Binance is betting big on its smart contract solution – Binance Smart Chain. The new protocol’s release had minimal fanfare, but it is quickly gaining traction with DeFi farmers and Uniswap clones. While yield farms are exceedingly popular with “get rich quick” traders, companies like Prometeus are using the opportunity to create a decentralized social network, with support from some of the industry’s more massive names.
Binance Smart Chain Program
The Prometeus Protocol is part of the Binance Smart Chain (BSC) ecosystem. Initially designed for Ethereum, the team decided to port over to BSC due to ETH transactions’ slow and expensive nature. We previously explained how Ethereum transactions could cost an average of $5, leading to prohibitively high costs for multiple actions. As Prometeus executes functions across various blockchains, Arweave and Sia Skynet, these expenses would make the protocol unusable. BSC allows for these transactions to be paid with native tokens. When needed, PROM tokens are converted to AR and SIA tokens instantly to pay for these functions, considerably streamlining the system.
One of the most widely adopted tactics in the cryptocurrency space is the Token Burn. Companies issuing tokens will send a certain amount of them to a locked or unretrievable wallet, removing them from the circulating supply or “burning them.” The intended effect is to increase the tokens value by reducing the total supply.
Perhaps the most popular exchange on the market, Binance, has a history of token burns conducted each quarter. In a perfect world, reducing the supply would see prices continue to rise. But tokenomics is not an exact science, and prices constantly fluctuate, sometimes with no discernable reason. At the time of publication, the cost of BNB is hovering above $23, still lower from its all-time high of $39 in 2019. If burning tokens worked all the time, the price should be much higher.
Prometeus is following the token burn practice. It recently eliminated 750,000 tokens or approximately 12% of the total supply.
The Prometeus team is acutely aware of the growing DeFi space, especially on BSC. As one of the first projects on BSC, it has the opportunity to capitalize on its first-mover advantage. Two other services on the same blockchain, Burger Swap, and Spartan Protocol, have reached out to Prometeus, offering support and cooperation. The collaboration is already bearing fruit. Next week, Burger Swap liquidity providers will receive prizes in the form of BEP-721 non-fungible tokens (NFT’s). These NFT’s will come from Prometeus’s Memezator platform. Another addition to the NFT network will be Bounce.finance. They will work with Prometeus Prometeus on exclusive NFT sales.
The rapid development of the Prometeus Protocol is due in part to Binance’s continued support for BSC projects. It made an announcement recently that it was pledging $100 million to projects innovating on BSC. While this is quite a large sum, Prometeus has secured all the funding it needs currently. Furthermore, the team’s roadmap is ambitious enough to propel it well into 2021 and 2022.
Prometeus Network website is here.
Prometeus Medium is here.
Ignite website is here.
The Prometeus telegram group is here.
*Disclaimer – Prometeus Network is our Media Partner, and this content is provided with their support. The above article does not represent financial, investment or trading advice and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.