PIP-1

Voting on PIP-1 will commence at 13:00 UTC on Sunday, 20 Oct 2024 on Snapshot.

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BACKGROUND

Earlier this week, PROS holders endorsed (see PIP-0 voting results here) Prosper’s new direction to deliver on a new strategy of creating exposure to both Bitcoin miners (i.e., hashrate) and Bitcoin long-term.

We now look to move another step forward on Prosper’s new vision with this community-approved mandate. As we continue to deliver on these changes, we also want to ensure that the community is actively participating every step of the way.

We are thoroughly encouraged by the community’s enthusiasm for and endorsement of Prosper’s new strategic direction and our next proposal PIP-1 looks to validate the key execution direction and mechanics as outlined in the recently published litepaper (read here).

PROPOSAL

Prosper is continuing to execute on its new strategic direction, which includes the following key changes from PIP-0 that are in progress:

• Contribute Bitcoin hashrate to the DAO to back existing PROS tokens
• Expand PROS token utilities
• Launch new web app that enables holders to participate in voting, staking, and more

Below are the key execution directions, mechanics, and features as outlined in the Prosper litepaper that include both immediate deliverables for the community, as well as designs that ensure the protocol's long-term growth potential.

Key protocol mechanics:

• Hashrate operation: bringing institutional-grade execution quality to DAO community-owned and governed Bitcoin hashrate by working alongside a number of best-in-class industry partners for all the critical aspects of bringing miners live and running at their best possible efficiency. Key service providers and partners will be announced throughout October. For details, refer to the litepaper here.
  • Accretive hashrate-per-token mechanism: ensuring the hashrate-per-token will only be accretive & always be above the minimum peg throughout the lifetime of the protocol. During the initial phase, a hashrate backfilling process will take place, with no action or cost required from existing PROS holders—Prosper and its launch partners will be contributing live hashrate to the DAO to kickoff the protocol. A minimum hashrate-per-token peg will also be determined. For details, refer to the litepaper here.
• Treasury operation: Prosper’s DAO treasury expects to continue to accrue Bitcoin holdings from the underlying miners’ ongoing production. This treasury balance can be directed at a number of purposes that would generate benefits for the DAO and PROS holders. Prosper’s core thesis is a strong conviction in Bitcoin’s long-term potential, and underpinning any potential treasury use cases is that same spirit for the benefit of the Prosper community. The priority first-and-foremost for the DAO treasury is security, followed immediately by opportunities to grow its native-BTC holding. For details, refer to the litepaper here.
• Token utilities: As part of Prosper’s new direction, a number of new token utilities are enabled for PROS tokens, including but not limited to: hashrate-backing, staking and voting rewards, proposing uses for DAO treasury, Bitcoin and broader Web3 ecosystem access, ability to participate in protocol governance. For details, refer to the litepaper here.
• Token supply: Total supply remains 100 million units of PROS. Launch partners wish to demonstrate their long-term commitment and confidence in Prosper’s new direction by committing to a fresh lock-up period of 1.5 years. A new seed fundraising round is in progress, and any PROS tokens purchased by investors will be subject to fresh lock-up and vesting period. Existing PROS holders will not be affected by any new lock-up periods—your holdings remain fully liquid. For details, refer to the litepaper here.

Key features for v1 app:

The v1 web app is expected to launch by the end of October 2024. The priority is on launching features that are core to the new token utilities and that also allow holders to start accessing the new protocol:

• Staking: Users can stake, unstake, and claim rewards via the app interface. Active participants are rewarded for their involvement in the protocol. By participating in governance and staking their PROS tokens, users are eligible to earn rewards that will be periodically distributed
• Governance: Users will be able to have their voices heard by voting on Prosper Improvement Proposals (PIP) directly on Snapshot. The app will also feature an integration with Snapshot that allows new users who have not previously voted to easily vote directly from the Prosper web app
• Protocol stats: On a dedicated dashboard page, users are able to observe the live performance metrics of the protocol’s hashrate, as well as other relevant stats such as DAO treasury balance and overall Bitcoin network stats

Call to Action:

Community members are encouraged to participate in this vote to reflect the community sentiment on our suggested execution directions. Your endorsement is important for validating the initial execution approach as we look to deliver on the longer-term vision of Prosper.

And as always, 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 litepaper and 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.

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