The development of the Bitcoin ecosystem is an inevitable result of historical progress;
In the 2018 global economic crisis, Satoshi Nakamoto clearly stated Bitcoin's mission at its inception: to build a new monetary system through a completely different approach, providing an alternative path to resolve the economic crisis.
So far, it can be said that Bitcoin has succeeded halfway, but to achieve this goal, there is still a long way to go. Bitcoin needs a better ecosystem, stronger consensus, and to become popular for more people to use, all of which require a combination with Bitcoin mining computing power, which is the foundation of everything;
Currently, the Bitcoin mining sector faces a series of issues:
1) High thresholds and risks:
The barriers for newcomers entering the mining market are high, not only in terms of financial investment but also in a deep understanding of the market and technology. Users have mentioned that mining is unfriendly to newcomers, which may limit the expansion and participation in the mining industry.
2) Market volatility and uncertainty:
Price fluctuations of Bitcoin and other cryptocurrencies impact the profitability model of mining. Users generally express uncertainty regarding market conditions and concerns about future crashes, which directly affect the economic returns of mining.
3) Competition and pool centralization:
Centralization of mining pools is a common problem in cryptocurrency mining. Intense competition and the centralization of pools may harm the interests of small miners.
4) Yield issues:
Although there are innovations like re-staking, Bitcoin itself does not have a natural yield mechanism like some other cryptocurrencies. This has been pointed out by users as a core issue in the Bitcoin ecosystem, affecting long-term return expectations from holding and mining.
5) Emotional volatility:
The expectations and emotional fluctuations within the community regarding the market are significant, ranging from extreme optimism to expectations of collapse, which may impact the stability of the mining industry and investor confidence.
In summary, Bitcoin mining currently presents both technical and market opportunities, but also faces challenges of high thresholds, market volatility, intense competition, and yield mechanisms. These factors collectively determine the future direction of the mining sector.
Recently, Prosper@prosperfi_xyz, which was publicly acquired and increased its token holdings by @animocabrands, a project transitioning from prediction markets to the Bitcoin mining sector, seems to be addressing these issues.
Let's see how this action can be completed——
1️⃣ Prosper: Could become the first #DePIN+ #RWA project in the Bitcoin ecosystem——
I believe Prosper's transformation direction is quite correct, as other sectors of the Bitcoin ecosystem, whether re-staking or L2 sector competition, are already thriving.
Therefore, shifting to the Bitcoin mining sector, using MicroStrategy's strategies and mining strategies to complete Bitcoin mining RWA is a good choice:
Prosper aims to achieve a decentralized protocol for community participation and ownership by bringing Bitcoin mining capabilities on-chain.
The project is looking for a unique opportunity point amidst the growing interest in Bitcoin, Bitcoin mining, and real-world assets (RWA) projects.
The project positions itself as 'web3 decentralized Bitcoin miner + MSTR'; PROS token holders can simultaneously benefit from the computing power owned by the Prosper foundation and its BTC treasury inventory;
2️⃣ Issues addressed: Enhancing community participation and ownership in the Bitcoin ecosystem——
While Bitcoin itself is decentralized, the mining process is often concentrated in the hands of a few large mining pools.
On one hand, the Prosper token foundation holds and operates mining machines through direct purchases or joint funding with mining partners; on the other hand, considering the probabilistic nature of Bitcoin mining, Prosper will collaborate with established mining pool providers to reduce production discrepancies and better monitor hardware performance. This way, Prosper can accumulate BTC at cost price and hold it long-term.
On the other hand, Prosperfi_xyz aims to further decentralize the Bitcoin ecosystem by bringing mining capability (hashrate) on-chain, enhancing community participation and ownership in the Bitcoin ecosystem, and creating a more decentralized mining ecology.
A key strategy of the project is to focus on Bitcoin mining through community governance. This means that token holders (users holding $PROS tokens) can participate in decision-making through voting, including how to use mining profits, future development directions, etc. In this way, the Prosper token foundation always ensures that it has the corresponding number of mining machines and provides real-time Bitcoin computing power, while Prosper's native token PROS can be exchanged for corresponding Bitcoin computing power.
In simple terms:
1) The computing power will continuously produce Bitcoin, part of which will serve as governance rewards for PROS holders, while the rest will be deposited into the project treasury;
2) The BTC inventory in the treasury will be decided by voting from PROS holders and will collaborate with other BTC ecosystems or DeFi projects to provide BTC TVL, allowing PROS holders to gain returns and airdrops from new projects;
3️⃣ Token $PROS economic model: 100% hashrate tokens, holding them grants Bitcoin computing power and rewards——
Prosper was listed on Binance in February 2021, with a current secondary market FDV of less than $40 million and a market cap of $12 million, classifying it as a low market cap project;
By designing the economic model of the $PROS token, Prosperfi_xyz ensures its focus on the Bitcoin mining strategy.
$PROS tokens are not only used for governance but also represent the holder's ownership of actual mining capacity (hashrate), meaning the value of $PROS is directly or indirectly related to the success of Bitcoin mining.
Clearly, this economic model reconstructs and upgrades the token's use case and value, while Prosper's partners will also lock their held PROS tokens for 1.5 years;
From the behaviors outlined above, the future development is promising;
In summary——
Prosper introduces Bitcoin mining into the DeFi space through innovative methods, providing users with new investment and participation opportunities, while enhancing project decentralization and transparency through community governance.
From the recent collaboration with @Stakestone and the announcements made;
The official statement indicates that a series of new information may be released by the end of this year, including its mining pool partners, a brand new token economic model, and the correlation rate between token value and computing power, so interested friends can pay attention;
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