PGP-37 l PRL Burn Phase I

Governance Proposal (PGP) Approved PGPs
1

Summary:

This proposal aims to burn PRL coming from boughtback MIMO, issued MIMO/PRL from January 1st 2024 & future MIMO/PRL inflation.

Rationale:

Since PIP-46 l Introducing Parallel Tokenomics v2.0 100% of MIMO inflation (then converted in PRL) is going to the DAO Treasury. 95% of MIMO inflation was previously (since January 2024) allocated to the DAO Treasury and 5% to vMIMO holders. As the protocol has been profitable and does not require the distribution of MIMO/PRL as incentives to grow since January 2024, we propose to retroactively burn all MIMO/PRL minted since January 1, 2024. This represents an amount of 14,625,741.78 PRL to date.

There are also currently 4,344,731.75 MIMO/PRL tokens left to be minted over the next several years, and since the DAO has no need for these tokens, we propose to burn progressively upon release of these tokens.

In addition, many MIMO tokens were bought back and locked using protocol revenues between 2021 and 2024. The lock on these tokens expired between December 20 2025 (Ethereum & Polygon), and March 7 2026 (Fantom). The total buyback amount is 6,185,692.65 MIMO/PRL, which we propose to burn completely.

Below is a summary of the proposed PRL burn. A total of 25,153,452.17 PRL would be burned, representing 2.51% of the total supply.

Capture d’écran 2026-01-07 à 15.04.51
Capture d’écran 2026-01-07 à 15.04.511022×304 24.7 KB

14,625,741.78 PRL needs to be burned from previous inflation if the proposal is approved. However there are only 15,311,661.76 PRL in the DAO. Furthermore, as voted in the DAO Treasury strategy, the DAO must hold a minimum of 5,000,000.00 PRL at all times. We then propose to use USDC held by the DAO Treasury to buyback 10,311,661.76 PRL on the open market to meet burn needs.

While some may want to use part of generated protocol fees to buyback & burn PRL we believe that this is not the right thing to do given the fact generated protocol fees are currently used to grow & secure the protocol while distributing 15% of Parallel V2 revenues of them to sPRL holders.

Means:

  • Human Resources: Multisigners will need to sign and execute transactions to execute the proposal.
  • Treasury Resources: 25,156,166.18 PRL

Technical implementation:

  • On Ethereum:
    • Buyback 10,311,661.76 PRL using CowSwap TWAP Orders
    • Burn 14,625,741.78 PRL
    • Migrate 4,562,389.69 MIMO from buybacks to PRL
    • Burn 6,185,692.65 PRL from buybacks once unlocked
  • On Polygon:
    • Migrate 1,196,233.02 MIMO from buybacks to PRL
  • On Fantom:
    • Migrate 427,069.94 MIMO from buybacks to PRL

Voting options:

  • For the PRL Burn
  • Against / Rework the Proposal
  • Abstain

Author(s): Jean Brasse from Cooper Labs

Community poll:

  • For the PRL Burn
  • Against / Rework the Proposal
  • Abstain
0 voters
2 Likes
2

Thanks for the proposal, makes sense! I had one question mainly around the buyback part: do you have an expected USDC spend range and a rough timeline for buying the ~10.3M PRL? I’m curious how you’re thinking about pacing this to limit slippage and avoid short-term selling or people trying to front-run the buyback.

2 Likes
3

What argument is here to burn, and not give to the DAO? To completely stop inflation and force it into a deflationairy scenario?

2 Likes
4

Given current PRL price, the expected cost for the DAO to buyback these tokens should be around $30k.

DAO Multisig signers will buy tokens using TWAP from CowSwap. Given the expected amount needed, the best would to buy these tokens for a period of 2 to 4 weeks.

2 Likes
5

Technically inflation is already stopped since all PRL have been minted at the token creation. However, the DAO still receives tokens through the inflation of the MIMO token over time.

The idea behind burning these tokens is to:

  • send a positive signal to the market
  • increase ownership among current holders

As the protocol is profitable and does not plan to use PRL for expenses/incentives in the medium and long term, we believe it is appropriate to proceed with this token burn.

2 Likes
6

I agree this is a positive signal. Thnx JB.

3 Likes
7

JB, why is this one called Phase 1? You got more burns planned? Make me happy

2 Likes
8

For now there is no Phase II planned. We don’t think that use protocol’s profits to buyback & burn tokens makes sense.
The proposed burn in the proposal can be seen as a retroactive inflation cut.

2 Likes
9

The proposal is now live on Snapshot from January 17th to January 24th. To vote: https://vote.parallel.best/#/proposal/0x2481c37b4270a963c8c8b8e731441e3f651ed40986074e96a04c35c365b34ed2

1 Like
10

The proposal has been approved by the DAO. Results: Snapshot

1 Like