Decentralized Science (DeSci) is not a new concept; as mentioned above, research institution Messrai published a related report back in March last year. The recent resurgence of attention in this sector is closely linked to Binance's investment in BIO Protocol.
On November 8, Binance completed strategic financing for BIO Protocol, with the round and amount undisclosed. Thanks to Binance's investment, the community fundraising event initiated by BIO Protocol, known as BIO Genesis, instantly reached its funding cap, raising a total of $33 million. CZ tweeted about participating in a DeSci gathering of small entrepreneurs, where Vitalik was also present.
With Binance's substantial investment and endorsements from two major figures in the crypto space, what exactly is DeSci? Which projects are worth our attention? Let's take a look with WOO X Research.
Source: @bioprotocol
What is DeSci?
DeSci, short for Decentralized Science, is aimed at addressing various issues encountered in scientific research, including opaque funding allocation, knowledge monopolization, and the openness of research data.
Here are the main features and core concepts of DeSci:
Decentralized fundraising: Traditional research funding typically comes from governments, academic institutions, or large corporations, which may be influenced by political or commercial interests. Furthermore, funding applications often take a long time, and insufficient research project funding is a common issue. In DeSci, researchers can directly raise funds from the community through DAOs on the blockchain, for example, by using cryptocurrencies or issuing tokens for research projects, allowing more people to participate and support innovative research.
Open data and knowledge sharing: DeSci encourages research data and results to be stored on the blockchain in an open manner, ensuring transparency and immutability of the data, addressing the current issue of data closure in academia. Meanwhile, researchers can track citations and usage of their research through blockchain technology, ensuring fair distribution of knowledge.
Incentive mechanisms: DeSci typically uses tokens or other blockchain tools as incentives, allowing participants (such as researchers, reviewers, data providers, etc.) to receive rewards within the system. For example, researchers can earn token rewards when publishing papers or sharing open data, encouraging more people to share scientific results.
Improving the peer review mechanism: Traditional academic journals and peer review processes may have inefficiencies, biases, or high costs. DeSci utilizes smart contracts and distributed review systems to achieve a more transparent and efficient review process, allowing reviewers to receive fair compensation.
NFTs and intellectual property: In DeSci, research results can be minted as NFTs for tracking and managing intellectual property. For example, a groundbreaking research result can be recorded as an NFT on the blockchain, ensuring the original author's ownership and profits.
The main core point of DeSci is that blockchain project funding precedes development applications, which are often uncoupled from the raised funds, leading to surplus funds and overvaluation. In contrast, scientific research faces the opposite issue: high difficulty in fundraising and the inability to see results in a short time, with low speculative elements.
DeSci transmits hot money from the crypto sphere to the field of scientific research, with the narrative suggesting that blockchain can genuinely assist scientific projects, thereby benefiting society. This opens up imaginative space for the valuation ceiling of this sector.
Source: @_kaitoai
Representative projects
VITA
As mentioned earlier, Binance invested in BIO Protocol, which was developed by one of the founders of VitaDAO. It can be said that the current token VITA is the most legitimate DeSci project. VitaDAO was established in 2021, focusing on funding and promoting early longevity scientific research, aiming to extend human health span. Earlier, Vitalik and CZ participated in a DeSci gathering where Vitalik showcased VitaDAO's first longevity product—VD001, a natural high-dose spermidine supplement approved by the Thai FDA.
Not only supported by crypto celebrities, VitaDAO received $4.1 million in funding as early as January 30, 2023, from Pfizer's venture capital arm, Shine Capital, L1 Digital, and Balaji Srinivasan among others. Notably, this is Pfizer's first investment in the Web 3 space.
Belongs to the public chain: ETH
Current token price: 6.2
Current market cap: $160 million
Number of addresses holding the token: 4,076
Market cap historical high: Currently ATH, $160 million
$RIF
This is a meme coin launched in Pump.Science, which is a meme coin issuance platform initiated by Molecule DAO under BIO Protocol at the Token2049 Solana Breakpoint conference. However, Pump.Science is not like Pump Fun where anyone can issue a coin; the issuance must be linked to scientific research.
Currently, the only meme coins recognized by Pump.Science are RIF and URO, with RIF representing the antibiotic 'Rifampicin', primarily inhibiting bacterial RNA synthesis, having a significant sterilizing effect, and treating diseases including tuberculosis, leprosy, trachoma, and veterans' disease.
Rifampicin has been shown to activate the natural defense mechanisms of cells against stress and damage. Current experiments on worms have shown effects of extending lifespan and improving health status. Although the research is still in its early stages, it remains unclear whether Rifampicin can produce similar effects in humans, but it is an exciting research direction in the field of anti-aging therapies.
Belongs to the public chain: Solana
Current token price: 0.1705
Current market cap: $170 million
Number of addresses holding the token: 20,146
Market cap historical high: $183 million
Source: Dexscreener
$URO
This is a meme coin launched in Pump.Science and is one of the two officially certified coins by Pump.Science alongside $RIF.
Urolithin A is a compound that naturally occurs in pomegranates. Its uniqueness lies in its ability to perform a 'deep clean' for cells. It helps to remove aging and dysfunctional mitochondria, allowing fresh and healthy mitochondria to thrive. You can think of it as a reset button for cells, helping them maintain optimal functioning.
Belongs to the public chain: Solana
Current token price: 0.0466
Current market cap: $46.6 million
Number of addresses holding the token: 12,674
Market cap historical high: $60 million
Source: Dexscreener
SCIHUB
Scihub is an open-source academic paper library founded in 2011 by neuroscientist Alexandra Elbakyan to provide free access to academic papers for everyone, but it has also raised copyright concerns. In 2017, Scihub was ordered to pay $15 million to Elsevier by publishers. The founder of WTF Academy, 0xAA, purchased 22% of the total supply of SCIHUB tokens and later transferred 20% to Alexandra Elbakyan's wallet to show support for Scihub.
Belongs to the public chain: Solana
Current token price: 0.0486
Current market cap: $49 million
Number of addresses holding the token: 13,842
Market cap historical high: $73 million
Source: @SciHubFans
Conclusion: Can DeSci truly bring practical applications?
The main narrative of DeSci is the transmission of hot money from the crypto world to the scientific community, where cryptocurrencies can play a role in improving the world. However, DeSci is not a new concept that emerged this year; VitaDAO was established as early as 2021, and even world-renowned pharmaceutical company Pfizer participated in the investment. However, it has not gained much attention in the market until Binance's investment and the participation of CZ and Vitalik brought it back into the public eye, with speculative elements still outweighing actual utility.
As mentioned above, scientific research often consumes money and time, making it difficult to realize short-term results after receiving funding. The DeSci tokens driven by memes are essentially no different from previous meme coins, both representing an expression of attention economy. For a crypto market that demands immediate returns, the sustainability of DeSci remains highly questionable.
For the overall sector to have sustainability, the following conditions must be met:
Continuous endorsements from celebrities: This narrative round was initiated by crypto celebrities CZ and Vitalik. Attracting more crypto celebrities to participate will help consolidate the narrative foundation of DeSci and attract more capital and users.
Continuous fundraising activities: In the future, more fundraising cases are needed to prove investment institutions' interest in the DeSci sector. Institutional participation in building the sector's ecosystem is necessary to solidify the overall fundamentals of DeSci.
Valuation increase of leading projects: Currently, the market caps of the leading projects VITA and RIF are between $150 million and $200 million, which is still low compared to many leading projects in other sectors. If the market cap of leading projects can be raised to the $5 billion range and listed on mainstream centralized exchanges, it can drive the rise of other projects, confirming the development potential of the DeSci sector.
