On December 23, 2024, Binance announced the launch of Bio Protocol, with the following indicators regarding the token:
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 global patients, scientists, and biotechnology investors to jointly fund, build, and own tokenized biotechnology projects and intellectual property (IP). The main aim is to address several issues:
Scientific funding issues:
Time-consuming funding processes: Scientists spend up to 80% of their time applying for funding, which impacts valuable research and slows progress in critical fields.
Valley of Death: Due to high risks, resource gaps, and lack of support, many promising early discoveries never achieve commercialization, hindering progress in biotechnology.
Capital concentration: Due to capital being concentrated in a few geographic centers, most scientific talent around the world remains undeveloped.
Complex intellectual property and licensing barriers: Decentralized ownership of intellectual property and challenging licensing agreements hinder collaboration and impede the rapid market entry of biotechnology innovations.
Low patient engagement: Most research is conducted outside of patient communities, leading to misaligned incentives between scientists and patients.
BIO addresses the issues by:
Decentralized Funding: Allows anyone to invest in promising biotechnology projects.
Capital Efficiency: Pooling resources (patient data, capital, labor) to reduce the cost of biotechnology innovation.
Diversified portfolio: BIO bundles the investment portfolio of biotechnology projects together to reduce the risk of biotechnology investments through diversification.
Global Talent and Capital Pool: Enables scientists, researchers, and investors from around the world to contribute labor or capital for specific therapeutic areas or drugs.
Shared Intellectual Property Ownership: Represents a 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
On the team front, Paul Kohlhaas is a prominent figure in the decentralized science (DeSci) field. Besides the BIO Protocol, he is also the 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 financing and innovation in scientific research through decentralized means. It focuses on leveraging Web3 technology to establish new economic models in fields such as academic research and drug development. Paul has an economics and technology background and has long been committed 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, allowing 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 inequities in funding distribution in the research field. 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, accumulating a total market value of over 300 million USD.
The recently launched BioDAO received 13 times oversubscription, raising over 6.8 million USD in initial funding.
Launchpad Flow
(2) Accelerate BioDAO Tools
BIO is supporting individuals and communities in successfully establishing and launching BioDAO before entering the BIO Launchpad, with proactive support in legal and governance frameworks, branding, and Web3 tools.
Additionally, BIO supports BioDAO by closely collaborating with Catalyst and Pump.science to raise funds for IPT, sponsor experiments, and deploy AI agents for their research topics.
7.37 million USD has been invested in research, creating a tokenized IP portfolio for these DAOs, currently valued at over 43 million USD.
(3) Liquidity Protocol - Guided by BIO Genesis
Total Value Locked (TVL): Over 50 million USD in BioDAO tokens and ETH are used to create liquidity for DeSci.
Ecosystem Token Holders: Approximately 29,800
Token Genesis Flow
Protocol Flow
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, which allows the BIO community to decide which DAOs receive support in terms of funding, liquidity, and incentives during the launch period and throughout the DAO lifecycle.
The 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 believe to be promising.
Acceleration (Funding): This phase allows projects to raise their first funds 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. The 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 funding:
Before the seed round, the project raised 900,000 USD, with a valuation of approximately 35 million USD.
In the seed round, the project raised 1.4 million USD, with a valuation of approximately 69 million USD.
Public fundraising: The open fundraising process is the public BIO Genesis auction. It consists of 3 rounds:
In Genesis Round 1, the project raised 6.2 million USD, with a valuation of approximately 85 million USD.
In Genesis Round 2, the project raised 18.2 million USD, with a valuation of approximately 142 million USD.
In Genesis Round 2.5, the project raised 3.5 million USD, with a valuation of approximately 219 million USD.
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 over BioDAOs in the network.
Whitelist Access: The BIO token provides holders with whitelist access to BioDAO funding rounds and the tokenized IP on the network.
Curatorial Management: The BioDAO selected by BIO holders is launched through the BIO Launchpad and is supported by the network in terms of funding and liquidity.
Linking BioDAO: BIO represents a basket of DeSci tokens, as BioDAOs in the network contribute a certain percentage of their initial token supply to the protocol in exchange for funding, liquidity, and acceleration services.
Protocol Liquidity: The 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 Usual projects in pre-market trading showing relatively average performance and Vana performing quite ordinary after launch, showing a continuous downward trend.
(2) Opening Capital Situation
According to funding conditions, the average hand return multiple for the last 5 phases of Launchpool projects is about 17x, corresponding to a circulation market cap increase of about 10x.
(3) On-chain Lending Costs
According to on-chain BNB lending conditions, users participating in this Launchpool need the token price to reach above 1.008 USD 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 USD, corresponding to a trading volume of 3.32 million USD. The current trading volume is low and can only serve as a simple reference.
In summary, the BIO token is expected to fluctuate in price between 0.8-1.2 USD in the short term after opening.
8. References
BIO Protocol (BIO)
https://www.binance.com/zh-CN/research/projects/bio-protocol
Express | Binance’s “favorite child” DeSci project BIO Protocol reveals big moves for next year.
https://mp.weixin.qq.com/s/-eBNg3O4FfXAbo6VaeS2YA
