On December 23, 2024, Binance announced the launch of Bio Protocol, here are some indicators about the tokens:
1. Project Introduction
BIO Protocol is a platform for funding and commercializing decentralized science (DeSci), unlocking opportunities for biotechnology innovation and obtaining scientific funding.
BIO enables a global community of patients, scientists, and biotechnology investors to co-fund, build, and own tokenized biotechnology projects and intellectual property (IP). It primarily aims to address the following issues:
Scientific Funding Issues:
Time-consuming funding process: Scientists spend up to 80% of their time applying for funding, impacting valuable research and slowing progress in critical areas.
Valley of Death: Due to high risks, resource gaps, and lack of support, many promising early discoveries never achieve commercialization, hindering advancements in biotechnology.
Centralized funding: Due to funds being concentrated in a few geographical centers, most scientific talent in the world remains undeveloped.
Complex Intellectual Property and Licensing Barriers: Fragmented intellectual property ownership and challenging licensing agreements hinder collaboration and slow down biotechnology innovation's market entry.
Low Patient Engagement: Most research is conducted outside of the patient community, leading to misaligned incentives between scientists and patients.
BIO addresses issues in the following ways:
Decentralized Funding: Allows anyone to invest in promising biotechnology projects.
Capital Efficiency: Pooling resources (patient data, capital, workforce) to reduce costs of biotechnology innovation.
Diverse Investment Portfolio: BIO bundles investments in biotechnology projects together to reduce risks in biotechnology investments through diversification.
Global Talent and Capital Pool: Enables scientists, researchers, and investors around the world to contribute labor or capital for specific therapeutic areas or drugs.
Shared Intellectual Property Ownership: Represents shared ownership of biotechnology DAOs and scientific intellectual property as tokens.
Liquidity Market: Provides early liquidity for biotechnology assets that traditionally lack liquidity.
Open Rights: Eliminate gatekeeping in scientific funding and decision-making.
2. Team Introduction
In terms of the team, Paul Kohlhaas is a prominent figure in the field of decentralized science (DeSci). In addition to BIO Protocol, he is also a co-founder and CEO of the Molecule protocol.
Molecule is a decentralized platform based on blockchain technology aimed at connecting researchers, funders, and intellectual property holders, promoting funding and innovation in scientific research through decentralized means. It focuses on utilizing Web3 technology to establish new economic models for areas like academic research and drug development. Paul has an economic and technical background and has long been dedicated to exploring the application of blockchain technology in biotechnology and scientific research.
His vision is to liberate scientific research from traditional monopolistic models through open protocols and incentive mechanisms, enabling more people to participate in scientific progress while ensuring fair returns for scientists. As a proponent of the DeSci movement, Paul Kohlhaas often speaks at international conferences, advocating for decentralized means to address inefficiencies and unfair funding distribution in scientific research. His work has garnered widespread attention in decentralized technology, open science, and biotechnology, driving the rapid development of the DeSci ecosystem.
3. Ecosystem Introduction
(1) BioDAO Launchpad
8 DAOs have undergone the first iteration of the BIO acceleration program, with a cumulative market value exceeding $300 million.
Recently launched BioDAO received 13 times oversubscription, raising over $6.8 million in initial funding.
Launchpad Traffic
(2) Accelerating BioDAO Tools
BIO is supporting individuals and communities in successfully establishing and launching BioDAO before entering BIO Launchpad, backed by active support in legal and governance frameworks, branding, and Web3 tools.
In addition, BIO supports BioDAO by closely collaborating with Catalyst and Pump.science to raise funds for IPT, finance experiments, and deploy AI agents targeting their research topics.
$7.37 million has been invested in research, creating a tokenized IP portfolio for these DAOs, currently valued at over $43 million.
(3) Liquidity Protocol - Guided by BIO Genesis
Total Value Locked (TVL): Over $50 million in BioDAO tokens and ETH to create liquidity for DeSci.
Ecosystem Token Holders: Approximately 29,800
Token Genesis Traffic
Protocol Traffic
4. Technical Details
BIO brings cutting-edge DeFi mechanisms to DeSci, drawing on governance and liquidity mechanisms from platforms/protocols like Pump.fun and Virtuals.
The core of BIO is its launchpad and liquidity protocol, allowing the BIO community to decide which DAOs receive support in the form of funding, liquidity, and incentives during the launch phase and throughout the DAO lifecycle.
BIO Launchpad is divided into three different phases:
Governance: BIO holders vote on whether to allow projects to launch through the BIO protocol. Curators donate their BIO commitments to BioDAO they consider promising.
Acceleration (Funding): This phase allows projects to raise their first funding from users. This can be achieved through auctions or joint curve mechanisms.
Separation (AMM Liquidity): The final phase releases the project to the public market supported by deep on-chain liquidity pools. BIO Protocol acts as a liquidity engine through its BIO/BioDAO liquidity pools.
5. Funding Situation
BIO Protocol has undergone multiple rounds of private and public fundraising:
Before the seed round, the project raised $900,000, with a valuation of approximately $35 million.
In the seed round, the project raised $1.4 million, with a valuation of approximately $6.9 million.
Public fundraising: The public fundraising process is the public BIO Genesis auction. It consists of 3 rounds:
In Genesis Round 1, the project raised $6.2 million, with a valuation of approximately $85 million.
In Genesis Round 2, the project raised $18.2 million, with a valuation of approximately $142 million.
In Genesis Round 2.5, the project raised $3.5 million, with a valuation of approximately $219 million.
6. Token Economics
BIO is the governance token of the BIO protocol, used for the following functions:
Governance and Decentralization: The BIO token grants holders governance rights over the BIO protocol and meta-governance rights of BioDAO within the network.
Whitelist Access: The BIO token provides holders with whitelist access to BioDAO funding rounds and permissions for tokenized IP on the network.
Curatorial Management: BioDAO selected by BIO holders is launched through BIO Launchpad and supported by the network in terms of funding and liquidity.
Connecting BioDAO: BIO represents a basket of DeSci tokens, as BioDAO within the network contributes a certain percentage of its initial token supply to the protocol in exchange for funding, liquidity, and acceleration services.
Protocol Liquidity: BIO Protocol provides liquidity through BioDAO tokens and IP tokens in its treasury, earning trading fees from the liquidity owned by its protocol.
7. Secondary Market Performance Forecast
(1) Recent Performance of Binance Launchpool
The recent performance of Binance Launchpool has varied, with the second phase of pre-market trading showing more experience, while Vana's performance post-launch has been average, displaying a continuous downward trend.
(2) Opening Funding Situation
According to the funding situation, the average hand-back multiple of the last 5 Launchpool projects is about 17x, corresponding to a market cap increase of about 10x.
(3) On-chain Lending Costs
According to the on-chain BNB lending situation, users participating in this phase of the Launchpool need the token price to reach above $1.008 to cover the lending costs during the period.
(4) Pre-market Trading Situation
The Bitget platform has opened pre-market trading, currently priced at $0.896, with a trading volume of $3.32 million. The current trading volume is low and can only serve as a simple reference.
In summary, the BIO token is expected to fluctuate in the opening short-term price range of $0.8-$1.2.
8. References
BIO Protocol (BIO)
https://www.binance.com/zh-CN/research/projects/bio-protocol
Express Delivery | Binance's 'favorite child' DeSci project BIO Protocol reveals major moves for next year.
https://mp.weixin.qq.com/s/-eBNg3O4FfXAbo6VaeS2YA
