Parrot Finance Launches PRT Token Buyback, Caps Fiery Vote!

Key Points:

• Parrot Finance announces redemption program, phase out of governance token PRT after community vote.
• Solana-based lending and stablecoin market sets up stablecoin market to buy PRT tokens at $0.0045.
• Original investors can expect to recover only about a tenth of their investment, while newcomers and activist investors could make many multiples.

Parrot Finance is undergoing a new redemption program.

According to posts on its Discord server, the protocol plans to phase out its governance token, PRT, and will begin redemptions on Monday. The redemption program will last for eight weeks and will conclude with the sunsetting of PRT.

The Solana-based lending and stablecoin market has set up a stablecoin market on the OpenBook decentralized exchange to buy PRT tokens from all sellers at a price of $0.0045 apiece. This redemption program comes after a community vote to return a slice of Parrot’s treasury, valued at over $70 million, to token holders. The vote passed with a lopsided 99% in favor but faced backlash from small-time investors who feel Parrot’s developer team is keeping too much of the treasury for itself.

While original investors of Parrot and PRT can expect to recover only about a tenth of the value they put in, newcomers, particularly the activist investors who pressured Parrot’s leaders for a redemption program, could make many multiples, depending on when they bought in.

Parrot’s redemption program comes after two years into the project’s unremarkable run on the Solana blockchain, where it has failed to catch fire despite raising over $90 million from retail and venture investors. Some experts believe that the redemption program could help Parrot Finance regain the trust of its small-time investors and attract more new investors as well.

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