mean they rake back significantly more than the IDO
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Author: James Morales
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