What is Prosper?

Prosper is a crypto project created to bridge institutional-grade Bitcoin mining power on-chain. According to its founders, the project helps Bitcoin remain decentralized and more effective. How does Prosper achieve this?

Over the years, as Bitcoin gained traction and more people were introduced to the decentralized ecosystem, transactions became slower, just like cars stuck in traffic. As the project became more popular, more “cars” were introduced into that “traffic.”

This led to slower transactions and possibly monotony, like the banking system, which could sabotage the whole effort of the decentralized ecosystem in the first place. Prosper was created to serve as a support system by adding more computers to the existing networks of computers worldwide. Like adding more lanes to a highway, the “cars” can now move seamlessly, making Bitcoin faster and cheaper.

History of Prosper

Prosper has been in development since 2021. The development team is comprised of cryptocurrency experts headed by John Doe, Jane Smith, and Alice Johnson. John and Jane are the co-founders, while Alice is the head of community and governance.

They launched their initial version after raising $10 million in a seed funding round held in January 2024, led by well-known blockchain investors. This integrated bitcoin mining power directly onto the blockchain, increasing transparency and the ability to trust it.

This innovative act spread like wildfire, leading to them securing an additional $20 million in a Series A funding round led by top venture capital firms. This happened in early May 2024.

With this recent funding, this project started gaining traction as more people were introduced into its ecosystem. So, the team worked hard to increase its mining power and infrastructure. In June 2024, it partnered with leading industry service providers to optimize its mining operations.

Features of Prosper: Decentralized Bitcoin Mining, Tokenized Hashrate, Partnerships with Industry Leaders, Transparent Operations

Decentralized Bitcoin Mining

Here’s where things get interesting. In a normal system, mining occurs in a single infrastructure, but Prosper also decided to make their structure decentralized. This feature allows the community to participate in Bitcoin mining without owning or managing mining hardware.

Users can earn mining rewards by just holding Prosper tokens. The underlying asset is verified and decentralized as it is based on the on-chain mining power of Bitcoin. The structure integrates mining power into the blockchain and allows the community to participate and own the system.

Prosper managed to construct a model that enables PROS holders to earn at a rate per power extracted or hashrate-per-token. Since PROS holders don’t use hardware or technical mining capacities, the PROS token is basically a tokenized hash rate. That way, each user knows the amount of mined Bitcoin they are entitled to, based on the amount of tokens they hold.

Tokenized Hashrate

Prosper incorporates an accretive hash rate-per-token, which is a helpful token model with Prisoner’s Flywheel reward model.

Since Prosper is being funded to build industrial-level mining rigs, it would mine Bitcoin tokens. The mined BTC would then be used to reward active participants and increase the treasury. The rewarded participants would then re-invest some of their rewards for greater rewards.

It connects the token owners directly to the reward of mining the asset by purchasing a hashrate using those tokens.

Transparent Operations

Another notable feature of Prosper is its transparent operations. Prosper enables transparent operations in the sense that all the participants can view and participate in the mining activity.

Users can check the live hash rate, confirm the mining rig, and monitor mining capacity. All these are possible with the aid of partnerships and integrating service providers.

Core components: Accretive Hashrate-Per-Token and Hashrate Operations

Accretive Hashrate-Per-Token

This aspect ensures that every mining effort (hashrate) is rewarded with a token. And this set mechanism is in place to ensure that no one is over or underpaid. This aspect enables the token holders to directly participate in the benefits of the mining operations since their tokens get value from the hashrate.

To ensure that the hashrate-per-token is consistent and assertive, the project uses two phases of development. The first phase is Hash rate backfilling, while the second phase is scaling the protocol.

Phase 1 is the foundation. During this period, the hash rate would come live, and the hashrate pegged to each token would be decided. So how would the hashrate peg be gotten?

It’s simply to figure out the capacity of the mining rig and the hashrate of the infrastructure, then that figure is shared among the amount of PROS tokens. That would allow the project to know what each token is worth in mined BTC and how much reward each holder is entitled to.

Phase 2 is the development phase. This is where tokens would be given utilities like voting, token migration, and a unified token contract. In this phase, the project wouldn’t arbitrarily start minting tokens without the holder’s consent, drastically reducing the selling pressure.

Hashrate Operations

This component includes the entire cycle of hardware ownership and outsourcing to top service firms to enhance their service. Essentially, this is to manage the network to maximize the hash rate and achieve regular cycles.

Three components are necessary for this smooth running to occur. They are Hardware hosting, Bitcoin production, and Monitoring miners.

Hardware hosting can be likened to renting a space for machines and production to take place. While the hardware is owned by the Prosper DAO, the hardware hosters take care of the physical infrastructure. They handle the cooling, internet, security, and couplings so the hashrate can be viewed live.

When the hardware is operational, the BTC it produces is used to pay off service providers and settle operational costs. Whatever is left is transferred to Prosper’s smart contract, which distributes the leftovers between the Treasury and staking rewards.

Finally, the equipment needs to be monitored, and the hashrate needs to be consistent. This ensures the hashrate doesn’t fall below the pegged rate per token.

What is the PROS token?

Source: Medium

The PROS (PROS) token is a native token for users of the Prosper project. It is meant for staking, governance, and rewards and was created to be compatible with the Ethereum and Binance chains.

The PROS token has a total supply of 100 million, with a circulating supply of 51.39 million.

The project allocated 4% (4 million) to seed funding, 5% (5 million) to strategic funding, 3% (3 million) to private funding rounds, 7% (7 million) to public funding, and 0.625% (625,000) to pre-sale rounds.

30% (30 million) is allocated to staking rewards, and 5% (5 million) is focused on community building. 10% (10 million) is for marketing efforts, and 12% (12 million) is for developing the ecosystem.

10% (10 million) is in reserve, and 13.38% (13.38 million) is allocated to the team and advisors.

Is PROS a Good Investment?

The PROS Tokens allow individuals to mine Bitcoin. Since Bitcoin is the pioneer crypto project, this notion has great appeal to enthusiasts.

Participation in BTC mining would allow holders to take advantage of Bitcoin’s ecosystem and price movement, which would definitely appeal to crypto investors.

Risk Analysis

Advantages

Bitcoin’s mining has been centralized because of expensive mining rigs, but Prosper guarantees that BTC mining will be decentralized. This now implies that the community can participate and own the mined BTC.

Disadvantages

The whole structure of Prosper hinges on how much BTC it can mine. If there are any issues with the mining operation, the PROS token will be trapped in a downward spiral.

The project claims to be decentralized and community-owned, but a large portion of tokens was reserved for institutional funding. This makes true decentralization difficult if centralized powers begin to control the project.

Challenges

Collaborating with service providers to maintain a consistent hash rate throughout the year will be challenging. Since the project is exposed to BTC, a negative BTC price movement would also affect PROS.

The legal framework for Bitcoin and other crypto projects would also challenge Prosper. It may face compliance challenges while maintaining the protocol’s security against cyber threats.

Competitive Analysis

Prosper and Poolin are projects created to make Bitcoin mining more accessible to a broader audience.

Prosper is a DAO-governed protocol that incentivizes miners with tokens for each unit of Bitcoin mined. Poolin is a traditional mining pool service that offers a variety of cryptocurrencies for mining.

Prosper’s target audience is retail investors seeking exposure to Bitcoin Mining, while Poolin is focused on individual miners and mining farms.

Prospers utilizes smart contracts to reward Bitcoin miners, creating a decentralized mining ecosystem. While Poolin operates as a traditional mining pool without any token as a reward for its miners.

Prosper is an emerging player focusing on an innovative yet decentralized approach to Bitcoin mining. Poolin is an established player with a large market share. It prides itself on being a reliable mining option for numerous cryptocurrencies.

How Can You Own PROS Tokens?

Users can follow a simple process to own PROS tokens and become a part of the PROS ecosystem.

Setup a Wallet

One way to own PROS tokens is to purchase them through an exchange. For this, users can create a Gate.io account, complete the KYC process, and add funds to the account to buy the token.

Utilize the PROS Tokens

Once users have acquired PROS tokens, they can explore the PROS ecosystem by participating in mining operations and some communal activities.

Take Action on PROS Coin

You can trade PROS tokens here.