From DeFi to on-chain computing farm, what is the potential of Prosper, the first Web 3 mining company?

As more and more infrastructure and dAPP projects are built on Bitcoin, BTC is moving towards a mature ecosystem. However, as an indispensable part of the entire Bitcoin operation and ecology, most of the resources and activities of Bitcoin mining are concentrated in the hands of Web 2 large companies, which seems a bit ironic for the blockchain, which is famous for its decentralization.

This article will introduce Prosper, a long-established DeFi project that will be rebranded in October. Prosper aims to become an on-chain computing farm and may become the first DePIN+RWA project in the Bitcoin ecosystem. What application potential is worth looking forward to after the rebranding and re-empowerment of the $PROS token?

What is Prosper: The first Web 3 mining company to tokenize Bitcoin hashrate

Prosper is a platform that will focus on re-empowering Bitcoin computing power. By introducing institutional-level Bitcoin mining capabilities onto the chain, that is, combining the functions of DeFi, it will convert computing power back into liquidity and give more possibilities to the entire mining computing power industry.

Why focus on mining: a key link that has been ignored for a long time

Bitcoin, as the token with the highest market share in the entire cryptocurrency market, has a market value of approximately US$1.3 trillion. Almost all representative mining-related companies on the market have a total market value of approximately US$20 billion, and almost all of them are Web 2 companies. There has never been a project in the cryptocurrency system that focuses on tokenizing computing power.

Although we can see explosive growth in the Bitcoin ecosystem, or the so-called BTCFi, during this cycle, in this early stage, most projects built around BTC focus on various infrastructures, such as Layer 2 scaling solutions, cross-chain bridges, blockchain wallets or other applications. Almost no projects focus on the most important part of the entire Bitcoin ecosystem - Bitcoin mining.

Mining, the process by which miners use intensive computing power (also known as hash rate) to solve complex cryptographic puzzles to verify and protect blockchain transactions, requires a lot of hardware equipment, namely GPUs. And this is the core of Prosper's rebranding.

Prosper's strategic positioning: mining + long-term storage of Bitcoin

According to statistics, MicroStrategy (MSTR), a well-known cryptocurrency company, has a market valuation of $30 billion. However, because of the extensive use of Bitcoin as a company's value storage model, many people have forgotten that their core business is actually a software service company.

Prosper's goal is to become a Web 3 project that combines "Bitcoin mining" with the "MicroStrategy (MSTR) model". Unlike other traditional Bitcoin mining platforms in the past, Prosper not only intends to further utilize DeFi to provide additional liquidity and practicality for mining activities, but also intends to continue to accumulate Bitcoin in the protocol's treasury like MicroStrategy, and continue to issue rewards to the community that supports Prosper, building a flywheel around the growth of Bitcoin value.

Prosper 2.0: From DeFi to aiming to become the largest computing farm on the chain

Prosper used to be an excellent on-chain liquidity platform, even before Polymarket provided DeFi services that predicted price fluctuations and the results of real-world events. With the gradual maturity of the blockchain industry in recent years, Prosper believes that now is the best time to return to its original intention and realize its ambitions.

Through the PIP-0 proposal, Prosper’s new strategic direction is to become the largest computing farm on the chain and give greater value to the token $PROS through a new mechanism.

Combining top-notch mining equipment with the best hosting services

By directly purchasing mining machines or having mining partners contribute computing power, Prosper will directly own the underlying computing power for mining and sign contracts with first-class service providers to be responsible for on-site maintenance and operation of these mining machines to ensure the efficiency and stability of mining activities.

The underlying computing power equipment continues to upgrade

Prosper not only focuses on accumulating current mining resources, but also plans to work closely with major mining machine manufacturers to continuously improve the performance and mining efficiency of mining machines, which will help increase future mining profits.

Diamond Hands Capturing Bitcoin Value

In addition to owning actual mining equipment, Prosper will also adopt a micro-strategy model to continue mining Bitcoin at cost price and hold the mined Bitcoin for a long time to enhance the stability and risk resistance of the entire project.

Re-empowerment of the Prosper Token $PROS

As a project that has been working in the industry for a long time, Prosper's token $PROS was listed on Binance, the largest cryptocurrency exchange, as a DeFi token. In October this year, in addition to the entire brand repackaging and listing, the old token functions and token economics will also be greatly enhanced.

The biggest benefit for $PROS holders is that they can get more value without paying any additional costs.

In the future, holding $PROS is equivalent to holding a Bitcoin mining machine

In the future, each $PROS token will represent a certain amount of computing power. Before the end of the year, Prosper will temporarily lock the computing power value that each token can correspond to, which is the "peg" mechanism. After that, the token supply will only change when the basic computing power increases, that is, the computing power corresponding to each token will not be diluted. (That is, for interested investors, before the end of the year may be the best time to buy $PROS)

Native Bitcoin Leverage with No Liquidation Mechanism

In other words, $PROS = N units of Bitcoin mining power, and holders can vote on protocol proposals and stake tokens to receive Bitcoin rewards. $PROS's new token economics is equivalent to allowing holders to invest in Bitcoin in a "leveraged" manner without having to worry about the risk of triggering liquidation due to market fluctuations.

In addition to staking, Prosper also intends to continue to develop use cases in other ecosystem projects and launch new applications so that the entire Prosper and Bitcoin ecosystem can continue to grow.

The potential for continued value-added growth

In past cases, similar mining tokens have achieved a transaction multiple of 3,000 times, while traditional Web 2 companies usually have a P/E ratio of about 150 times, which means that compared with the current value, $PROS tokens may have a higher market value increase space.

This can be seen from the fact that Prosper's official partner Animoca Brands recently announced that it intends to acquire more $PROS tokens from the open market.

Is now the time to discover value?

It can be seen from Prosper’s official website that Prosper has not yet launched a new APP and is currently undergoing various visual and functional renovation projects. The new token economic model and how to distribute rewards to holders are yet to be announced.

However, considering that $PROS currently has a market value of only 12 million, a circulating market value of only 36 million, and the latest valuation proposed by Prosper after market research, now may be a good time to discover value.

Official Twitter: https://x.com/prosperfi_xyz