As blockchain technology continues to be widely applied in various fields, Decentralized Science (DeSci), as an emerging field, is attracting more and more attention, especially after Binance Labs announced its investment in the DeSci project - BIO Protocol. So, what exactly is BIO Protocol? How does it promote the progress of scientific research through innovative mechanisms?

What is BIO Protocol?

Source:https://docs.bio.xyz/bio/the-bioconomy/bio-protocol

BIO Protocol is a decentralized science (DeSci) protocol designed to provide a decentralized support platform for global scientific research. Its core goal is to break down barriers in traditional research funding models by using blockchain technology to facilitate the flow of funds, resource sharing, and innovative incentive mechanisms in scientific research, thereby promoting faster, more transparent, and efficient research progress. BIO Protocol combines the decentralized nature of blockchain with funding and governance in biomedicine and scientific research, creating a new ecosystem for research.

Four core components of BIO Protocol

1. BioDAO: Decentralized Scientific Research Organization

Each BioDAO focuses on a specific research field or project, such as cancer research, longevity science, etc. BioDAO harnesses the collective power of globally distributed stakeholders (such as patients, scientists, and biotech builders) to pool resources (such as funds, data, technology, etc.) to collectively drive the development of research projects.

BioDAO raises funds through token sales to support and develop biotechnology projects in related fields, thereby establishing shared ownership of intellectual property rights among its members. The revenue generated from intellectual property and product sales can be reinvested in BioDAO's funding to support and advance the next generation of research and development.

Source:https://docs.bio.xyz/bio/the-bioconomy/bio-protocol/biodaos

2. Curation: Decentralized curation mechanism

Curation is the second key component in BIO Protocol, selecting and supporting high-quality biotechnology projects through token staking and community voting mechanisms. Specifically, BIO token holders can stake their tokens in their supported BioDAO to determine which BioDAOs can join the BIO network, receive funding support, and obtain token liquidity support, incentives, and other acceleration services from the community.

The advantage of this mechanism is that it can gather professional knowledge and experience from the global scientific research field, while ensuring high community participation when choosing projects.

Source:https://docs.bio.xyz/bio/the-bioconomy/bio-protocol/curation

3. Bio/Acc Rewards: Research Incentive Mechanism

In order to incentivize early participants and contributors, BIO Protocol has designed the Bio/Acc Rewards incentive mechanism. Bio/Acc Rewards provides rewards to BioDAO and its members in the form of BIO tokens, motivating them to complete key milestones in research projects. These rewards will be allocated to two types of participants:

• Research institutions and research organizations: for example, conducting initial token auctions through BIO Launchpad, funding biotech projects, and conducting decentralized clinical trials.
• Ordinary users: for example, contributing data to clinical trials, participating in research project testing, purchasing BioDAO products, etc.

4. IP Tokens: Tokenization of Intellectual Property

One of the innovations of BIO Protocol is the tokenization of intellectual property rights of research results through IP Tokens. IP Tokens represent partial governance rights over the intellectual property of research projects, including patents for new compounds, screening systems, treatment methods, etc.

These tokens not only allow holders to participate in decision-making, but also enable them to enjoy the potential benefits of scientific research results. Unlike the traditional NFT profit-sharing model, the IP Tokens of BIO Protocol do not directly provide financial returns to holders, but instead provide them with exclusive information on scientific research data and progress, as well as potential innovative opportunities in the future. This tokenization mechanism enables scientific research results to achieve better liquidity and allows more people to participate in the sharing and application of scientific research results.

BIO Token Economics and Dual-Round Genesis Auction Mechanism

The native token of the BIO protocol is BIO, which serves as a governance and incentive tool for the platform, and has a wide range of use cases. Users holding BIO tokens can participate in protocol governance, including:

• Choose and support the BioDAO joining the BIO network
• Terms of participation in BioDAO and its IP token sale
• Support and discounts for BioDAO's health products/services
• Governance in member BioDAO
• Deciding the issuance of BIO tokens, treasury allocation, and protocol upgrades

Token Supply and Distribution

Source:https://docs.bio.xyz/bio/the-bioconomy/bio-token/bionomics

The total supply of BIO tokens is 3.32 billion, mainly distributed to the following groups:

• Community (56%): including airdrops, community auctions, ecosystem incentives, Molecule Foundation, etc.
• Core Contributors (21.2%)
• Investors (13.6%)
• Molecule (5%)
• Advisor (4.2%)

After token distribution, different unlocking schedules will be set according to the needs of different groups. For example, the community airdrop has no lock-up period and can be used immediately, while tokens held by core contributors and investors will have a one-year lock-up period, followed by linear unlocking.

Dual Wheel Genesis Auction Mechanism

To ensure the fair distribution of BIO tokens and raise funds for the protocol, the BIO protocol has adopted an innovative dual-round Genesis auction mechanism. This mechanism consists of two auction rounds, each aimed at providing funding for protocol launch and building community foundation.

In the first round of English-style auction, participants use ETH to bid. The purpose of the auction is to discover the market price of BIO tokens, raise funds for the protocol, and establish a community foundation.

In the second Dutch auction, the price of BIO tokens will start from a higher initial price and gradually decrease until a market-accepted price is found. In this auction, participants can choose whether to purchase based on the pace of price reduction. The aim of the auction is to further distribute BIO tokens, ensuring diversified funding and broad community participation.

The dual-auction mechanism not only ensures the fair distribution of initial tokens, but also enables the market demand for BIO tokens to be effectively assessed. In this way, BIO Protocol can raise funds in a decentralized environment and ensure that early supporters and investors receive corresponding returns.

BIO Launchpad: Decentralized Research Startup Platform

BIO Launchpad aims to empower the BIO community to decide which DAOs should be launched through BIO Launchpad and gain support from the BIO community. Additionally, it aims to provide initial funding for DAOs and ensure deep liquidity for the market after the project is launched, ensuring efficient market operation. According to the official website, BIO Launchpad V1 is still under development.

Source:https://docs.bio.xyz/bio/launchpad/launchpad-v1-wip

BIO Launchpad is divided into three stages:

In the first stage (screening stage), BIO holders can stake their BIO tokens to support BioDAO projects they are interested in and gain the unlocking rights of the DAO's future tokens. In this stage, potential projects will be selected through collective decision-making by the community to enter the next round of financing.

The second stage (acceleration stage) is the moment when the project starts financing. Through the 'bonding curve' or 'auction' mechanism, BioDAO will open its token purchase to the public, and users can purchase these tokens to support the project's launch. The acceleration stage not only provides initial funding for the project but also verifies its demand and value through the mechanism of free market trading. If the market does not sufficiently recognize the DAO project, it will stay in the bonding curve stage until the exit conditions are met.

Finally, in the third stage (separation stage), the project circulates tokens through an automated market maker (AMM) to become a freely tradable asset. The DAO obtains the funds raised and provides liquidity. At this point, the BIO token and DAO token will be locked in the liquidity pool, supporting market trading and generating fee income for the DAO.

BIO Launchpad not only provides a stable financing mechanism for DAO projects, but also encourages community members to participate in decision-making, ensuring that every project on the platform can receive broad support and market validation.

Conclusion

BIO Protocol, as an innovative project in the field of decentralized science (DeSci), not only provides a new funding and incentive mechanism for global scientific research, but also realizes the transparent flow of research funds and decentralized sharing of resources through blockchain technology. The four core components of BIO Protocol—BioDAO, Curation, Bio/Acc Rewards, and IP Tokens, have constructed an innovative and efficient scientific research ecosystem, providing global researchers with new opportunities for cooperation and development.

Meanwhile, the dual-wheel Genesis auction mechanism adopted by the BIO Protocol not only ensures the fairness of token distribution, but also raises startup funds for the project and incentivizes more market participants to join this decentralized scientific research platform. With the participation of investment institutions such as Binance Labs, BIO Protocol is expected to further promote the popularization of decentralized scientific research and provide important support for solving global scientific research problems. In the future, the success of BIO Protocol will set a new benchmark for the DeSci field and may also become an important milestone in the application of blockchain technology in the biomedical and scientific research fields.