Prosper (PROS) tokenomics

Prosper is a decentralized protocol focused on democratizing Bitcoin mining by tokenizing institutional-grade Bitcoin hashrate as omnichain real-world assets (RWA). The native token, $PROS, is central to the protocol's governance, incentives, and long-term sustainability, particularly through its connection to the underlying Bitcoin mining operations.

Issuance Mechanism

Specific details regarding the total supply and the precise issuance schedule (e.g., fixed, KPI-driven, or combined) for the $PROS token were not explicitly disclosed in the available information.

However, the protocol is designed around a sustainable flywheel strategy intended for the long term:

1. Institutional-grade hashrate continues to produce Bitcoin.
2. This production is used to reward the decentralized community for active participation.
3. Bitcoin accrues to the foundation treasury to increase protocol resilience.

This mechanism suggests that the token's value and rewards are intrinsically linked to the performance and growth of the underlying Bitcoin mining operations, implying a performance-driven or utility-based issuance model for rewards, rather than a simple fixed schedule. The protocol aims for a hashrate-per-token ratio that will be finalized as the project progresses to full launch, ensuring each token represents an increasing share of mining power over time.

Allocation Mechanism

While a detailed token allocation breakdown (e.g., percentages for team, investors, community) was not available, the core allocation strategy centers on the Prosper token foundation and the DAO treasury.

• Foundation Ownership: The protocol's mining hardware is owned directly by the Prosper token foundation, which contracts with service providers to operate the miners. A key function of the foundation is to ensure it always owns corresponding amounts of miners and live hashrate.
• Community and DAO: The protocol is designed to be community-driven, with the DAO governance model aiming to leverage the DAO treasury's Bitcoin for ecosystem benefits.

The token is acquired by users primarily through secondary purchases from the open market.

Usage and Incentive Mechanism

The $PROS token serves multiple utility and incentive functions designed to align community participation with the growth of the Bitcoin mining operation:

Core Utility and Governance

• Governance: $PROS token holders are intended to shape the future of the ecosystem by voting on protocol decisions, contributing ideas, and engaging in open discussions.
• Hashrate Exposure: The token provides decentralized exposure to Bitcoin hashrate, allowing users to indirectly participate in Bitcoin production.
• Composability: The tokens are designed to be composable, allowing builders and developers to create innovative use cases on top of the protocol.

Incentives and Rewards

• Staking: Users can stake $PROS tokens on platforms like the Binance Smart Chain (BSC) DApp. Staking a minimum of 20 $PROS tokens is a known requirement for certain promotional activities.
• Reward Distribution: $PROS token holders receive ongoing Bitcoin rewards generated by the mining operations. Since November 2024, Prosper has distributed over 2 BTC in rewards to token holders.
• Receipt Tokens: When users stake $PROS, they optionally receive rePROS tokens, which serve as a receipt for the staked $PROS.
• Liquidity Farming: The protocol's strategic focus includes liquidity farming, aiming to unlock Total Value Locked (TVL) opportunities, with launch partners delegating over 200 BTC to the DAO.

Locking Mechanism and Unlocking Time

The primary locking mechanism identified is staking $PROS tokens to participate in the protocol and earn rewards.

• Staking Mechanism: Users must stake $PROS tokens to participate in certain activities and earn rewards. The rePROS token acts as a receipt for the staked $PROS.
• Unlocking Time: While the general concept of staking and unstaking is mentioned, specific details regarding mandatory lock-up periods, vesting schedules for team/investor allocations, or linear unlocking times for $PROS were not available in the provided data. The information confirms that the protocol is in its early stages, with a roadmap focused on expanding community-owned mining power and enhancing token utilities.