Prosper (PROS) Tokenomika

Prosper ($PROS) is the native token of a decentralized protocol focused on democratizing Bitcoin mining by tokenizing institutional-grade Bitcoin hashrate as omnichain real-world assets (RWA). The token economics are designed to create a sustainable flywheel that aligns community participation with the growth of the underlying Bitcoin mining operation.

Issuance and Allocation Mechanism

While specific percentage breakdowns of the total $PROS token supply allocation (e.g., for team, investors, community) are not explicitly detailed, the overall mechanism is centered on backing the token supply with real-world Bitcoin hashrate and rewarding active community members.

Hashrate-Backed Model

The core of Prosper's token mechanism is its hashrate-backed structure. The protocol's foundation directly owns the underlying Bitcoin mining hardware, which backs the token supply. The foundation contracts with industry partners, such as BITMAIN, to operate and maintain these miners.

A key goal of the tokenomics is to increase the hashrate-per-token ratio over time. This mechanism aims to ensure that each $PROS token represents an increasing share of the protocol's mining power, thereby generating ongoing Bitcoin rewards for holders and increasing the protocol's resilience.

Strategic Funding and Treasury

Prosper has secured strategic funding from various backers, including Metalpha, Waterdrip Capital, BIT Mining, and Animoca Brands. This funding supports the acquisition of mining assets, such as over 7,000 ASIC miners from BITMAIN.

The protocol leverages a DAO treasury, which has access to more than 200 BTC delegated by launch partners, to unlock Total Value Locked (TVL) opportunities and support ecosystem benefits.

Usage and Incentive Mechanism

The $PROS token serves multiple utility and governance functions, primarily focused on rewarding participation and driving the decentralized governance of the Bitcoin mining operation.

1. Governance and Community-Driven Development

$PROS token holders are central to the protocol's governance structure, which operates as a Decentralized Autonomous Organization (DAO). Token holders are empowered to:

• Shape the future of the ecosystem by voting on protocol decisions.
• Contribute ideas and actively engage in open discussions.

2. Staking and Rewards

The primary incentive mechanism for $PROS holders is staking, which yields rewards in Bitcoin (BTC).

• Bitcoin Rewards: Since November 2024, Prosper has distributed over 2 BTC in rewards to $PROS token holders.
• Staking Requirement: Users can stake $PROS tokens on platforms like the Binance Smart Chain (BSC) DApp. For example, a promotional task required staking at least 20 $PROS tokens.
• Receipt Tokens: When staking $PROS, users may receive rePROS tokens, which serve as a receipt for the staked $PROS.

3. Ecosystem Flywheel

Prosper is designed around a sustainable, long-term flywheel strategy:

1. Institutional-grade hashrate is procured and managed.
2. This hashrate continues to produce Bitcoin.
3. The generated Bitcoin is used to reward the decentralized community for active participation.
4. A portion of the Bitcoin accrues to the foundation treasury to increase protocol resilience and fund further hashrate acquisition.

4. Accessibility and Composability

The protocol is designed to be accessible to both "hodlers" and "builders." The composable nature of the tokens allows developers and ecosystem projects to innovate and build new use cases on top of the Prosper protocol.

Locking Mechanism and Unlocking Time

The primary locking mechanism identified for $PROS is staking within the DApp to earn rewards.

• Staking Lock: When users stake $PROS tokens, they receive rePROS tokens as a receipt. While the staking process implies a lock-up period to earn rewards, specific details regarding the minimum or maximum duration of this lock, or the exact vesting schedule for tokens allocated to the team, investors, or the foundation, were not explicitly provided.
• Token Contract Upgrade: The project has undergone a $PROS token contract upgrade, suggesting ongoing development and refinement of the token's underlying mechanics.

Information regarding a detailed, fixed unlocking schedule (e.g., cliff and linear vesting dates) for the core team, investors, or other strategic allocations of the $PROS token was not available.