PIP-0

Updated 16 Oct 2024: PIP-0 Snapshot link is available here

BACKGROUND

Two weeks ago we shared our vision for the next chapter of Prosper with the community. This is an important milestone marking the next phase of the project with a very focused goal of substantially enhancing $PROS token utilities and fully revamping protocol designs such that they are built to last.

From inception, Prosper has been known as the pre-eminent on-chain liquidity platform for bringing innovations to the DeFi ecosystem (it was one of the very first to offer on-chain liquidity pools for binary price prediction and real-world event prediction markets—two years before Polymarket gained mainstream attention). But as the industry evolved and matured in recent years, our platform’s offering created increasing concern of potential non-compliance with gaming laws for us and also our exchange partners.

Since then, we have spent many months identifying a new direction, securing mission-aligned industry partners, developing new platforms and features, and creating the right structuring that would enable Prosper to grow as a decentralized protocol going forward.

We are deeply appreciative of the community’s patience and are pleased to kick off this next chapter. This proposal looks to validate this change in strategic direction by seeking endorsement from the existing Prosper community.

PROPOSAL

Prosper is executing on a new strategic direction in the best interests of existing holders and community—bringing institutional-grade Bitcoin mining power on-chain and delivering on a very focused strategy of creating exposure to both Bitcoin miners (i.e., hashrate) and Bitcoin long-term (for more details on Prosper’s new vision, you can also refer to this announcement on our website).

Key Changes:

• Bitcoin hashrate will be contributed to the DAO to back the existing $PROS tokens
  • i.e., each $PROS token will represent an amount of hashrate going forward - details of how this peg will be determined will be released in a subsequent proposal
• Expand $PROS token utilities: access to protocol rewards in exchange for active and ongoing governance participation, use cases in other ecosystem projects, holder-only chat groups, and more
• Refresh designs and visuals for the Prosper brand
• Launch new website
• New content series that covers education on core concepts, industry updates, etc.
• Launch new app that enables holders to participate in voting and the protocol more generally

Key Considerations:

• Positive impact for Prosper and its existing holders/community: A top priority for us when relaunching the project is ensuring there’s an immediate and meaningful addition to $PROS token utilities. We believe with Prosper’s new strategy, the project is well positioned to benefit from both the fundamental changes at protocol level, and also the explosive growth of several intersecting narratives including Bitcoin, Bitcoin-based ecosystem, and RWA.
• Opportunity & size of the BTC+RWA market: Bitcoin continues to reign as the most valuable cryptocurrency with a market capitalization of ~$1.3 trillion. At the same time, Bitcoin mining is essential to the Bitcoin network, with the top U.S. listed Bitcoin mining companies having a combined market value of ~$20 billion. Despite the tremendous growth and development in the Bitcoin ecosystem, there is no Web3 project with a singular focus on hashrate tokens.
• Long-term sustainability & growth potential: Prosper is relaunching with economic and structure designs that are built-to-last. The DAO foundation will directly own the underlying Bitcoin mining hardware ensuring a fully decentralized construct, and the foundation will work with best-in-class service providers across the industry to handle hosting, on-site maintenance, and mining pool participation.

Call to Action:

All community members are strongly encouraged to participate in this vote to have your voice heard regarding this next chapter for Prosper. Your endorsement is crucial for validating this strategic update and ensuring the future success of the protocol.

Additionally, we encourage all community members to DYOR ahead of casting your vote. For more detailed information about the new chapter of Prosper, be sure to review the latest updates from https://www.prosper-fi.com/ and https://x.com/prosperfi_xyz. Community members are also encouraged to join the conversation on Telegram at https://t.me/prosperfi.