Project name: Picasso Network

Project type: cross-chain, re-pledge (Restaking).

Codename: $PICA (natural cross-chain token)

Cryptocurrency Ranking: #489

Market cap: $67 million

Fully diluted valuation: $149 million

Circulating supply: 4.53 billion (45.34%)

Total supply: 10 billion

Project Overview:

Amid recent technological advances and collaborations in the blockchain field, the Picasso Network has demonstrated its vision as a cross-chain communication hub. Initially launched within the Kusama ecosystem, Picasso’s mission is to promote interoperability across the ecosystem and build a robust infrastructure within the Polkadot network. In parallel with this is the development of Composable Cosmos, which aims to expand the ability to transfer assets across chains and break through the limitations of a single ecosystem.

Composable Cosmos takes a major step forward in simplifying the process of establishing IBC connections to the Cosmos chain. In the past, this task was complex and time-consuming. Composable Cosmos now plays the role of a bridge, allowing the Cosmos chain to quickly join cross-ecosystem IBC activities without any upgrades or modifications.

The chain is designed to be compatible with any IBC-enabled Cosmos chain using the Tendermint consensus mechanism, and is integrated with Picasso and Ethereum, making it a central hub for IBC activity. It focuses on governance rather than hosting user-facing operations, and uses Picasso’s native token PICA rather than a separate token.

A notable feature of the Composable Cosmos ecosystem is its validator set, which is capped at 100. The Composable Foundation plays a key role here, staking PICA tokens on behalf of Picasso and managing validator rewards. Under this framework, Picasso leverages its native token PICA to establish a growth foundation covering Kusama’s Picasso parachain and Cosmos’ Composable Cosmos chain.

This study provides an in-depth analysis of the current status of the project, especially its integration with other ecosystems such as Ethereum and Solana. Among them, special attention is paid to the re-staking function launched on Solana through the Picasso-Solana IBC connection. This development is a key step for Picasso to strengthen its cross-chain interaction and expand the scope of PICA applications in the blockchain field. Recently, Picasso announced that it will launch SOL’s re-staking service on January 28.

Inter-Chain Communication Protocol (IBC) connection between Picasso and Solana

At the last Solana Breakpoint conference, the presentation of the Composable Foundation and the University of Lisbon marked significant progress in their technical cooperation. Highlights of the presentation include:

• Solana and IBC integration: Thanks to the support of Picasso, Solana is now able to join a broad cross-ecosystem IBC network including Polkadot, Kusama, Cosmos, and soon Ethereum.

• Enabling new applications: Newly released features enable new opportunities for utility and participation across different blockchain networks, allowing innovative applications such as re-staking to be implemented in connected ecosystems.

• Smooth liquidity exchange: This integration is expected to seamlessly connect Solana’s large user base and liquidity with other chains in the IBC network.

Picasso网络的这一系列整合举措不仅体现了其对创新技术的追求，也进一步加深了其在数字资产跨链互操作性领域的影响力，为区块链的去中心化金融服务领域带来了新的增长机遇。

Technical aspects:

• Customer Blockchain Solutions: At the forefront of blockchain technology, Picasso Network is overcoming a series of technical challenges encountered by blockchains such as NEAR, Solana and TRON through its cutting-edge customer blockchain solutions. These chains do not naturally conform to IBC standards - such as the ICS-23 specification. Already deployed directly on Solana, the solution introduces a provable storage mechanism that paves the way for IBC-based interactions, enabling trust-minimized bridging between chains that are not naturally compatible with IBC.

• Verifier participation mechanism: In terms of verifier participation, Picasso adopts an innovative mechanism. Those who intend to become verifiers on the customer blockchain need to participate through the pledge process with the regulatory customer contract. Once staking is successful, participants can join the pool of candidate validators. Whenever the epoch changes, the contract will select new validators from this pool, with priority given to those with the largest pledge amount.

Picasso introduces Solana’s on-chain re-staking

Picasso also introduces the concept of restaking, a mechanism originally developed by EigenLayer for Ethereum ETH, into the Solana ecosystem. Re-hypothecation allows other financial activities to be performed while maintaining the pledged status of assets. This approach has gained widespread adoption in Ethereum and shows great scaling potential in networks with mature staking culture such as Solana.

In the field of Solana, Picasso is promoting the re-pledge of SOL and receipt tokens from various SOL staking platforms. Implemented through validators on the Solana-IBC bridge, this strategy heralds a new chapter in blockchain integration. Users can deposit assets into the staking contract through the trustless.zone platform, which will then be distributed to validators on a purpose-built customer blockchain designed to bridge the gap between IBC and Solana. This innovative re-staking method not only supports the PoS consensus mechanism of the customer blockchain, but also improves the security of the Solana-IBC connection.

Picasso is broadening its Solana-IBC validator portfolio to include assets such as SOL, Marinade Finance’s mSOL, Lito’s jitoSOL, Orca LP tokens, and Solblaze’s bSOL, a significant expansion of the staking options available to users. The network’s Solana<>IBC initiative is undergoing a rigorous third-party security audit to ensure the robustness and security of its systems, and once the audit is completed, the results will be publicly released, providing necessary transparency and assurance.

代币经济学

Market cap: $67.56 million

Fully diluted valuation: $149 million

Circulating supply: 4.53 billion (45.34%)

Total supply: 10 billion

代币分配情况：

Crowdloan: Total 30% (18.1% unlocked, 11.9% locked)

Details: 50% will be released at the project’s initial token generation event (Token Generation Event, TGE), and the remainder will be unlocked in the next 48 weeks. The entire balance is available for governance; unclaimed tokens revert to the Treasury after 3 months.

Treasury: Total 18% (-/-)

Details: Funded by 75% of network fees, initially managed by the General Council and later by PICA holders.

Liquidity Mining: Total 15% (-/-)

Details: As a reward for participating in the liquidity program.

Team: 13.7% total (fully locked)

Details: Distributed over two years, with initial six-month lock-in period.

Ecosystem: Total 10% (-/-)

Details: Reward network activities, such as running an oracle.

Series A: 7% total (fully locked)

Details: 3-month lock-in period, 2-year gradual unlocking (vesting).

Partners & Advisors: 6.35% total (fully locked)

Details: Allocated over 2 years, including a 6-month lock-in period.

Assignment schedule

来源：Cryptorank.io

Between January and December 2024, the PICA token will undergo a series of unlocking events that will have an impact on its total supply and market capitalization. This pattern includes:

1. Regular crowd loan unlocking: 31.26 million tokens (approximately 0.31% of the total supply) are unlocked almost every week. These ongoing releases are intended to support crowdlending participants.​

2. Larger unlocks in important rounds: At several key moments throughout the year, significantly larger unlocks will occur, with 108 million tokens released each time (approximately 1.08% of the total supply). These tokens will be distributed to different stakeholders:

- Team: Release some of the team's allocations to reflect their ongoing contribution to the project.

-Series A investors: Investments from Series A investors will be unlocked, indicating their early support for the project.

- Partners and Advisors: This group is critical for providing strategic guidance and building partnerships, and they will also receive a portion of the tokens.

Token usage cases

The PICA token plays a key role in the Picasso and Composable Cosmos ecosystem, covering multiple aspects of functionality:

1. Staking shards on Picasso: 25% of Picasso’s handling fees will be used to reward shard producers for block production, and the remainder will flow into the community governance reserve.

2. Oracle staking through Apollo: By staking PICA tokens, users can run Oracle nodes, thereby improving the security of network data.

3. Composable Cosmos Staking: PICA tokens are used to maintain the security of the Composable Cosmos chain, marking its dual utility in the Kusama and Cosmos ecosystems. The network requires 1 billion PICA tokens for validator staking to provide network security and earn an annualized return of approximately 10%.

4. Polkadot Liquidity Staking: Composable has introduced Liquid Staked DOT (LSDOT) to generate revenue for PICA token holders through liquidity staking fees.

5. Gas Token in Picasso Ecosystem: PICA token is used to facilitate transactions and dApp operations, with fees dynamically adjusted based on network load.

6. Main trading pair on Pablo DEX: The PICA token is one of the main trading pairs on Pablo DEX to incentivize the provision of liquidity.

7. 治理：PICA代币在Picasso和Composable Cosmos的治理中扮演着重要角色，支持去中心化的决策制定。

Funding status:

1. Seed round (July 2021): Composable’s seed round was successfully completed, raising $7 million, marking an important initial stage of their financial journey.​

2. Series A (March 2022): This round of financing takes an important step forward, raising a total of more than $32 million. The strong lineup of investors includes Coinbase Ventures, Blockchain Capital, Figment Capital, Fundamental Labs, GSR, Jump Capital, New Form Capital, NGC Ventures and Krypto Ventures, etc., reflecting their firm confidence in the project.

Additionally, Composable recently entered into partnerships with two strategic partners to enhance its capabilities and facilitate growth across the ecosystem: DAO5 and Santiago Santos.

About DAO5: DAO5 is a developing cryptocurrency fund moving towards a DAO structure designed to co-manage assets by portfolio founders. The fund is led by key leaders in the crypto space such as Tekin Salimi and is supported by several advisors, details of which can be found on their website.

About Santiago Santos: Santiago R. Santos is a distinguished expert in finance and crypto, known for his significant contributions to investment firms and his significant influence in the crypto space. He co-hosts "The Empire Podcast" with Blockworks' Jason Yanowitz ", providing key insights into industry trends.

Statistical data:

截止到2024年1月23日：

From a quick review of the statistics, we can clearly see that, while not outstanding, the network is highly active, processing an average of over 500 transactions per day, with an average transfer amount of $1.7k. It will be interesting to watch as these metrics may change with integrations with Solana and Ethereum.

Current integrations:

Picasso has successfully achieved interoperability with the following ecosystems, enabling seamless data transfer, asset movement, and smart contract interaction between Picasso and these ecosystems. Here are the sources of relevant ecosystems:

Table source: Picasso Asset List

Bullish fundamentals:

1. As Solana integrates with Polkadot, Cosmos, Kusama and Ethereum via IBC, these connections are expected to enhance the value for holders of the $PICA token, positioning PICA as the core of the growing cross-chain landscape.

2. Strong partnerships and successful financing rounds, including a $7 million seed round and a $32 million Series A round, reflect investors’ strong confidence in the project and the support of the strategic network.

3. The multi-faceted role of PICA tokens in the ecosystem in terms of staking, governance and liquidity enhances its intrinsic value and appeal.

4. The team continues to work hard to explore new features, especially in the areas of interoperability and trustless DeFi, demonstrating its commitment to evolving and adapting to the needs of the blockchain industry.

Bearish fundamentals:

1. The practicality and technical complexity of the project may be too complex for new and casual users, potentially resulting in reduced participation. This risk may increase if competitors introduce similar but easier-to-use features. Although there are currently no related re-staking projects for SOL, this market may soon attract competitors.

2. 对于众贷参与者未领取的$PICA代币的管理不善，主要是由于对领取期限的信息传达不足导致了贡献者的不满。Picasso的OpenGov论坛社区在撤销将这些代币分配给国库的决定上推动，这是影响项目社区关系立场的关键问题。

3. CEO Omar Zaki’s past disputes with the US SEC and association with controversial projects (such as Bribe Protocol) have brought reputational challenges. The issue was important enough that it led to the departure of some key team members, including former CTO Karel Kebab.

4. Large-scale token unlocks are expected to exert significant downward pressure on the market.

references:

Picasso Protocol (n.d.). Picasso Protocol . Picasso. Retrieved January 23, 2024, from:  https://picasso.xyz/

Picasso X Account. (n.d.). Picasso - Company Socials. Retrieved January 23, 2024: https://twitter.com/Picasso_Network

Composable Finance (n.d.). stats.composable.finance -  Retrieved January 23, 2024, from: https://www.composable.finance/

Picasso Statistics. (n.d.). Picasso - Company Socials. Retrieved January 23, 2024: https://stats.composable.finance/d/b7ec4077-af14-4ac9-8abc-327ce6adecb3/composable-finance-stats-v1-1?orgId=1&refresh=1h&from=now-30d&to=now

Picasso Documents and tokenomics: https://docs.composable.finance/networks/picasso-parachain-overview/

Picasso medium page: https://medium.com/@Picasso_Network

Picasso Vesting Schedule and Unlock Events: https://cryptorank.io/price/picasso/vesting