Original title: (DeSci: How to Challenge the Existing Scientific Research System with On-chain Meme?)
Original author: Ac-Core, YBB Capital Research
TL;DR
● The birth of DeSci hotspots mainly stems from Binance Labs' investment in BIO Protocol, CZ's statements regarding biotechnology, CZ's discussion of DeSci with Vitalik, and a16z's lead investment in the DeSci project AminoChain.
● If we view DeSci as a Meme, its fundamentals require a strong narrative and influential figures to stand up for it compared to other directions like zoos, AI, and art, while also possessing greater potential to break boundaries.
● From a practical point of view, the current economic scale that the DeSci market can provide is still insufficient to support research funding expenditure. Currently, DeSci is still in the early stage of the 'market value dream', and speculative hype is a necessity.
I. Background
1.1 What is DeSci?
The more official explanation, DeSci (Decentralized Science), aims to build a public infrastructure for scientific research through the fair and equal use of Web3 technology, focusing on addressing issues such as peer review, research funding, intellectual property management, and data transparency and review mechanisms.
In simpler terms, DeSci imparts the pure speculation of the crypto space to the zero speculation of scientific research. However, DeSci is not a new concept that emerged this year; VitaDAO, which focuses on funding and promoting early longevity science research, was established back in 2021 and even received investment from the world-renowned pharmaceutical company Pfizer. Yet, DeSci has historically developed in a lackluster manner without market attention until recently when Binance Labs announced investment in BIO Protocol, and CZ participated in the DeSci conference with Vitalik, which brought this track back into the public eye.
1.2 The birth of hotspots
1. Binance Labs exclusively invests in BIO Protocol:
BIO Protocol can be seen as a crowdfunding platform for scientific projects, raising funds through token sales and using those funds to support and promote the development of biotechnology projects. Intellectual property exists in the form of IPT (Intellectual Property Token) under the Molecule protocol and is shared among participants.
BioDAO will reinvest the revenue from intellectual property and product sales back into the BioDAO treasury to fund the next generation of R&D projects. Binance Labs stated: 'BIO can be viewed as the Y Combinator of on-chain science.' Currently, the total value of the top 100 startups under Y Combinator has exceeded $100 billion, including well-known companies such as Airbnb, Coinbase, Stripe, Reddit, etc. 2. CZ's new direction speech includes biotechnology and discussions on DeSci with Vitalik.
CZ stated during his first speech after being released at the 2024 Dubai Binance Blockchain Week that he mainly does two things now: one is Google Academy, and the other is investing. Investment is primarily focused on the three areas of blockchain, artificial intelligence, and biotechnology.
Subsequently, CZ attended the DeSci Day event held by Binance in Bangkok and discussed DeSci with Vitalik. This move sparked heated discussions in the market, and the prices of various DeSci project tokens surged.
3. a16z leads the DeSci project AminoChain:
Recently, AminoChain announced that it has secured $5 million in seed funding led by a16z, bringing its total funding to $7.8 million, including investments from private funds like Cercano. Its vision is to build a decentralized 'biobank' on L2, allowing researchers to easily find and access samples, while patients retain control and receive compensation for the use of their data.
Image source: X(@BinanceLabs)
II. The real needs and true use cases of DeSci
2.1 Serious DeSci: The funding needs of scientific research
According to the 2024 report from the National Science Foundation (NSF) and the National Center for Science and Engineering Statistics (NCSES), the estimated research spending in the US for 2023 is $710 billion, with R&D spending in 2022 nearing $700 billion, where corporate R&D dominates, accounting for about 78% of R&D investment from the private sector, especially in fields like information technology and pharmaceuticals.
In 2021, besides China and the US, the other countries performing best in research spending were Japan ($177 billion), Germany ($154 billion), and South Korea ($120 billion). In 2021, US R&D spending was equivalent to 3.5% of GDP, while Israel and South Korea had R&D intensities exceeding 4%. Taiwan, Japan, and Germany were between 3% and 4%, and the UK and China were above 2%. In 2022, US higher education R&D investments ranked second, only behind business. Funding for life sciences research is the highest in the science and engineering fields, reaching $42 billion (44% of the total), mainly from the Department of Health and Human Services (data see expanded link 1).
Image source: See expanded link 1
In 2023, China's R&D expenditure exceeded 3.3 trillion yuan (approximately $458.5 billion), an increase of 8.1% year-on-year.
Among them, the investment in basic research is 221.2 billion yuan, an increase of 9.3%. Compared to previous years, China has maintained a high growth rate in recent years, especially in high-tech and basic scientific research, reflecting the driving force of the strategy of becoming a technological powerhouse (data see expanded link 2).
The growth of research spending comparison: China's growth rate of research funding is relatively fast, particularly in basic research, demonstrating the national commitment to technological innovation and emphasis on high-end technology fields. Although the absolute amount is higher in the US, its growth rate is more stable, focusing on long-term technological frontier areas.
From the practical application of DeSci, it currently remains more at the narrative stage of Meme, making it difficult to directly promote technological development. Whether through donation driven by narrative empathy or market liquidity brought about by speculative trading, the existing economic scale is still far from sufficient to support the vast funding needed for research. Therefore, DeSci is still in the early stage of the 'market value dream'. For DeSci to truly land in the future, it needs to meet regulatory requirements and gain the sustained support of influential figures.
2.2 The real-world academic finance case of DeSci: the South Korean LK-99 room-temperature superconducting incident
Image source: Taj Quantum - American Taj Quantum official website
2023 has been dubbed the 'Year of Room-Temperature Superconductors', mainly due to several studies claiming to have discovered room-temperature superconductors, which sparked widespread attention in the global scientific community. However, as subsequent investigations deepened, these findings were proven to have serious issues, even leading to academic scandals.
The event began when physicist Ranga Diaz from the University of Rochester in New York published a paper in (Nature) magazine, claiming to have discovered a material that could achieve superconductivity at room temperature. This discovery was initially seen as a major breakthrough, as the emergence of room-temperature superconductors could fundamentally change the technological development of energy transmission, medical devices, and electronic components. Typically, superconductors need to work at extremely low temperatures (below -196 degrees Celsius), and a superconductor that can operate at room temperature has been a goal pursued by the scientific community. However, Diaz's research faced significant skepticism from the outset, especially as his academic reputation had been controversial due to similar research in 2020.
Back in 2020, Diaz quickly rose to fame with a paper on room-temperature superconductors, but that paper was retracted by (Nature) magazine two years later. Nevertheless, Diaz published similar research again in 2023, drawing renewed attention. However, many peers accused him of data manipulation and even suspected plagiarism of doctoral thesis content. Several well-known media outlets, including the (Wall Street Journal) and (Science) magazine, launched investigations into him, revealing issues in his research. The University of Rochester also initiated multiple internal investigations against Diaz, eventually confirming with external experts that his paper had 'data reliability issues', leading to the revocation of his authority to manage his laboratory and students. In November 2023, (Nature) magazine officially retracted his latest paper on room-temperature superconductors.
The insider story behind this scandal is gradually surfacing. According to an investigation by the (Nature) magazine news team, members of Diaz's research team did not observe the critical superconducting phenomenon 'Meissner effect' during the experiment but received a manuscript from Diaz within a short time and were asked to cooperate in submission. These graduate students had doubts about certain experimental data in the paper, but under the authority and pressure of their mentor, they ultimately did not publicly question these issues. Subsequently, more reviewers and experts expressed skepticism about Diaz's experimental data, finding that it may have been tampered with.
While Diaz's first paper faced skepticism, he claimed to have discovered room-temperature superconductivity in another material (a compound of lutetium and hydrogen, LuH). However, the measurement data of this study is also fraught with issues, as many students pointed out systematic errors in the experimental results, and they even felt they were 'deceiving themselves'. Faced with increasing skepticism, Diaz still chose to push for the publication of the paper, but 8 of the 11 co-authors eventually decided to request a retraction.
This series of academic scandals not only dealt a severe blow to Diaz's reputation but also affected the entire research field. The career prospects of many young scientists have become uncertain due to their involvement in these studies, and trust in academia has been damaged. Paul Canfield, a physicist at Iowa State University, commented, 'This scandal has harmed the careers of young scientists, especially those in the field of superconductivity.'
At the same time, another main player in the room-temperature superconducting field, the South Korean LK-99 team, has also become embroiled in similar controversies. Although they claimed to have discovered a new 'room-temperature superconductor'—PCPOSOS in 2024, many in the scientific community expressed doubts about the authenticity of their research. The data presented by the team at academic conferences was similar to previous LK-99 research and lacked sufficient verification support.
Image source: Bloomberg
Following the announcement of breakthroughs in superconducting technology, some South Korean stocks related to superconductors attracted a large number of investors. Korean small-cap stocks like Duksung Co. and Sunam Co. hit the upper limit for the third consecutive trading day, rising by 30%. Sunam Co. surged approximately 260% over the past six trading days, while Duksung rose 170%. Mobiis Co. rose 30% on Thursday, and Shinsung Delta Tech Co. briefly rose 21%, hitting an all-time high.
Later in the event, the Korean Superconductivity Society's verification committee stated that LK-99 did not exhibit the Meissner effect and could not be proven to be a superconductor. This news led to fluctuations in Chinese superconducting concept stocks, with Farsens and Zhongfu Industrial's stock prices plummeting. The former has not ventured into superconducting technology, while the latter only provided venue and equipment support. Meanwhile, the stock price of American Superconductors fell by 29%, and Sumitomo Electric Industries also saw a decline due to poor performance.
III. Overview of the DeSci ecosystem
3.1 BIO Protocol
The BIO Protocol, which has received investment from Binance Labs, has been dubbed the 'Y Combinator of on-chain science', aimed at incubating early-stage companies and providing funding and resources to accelerate project development. According to (Deep Tide TechFlow), the main components include BioDAO, curation systems, liquidity and IP transformation, and incentive mechanisms.
Image source: Deep Tide TechFlow - Interpretation of BIO Protocol - BioDAO
· $VITA (VitaDAO): Founded in 2021, VitaDAO focuses on funding and promoting early longevity science research aimed at extending human healthspan, managed by $VITA holders.
· $RSC (ResearchCoin): Used to reward users for their contributions on the ResearchHub platform, aimed at accelerating scientific research by incentivizing contributions within the community. Anyone can earn $RSC by sharing, curating, and discussing academic science within ResearchHub.
· $ATH (AthenaDAO): AthenaDAO is a decentralized community composed of researchers, funders, and advocates dedicated to advancing women's health research, education, and funding.
· $GROW (ValleyDAO): A decentralized organization focused on anti-aging drugs and longevity projects.
3.2 Pump.Science
The Solana ecosystem DeSci platform Molecule DAO is a Meme launch platform introduced at the Solana Breakpoint 2024 conference, Pump.science will issue Meme tokens representing pharmaceuticals on Pump.fun, with the relevant concept tokens being:
· $RIF: Rifampicin, as stated on the official website: 'Rifampicin is an antibiotic that has gained attention for its remarkable effects on aging. In microorganisms like Caenorhabditis elegans (a model organism often used in aging research), rifampicin has been shown to activate the cells' natural defense mechanisms against stress and damage. Imagine it as a 'cell coach' that encourages cells to stay healthy and resilient by protecting them from harmful oxidative stress and maintaining the quality of intracellular proteins. These protective effects help the worms live longer and healthier.'
· $URO: Urolithin A, as stated on the official website: 'This is a compound that your body produces when you consume foods rich in ellagitannins (like pomegranates). What makes Urolithin A special is its ability to perform a 'spring cleaning' for your cells. It helps clear out old, dysfunctional mitochondria (the energy factories of cells), allowing fresh, healthy mitochondria to thrive. This process, known as mitophagy, has been shown to prolong the lifespan of Caenorhabditis elegans because it makes cells more efficient and vigorous.'
3.3 The concept of donations
· $Scihub: An unofficial token donated by @0xAA_Science, aimed at supporting open-source research paper websites. The token direction comes from the Sci-Hub shadow library and is merely a community Meme token. Sci-Hub is a non-profit, non-governmental website that provides free access to academic paper downloads, integrating a series of other publicly accessible English and Chinese academic resources on the internet, allowing one-stop search and free download of domestic and international literature, patents, books, and other academic materials.
3.4 DeSci Quantum Meme
· $ANTI- Antitoken and $PRO - Protoken: The two form a pair of tokens, expressing support and opposition to Meme Tokens, founded by algorithm engineer and mathematical physicist @sshmatrix_, with 1 $ANTI = 1 $PRO rising and falling together.
IV. How long can the elixir of life on the chain last?
DeSci is not a concept that emerged this year; its sudden popularity is primarily influenced by the short-term investment of Binance Labs in BIO Protocol, CZ's discussion of DeSci with Vitalik, and a16z's leading investment in the DeSci project AminoChain, all of which have contributed to the market's need for 'pumping as justice'. Looking at the current market, DeSci as a whole still primarily drives with Memes, but its fundamental attributes differ from those of other Meme logics.
● Different from other Memes: Compared to other directions like AI, zoos, and art, DeSci, in its attributes, requires a strong influential figure to 'sell' it; perhaps relying solely on traffic within the circle is insufficient and requires real persons with 'scientific research' attributes from outside the circle.
● The valuation of leading projects needs to be continuously elevated: Currently, there are no leading projects in the DeSci track with a market value of 1 billion, compared to other Meme tracks, it still holds considerable market potential, and mainstream centralized exchanges have yet to list related tokens, with no large-scale financing occurring at the primary level.
● DeSci may have greater potential to break boundaries: The current PVP market is fiercely competitive, but if an outsider with a 'scientist' background uses the narrative of DeSci to make donations or raise funds, there will be more room for development. Similar to the crowdfunding for the rare original version of the US Constitution, $PEOPLE, and the NFT auctioned at Christie's for $69.34 million (per day: the first 5000 days), Musk took $DOGE to the moon. DeSci and these cases exhibit similar core logic, and the marketing effect is comparable to Jia Yueting presenting a PPT plan to create cars in the crypto space.
Expanded link:
(1) https://www.nsf.gov/nsb/news/news_summ.jsp?cntn_id=309719&org=NSB
(2) https://english.www.gov.cn/news/202403/05/content_WS65e6ff4dc6d0868f4e8e4b66.html
This article comes from submissions and does not represent the views of BlockBeats.
