Parrot Finance is facing a recovery vote two years after it raised more than $80 million in a public token sale during Solana’s heyday.
The proposed redemption program seeks to end Parrot’s governance token, PRT, with more than $80 million from its treasury to be distributed to holders at a price of $0.0045 per token. The price will significantly reduce the investment value of the early backers, causing them to get back a tenth of their initial investment of $0.04 per token.
Critics claim that the team behind Parrot Finance could walk away with up to $60 million under the proposed recovery plan while leaving other investors with only $12 million.
A quick overview of the responses to an offer On social media it paints a picture of a divided society. Some investors see redemption as a necessary step to curb treasury mismanagement, while others see it as robbery due to the significant loss in the value of the token.
Majority voters favor the proposal
The situation has also raised concerns in the broader crypto community about the risks associated with financing projects through unregulated token offerings, particularly with increased scrutiny from regulators such as the US Securities and Exchange Commission (SEC).
The motion is currently open to a vote, with six days remaining. However, there are many who question the outcome, claiming that the team retains too much control over the reconstruction supplies and could influence the vote in their favour.
At the time of writing, 97% of the vote supported the buyback.
the parrot However, the team disputed some of these claims, claiming in a July 22 Twitter statement that they did not touch or vote with the treasury tokens and that suggestions they might make to offset up to $60 million in proposed token transfers are far fetched.
However, despite the team’s objections, the absence of a decentralized independent organization (DAO) has prevented token holders from participating in important decisions, with the team reportedly implementing major changes without formal votes.
