Summary:
This proposal complements PGP-40 (PRL Burn Phase II), currently live on Snapshot (April 30 – May 7, 2026), by temporarily redirecting the monthly PAR distribution currently allocated to sPRL holders, the 15% of Parallel V2 revenues distributed under Tokenomics v2.0 toward open-market PRL buybacks executed via CowSwap TWAP orders. All PRL acquired through this mechanism will be burned, materially accelerating the protocol’s path toward the 500,000,000 PRL (50% of total supply) burn milestone. The redirect runs for a defined 3-month period and is conditional on PGP-40’s approval, ending in alignment with the Phase III review already scheduled under that proposal.
Rationale:
PGP-40 established Parallel’s recurring burn trajectory through three mechanisms: monthly $20,000 treasury buybacks, sPRL1 slashing burns, and recycled unclaimed PAR. Combined with PGP-37 and PIP-65, the protocol has burned 397,297,727.42 PRL (39.7% of total supply). Reaching the 50% milestone requires burning an additional 102,702,272.58 PRL.
At the current $20k/month treasury pace alone, the 50% milestone is years away. This proposal argues that given the protocol’s profitability, healthy treasury, and the unique narrative power of a credible 50%-burn commitment value accrues more efficiently to all PRL holders through accelerated scarcity than through distributed PAR revenue, on a temporary basis.
By redirecting sPRL PAR distributions for a defined 3-month window:
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All PRL holders, including stakers, benefit from increased token scarcity. sPRL holders are the largest aligned cohort and gain the most from a faster path to the 50% milestone.
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The burn rate scales with protocol revenue, creating a reflexive flywheel: stronger protocol performance directly translates into stronger burn pressure.
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sPRL holders retain everything that defines staking beyond direct yield governance rights, Paraboost, sPRL1 slashing protections, and their seniority in any future revenue redistribution.
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The pause is bounded and reviewable. It expires automatically after 3 months and is evaluated jointly with the Phase III review already committed to in PGP-40.
We believe that aligning sPRL holders with the burn program having their share of protocol revenue routed into PRL buybacks rather than PAR distributions reinforces the core thesis of staked PRL: it is the most protocol-aligned position, and during this phase that alignment should include the burn program itself.
This proposal complements rather than replaces PGP-40. The existing $20k/month treasury buyback, sPRL1 slashing burns, and unclaimed PAR recovery all continue unchanged.
Means:
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Human Resources: DAO Multisig signers execute monthly PAR → PRL swap and burn transactions. Cooper Labs coordinates the technical routing change for sPRL PAR distributions.
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Treasury Resources: 15% of generated fees redirected from sPRL distributions, based on current Parallel V2 revenues (to be confirmed against the most recent epoch). No additional treasury USDC is consumed beyond existing PGP-40 commitments.
Technical Implementation:
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Pause sPRL PAR distributions: Starting from the first epoch following proposal approval, the 15% of Parallel V2 revenues currently routed to sPRL holders as PAR is redirected to a dedicated DAO multisig burn wallet for a 3-month period.
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Monthly buyback (PAR): The DAO Multisig swaps the accumulated PAR to PRL via CowSwap TWAP orders, paced over each monthly cycle to minimize slippage and front-running.
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Burn: Acquired PRL is burned immediately upon settlement of each TWAP order.
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Reporting: Cooper Labs publishes a monthly report including PAR redirected, PRL acquired, average execution price, slippage, and cumulative progress toward the 500,000,000 PRL milestone.
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Sunset & Review: The redirect ends automatically 3 months after the first execution. Outcomes are folded into the Phase III review committed to in PGP-40, which will propose either continuation, adjustment, or full restoration of sPRL PAR distributions.
Out of Scope:
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This proposal does not modify Paraboost, governance rights, sPRL voting power, or sPRL1 slashing mechanics.
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This proposal does not affect the existing PGP-40 mechanisms ($20k/month treasury buyback, sPRL1 slashing burns, unclaimed PAR recovery), all of which continue in parallel.
This proposal does not authorize any additional PRL burn from the DAO Treasury beyond the PAR-funded buyback described above.
Voting Options:
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For the Redirect (Pause sPRL PAR distribution → PRL Buyback & Burn for 3 months)
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Against / Rework the Proposal
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Abstain
Author(s): george
- For the Redirect
- Against / Rework the Proposal
- Abstain