What is Prosper: The first Web 3 mining company to tokenize Bitcoin computing power
Prosper is a platform that will soon focus on re-empowering Bitcoin computing power, by bringing institutional-grade Bitcoin mining capabilities on-chain, combining the functions of DeFi, to reconvert computing power into liquidity, and bring more possibilities to the entire mining computing power industry.
Why focus on mining: A key element that has long been overlooked
Bitcoin, as the token with the highest market share in the entire cryptocurrency market, has a market capitalization of about $1.3 trillion, while the total market capitalization of almost all representative companies related to mining is about $20 billion, and they are almost all Web 2 companies. There has never been a project in the cryptocurrency system that focuses on tokenizing computing power.
Although in this cycle, we can see the explosive growth of the Bitcoin ecosystem, or the so-called BTCFi, in this pioneering stage, most of the projects built around BTC are focused on various infrastructures, such as Layer 2 scaling solutions, cross-chain bridges, blockchain wallets or other applications, and there are almost no projects focused on the most important element of the entire Bitcoin ecosystem - Bitcoin mining.
Mining, that is, the process by which miners use intensive computing power (also known as hash rate) to solve complex cryptographic problems to verify and protect blockchain transactions, requires a large amount of hardware equipment, that is, GPUs. And this is the core of Prosper's brand rebuilding.
Prosper's strategic positioning: Computing power mining + long-term storage of Bitcoin
According to statistics, the market valuation of the well-known MicroStrategy (MSTR) in the cryptocurrency market is $30 billion, and because of the large-scale use of Bitcoin as a store of corporate value, 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" and the "MicroStrategy (MSTR) model", which is different from other traditional Bitcoin mining platforms. In addition to further utilizing DeFi to provide additional liquidity and utility for mining activities, Prosper also plans to continuously accumulate Bitcoin in the protocol's treasury, just like MicroStrategy, and continue to distribute rewards to the community supporting Prosper, establishing a flywheel around the growth of Bitcoin's value.
Prosper 2.0: From DeFi to aiming to become the largest on-chain computing power farm
Prosper was previously an excellent on-chain liquidity platform, even earlier than Polymarket in providing DeFi services for predicting price movements and real-world event outcomes. Sensing 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 ambition.
Through the PIP-0 proposal, Prosper's new strategic direction is to become the largest on-chain computing power farm, and to endow the $PROS token with greater value through a new mechanism.
Combining top-notch mining equipment and best-in-class custody services
Through direct purchase of mining rigs, or by having mining partners contribute computing power, Prosper will directly own the underlying computing power for mining, and will contract with first-class service providers to be responsible for on-site maintenance and operation of these mining rigs, ensuring the efficiency and stability of mining activities.
Continuous upgrade of underlying computing power equipment
Prosper not only focuses on accumulating current mining resources, but also plans to work closely with major mining rig manufacturers to continuously improve the performance and mining efficiency of the rigs, which will help increase future mining profits.
Becoming the diamond hands for capturing Bitcoin's value
In addition to owning actual mining equipment, Prosper will also adopt the MicroStrategy model, continuously mining Bitcoin at cost price and holding the mined Bitcoin for the long term, strengthening the stability and risk resistance of the entire project.
Reempowering Prosper Token $PROS
As an early project in the industry, Prosper's $PROS token was previously launched as a DeFi token on the largest cryptocurrency exchange Binance. In October this year, in addition to the entire brand repackaging and relisting, the old token functions and token economics of $PROS will also be greatly strengthened.
The biggest benefit for $PROS holders is that they can obtain more value without having to pay additional costs.
In the future, holding $PROS is equivalent to holding a Bitcoin mining rig
In the future, each $PROS token will represent a certain unit of computing power. And by the end of this year, Prosper will temporarily lock the computing power value corresponding to each token, that is, the "pegging" mechanism, after which the token supply will only change when the underlying computing power increases, that is, the computing power corresponding to each token will not be diluted. (So for interested investors, perhaps the best time to buy $PROS is before the end of the year)
Native Bitcoin leverage without liquidation mechanism
That is to say, $PROS = N units of Bitcoin mining computing power, and holders can vote on protocol proposals and pledge tokens to receive Bitcoin rewards. The new token economics of $PROS is equivalent to allowing holders to invest in Bitcoin in a "leveraged" manner, without worrying about the risk of triggering liquidation due to market fluctuations.
In addition to staking, Prosper also plans to continue developing use cases in other ecosystem projects, launching new applications, so that the entire Prosper and the Bitcoin ecosystem can continue to grow.
Continuous breakthrough of the value-added potential
In past cases, similar mining tokens have reached trading multiples of 3,000 times, while the typical price-to-earnings ratio of traditional Web 2 companies is around 150 times, which means that compared to the current value, the $PROS token may have more room for market value appreciation.
This can be seen from the recent announcement by Prosper's official partner Animoca Brands, which plans to acquire more $PROS tokens from the open market.
Is this the time for value discovery?
From Prosper's official website, it can be seen that Prosper has not yet launched a new APP, and is currently undergoing various visual and functional renovations, and the new token economic model and how to distribute rewards to holders are still to be announced.
However, compared to the current market capitalization of only $12 million and a circulating market value of only $36 million for $PROS, and the latest valuation proposed by Prosper after market research, this may be a good time for value discovery.
