Parrot Protocol Initiates PRT Token Buyback Plan Starting Next Week
After a unanimous vote in favor of the proposal to buy back PRT tokens from the market to transform into a "token-less" project, Parrot Protocol has begun the process of repurchasing PRT tokens over the next 8 weeks.
Parrot Protocol to Start PRT Token Buyback Plan Next Week
As reported by Coin68 last week, Parrot Protocol, a DeFi project on Solana that had raised $90 million, announced its plan to repurchase PRT tokens from the market to transition to a "token-less" project.
According to the latest announcement on Discord, Parrot Protocol will begin buying back PRT tokens next Monday at a price of $0.0045 per token on the DEX OpenBook. The buyback will last for 8 weeks, after which the PRT token will have no further utility.
This decision follows a governance vote on refunding Parrot’s community fund of $70 million back to token holders, which saw overwhelming support with 99.8% approval. However, controversy has ensued as some retail investors claim that the project team holds too much money and that this move primarily benefits those behind Parrot.
The move has sparked a wave of criticism from retail investors, with some accusing the development team of a "soft rug" by setting the buyback price at a mere one-tenth of the initial IDO sale price. Opportunistic traders might still find a chance here, as the average PRT price is currently around $0.00436 per token, according to CoinGecko data.
Controversy and Community Reaction:
The decision to buy back PRT tokens has divided the community. Critics argue that the buyback price is unfairly low and that the move disproportionately benefits larger stakeholders and the development team. Proponents, however, believe this is a necessary step to stabilize the project and return value to token holders.
Parrot Protocol's plan to eliminate its token has been described as an effort to streamline the project and focus on its core functionalities without the complexities of tokenomics. The buyback process, set to commence next week, will be closely watched by the community and investors alike.
