BIO Protocol is a standout project in the decentralized science (DeSci) space, gaining attention thanks to backing from Binance Labs and its mention by former Binance CEO, CZ, as part of the growing DeSci trend. So, what exactly is BIO Protocol? What are its potentials and challenges? Let’s explore this project in the simplest and most straightforward way with Bnbfaucets!
What is BIO Protocol?
BIO Protocol (BIO) is a project in the decentralized science (DeSci) sector that connects a global community of scientists, patients, and investors. Together, they fund, develop, and co-own scientific research projects through decentralized autonomous organizations (BioDAOs).
BioDAO is a blockchain-based organization where scientists and health enthusiasts collaborate on medical initiatives. Through blockchain decentralization, every member collectively owns the inventions of BioDAO, ensuring transparency, fairness, and fostering greater participation in medical projects.
When BioDAO projects are successfully researched and commercialized, profits are returned to BioDAO to be distributed among contributing members. This creates an ecosystem where the community benefits collectively from science.
The project has gained significant attention as CZ and Vitalik Buterin discussed the DeSci trend at an event in mid-November 2024. They emphasized that DeSci not only provides researchers with transparent and accessible funding but also reduces reliance on large institutions, marking it as a revolutionary trend with the potential to reshape the future of scientific research.
Development Team of BioDAO
BIO Protocol is led by Paul Kohlhaas, a prominent entrepreneur in the decentralized science and healthcare sector. He has held various senior positions in major Web3 research organizations.
Paul is also the co-founder of VitaDAO, a BioDAO that raised over $5 million for longevity research. Additionally, he is the co-founder and CEO of Molecule AG, a platform that connects communities to co-fund and develop cutting-edge medical research.
Investment and Partnerships
Backed by Binance Labs, BIO Protocol pioneers the application of blockchain technology in science and healthcare, aiming to revolutionize the way scientific research is funded and developed, ushering in a new era for the industry.
Beyond Binance Labs’ investment, the project has garnered strong community support, successfully raising over $32 million across three BIO token auction rounds. Notably, this success also led to BIO’s price doubling, reflecting strong investor confidence.
Products of BIO Protocol
BIO Protocol operates as a network of BioDAOs, each focusing on specific scientific research areas, such as: Longevity research (VitaDAO), Brain health (CerebrumDAO), Synthetic biology (ValleyDAO).
Operational Process:
- Fundraising: BioDAO raises funds by selling tokens, with proceeds used to support biotech project development.
- Resource Sharing: Members contribute resources like data, capital, and effort to reduce costs and accelerate biotech product development and market release.
- Member Benefits: Research access and benefits are distributed proportionally based on the number of tokens held. More tokens mean greater benefits.
- Revenue Reinvestment: Revenue from initiatives is reinvested into BioDAO’s treasury to fund new research and projects, sustaining and expanding the organization.
- VitaDAO:Raised over $5 million and partnered with Newcastle University for longevity research.
- HairDAO: Focuses on researching treatments for hair loss.
- CerebrumDAO: Raised over $1.5 million to study brain health and partnered with Fission Pharma to research mitochondrial disorders for neurodegenerative disease treatments.
- ValleyDAO: Raised over $2 million and collaborates with Imperial College London on synthetic biology applications.
- AthenaDAO: Specializes in women’s health research.
- CryoDAO: Focuses on cryotechnology, raising over $3 million.
- PsyDAO: Dedicated to pharmaceutical therapies for mental health, supporting trials and data collection for such medications.
Tokenomics
BIO is the main token of the project, with a total supply of 3,320,000,000 tokens. The project’s tokenomics is divided into two distinct parts: Community and Internal (Core Team, Advisors, Investors, etc.).
BIO Protocol allocates 56% of the tokens to the community, specifically as follows:
- Community Airdrop (6%): No specific unlocking timeline.
- Community Auction Rewards (20%): 50% of the tokens are unlocked immediately, with the remaining 50% vested linearly over one year.
- Incentives (25%): No predetermined allocation schedule; usage and distribution depend on governance votes.
- Ecosystem Fund for Molecule AG (5%): Distributed linearly over four years.
The remaining 44% is allocated to contributors to the network:
- Investors (13.6%): Locked during the first year and vested linearly over four years.
- Core Contributors (21.2%): Locked during the first year and vested linearly over six years.
- Advisors (4.2%): Locked during the first year and vested linearly over six years.
- Molecule AG (5%): Allocated to the biotechnology platform partner, Molecule AG, and distributed linearly over four years.
Core Contributors hold 21.2% of the total token supply, but the key question remains: who are they? Are they medical researchers or simply the project’s development team? This large token allocation requires close observation.
However, tokens for Core Contributors, Investors, Advisors, and 50% of the Community Auction Rewards are locked for the first year. This provides an ideal window for interested parties to engage with the project before these tokens are unlocked.
Token Use Case
BIO tokens are used for governance and making key decisions for BIO Protocol, such as:
– BioDAO Management: Token holders can vote on selecting, managing, and regulating BioDAO groups.
– Financial Management: Participate in decisions regarding fund allocation, adjusting token issuance, and implementing incentive programs for the community.
– Incentives: Receive discounts or benefits when purchasing health-related products and services from BioDAO groups within the network.
Potential and Challenges
Potential
– Revenue from Intellectual Property (IP): If research is successful, BioDAO and its members can secure steady income by selling or licensing IP to global companies and organizations in need.
– Community Tokens: With over half of the total BIO token supply allocated to the community, users can capitalize on this large allocation through programs like airdrops and incentives.
Challenges
– Regulatory Barriers: Legal regulations for IP on the blockchain and DAO structures remain unclear in many countries. This could hinder BIO Protocol’s growth, particularly in areas involving revenue sharing, where ambiguity could lead to lawsuits.
– Competition: BIO Protocol faces competition from traditional major organizations such as leading pharmaceutical companies (Pfizer, Johnson & Johnson, Merck, Roche) and public health institutions like the National Institutes of Health (NIH) in the U.S. or the National Health Service (NHS) in the U.K.
Scientific research takes years to develop and commercializing it is even more challenging. While BIO Protocol’s model and ideas are innovative, implementing them in practice is a significant hurdle.
The most crucial factor in this model is human resources. Can BIO Protocol attract qualified researchers to its cause? If it fails to secure the right talent, the vision of BIO Protocol may remain confined to paper.
Conclusion
BIO Protocol promises to be a leader in Web3 science and healthcare, offering opportunities for those who believe in the synergy between blockchain and scientific research. Hopefully, this article has provided clarity on the project’s potential and challenges, helping you make informed investment decisions!
