*The original post by Maelstrom was published on January 3, 2025. This is an edited version with comments from Four Pillars' researcher Heechang and external contributor Moyed.
BIO token is launching on Binance, and inaugural BioDAOs (including VitaDAO, CryoDAO, and others) will receive substantial token rewards that in many cases exceed their entire market caps - for example, PsyDAO's allocation of 15.4mm BIO (worth ~$14.6mm) is more than double its $6.7mm market cap.
The DeSci sector is significantly undervalued compared to AI tokens ($1B vs $16B+ market cap), with major industry figures like Vitalik, CZ, and Brian Armstrong showing interest, suggesting potential for substantial growth in the sector.
Heechang’s Comment: DeSci is an unsustainable narrative without a proper IP infra, and BIO protocol is building this
Moyed’s Comment: Whether BioDAO tokens are undervalued hinges on the next wave of launches
*This Thesis Was Written by Lukas Ruppert a first year analyst at Maelstrom.
With BIO launching on Binance in ~1 hour, something seismic is about to happen in the DeSci ecosystem that the market has missed. Inaugural BioDAOs (e.g., Pfizer Ventures-backed VitaDAO for longevity, CryoDAO for cryopreservation, etc.) will be unlocking BIO token rewards for believing in the ecosystem from the very beginning. Nothing new there. But what’s remarkable—and the market seems to have missed—is that the quanta of these rewards to inaugural BioDAOs are staggering in size. For many, allocations exceed their entire market cap. E.g. PsyDAO’s 15.4mm $BIO early ecosystem allocation is valued at ~$14.6mm pre-launch (assuming that BIO’s $0.95 pre-market valuation holds) which is more than double its entire market cap of $6.7mm.
TLDR: BioDAOs about to make bank from the BIO rewards, and the market has missed it.
Big thanks to the Bio team for reviewing our research - special shoutout to @leonardboltz; @NateHindman and @paulkhls. This article is a @MaelstromFund production. Make sure to follow @akshat_hk ; @etherary; @PenguinRoi; @lukas_rppt.
Tickers: $VITA; $ATH; $GROW; $PSY; $CRYO; $NEURON; $HAIR
Prices as of 01/03/25 - 04:00UTC
Table above shows confirmed early ecosystem rewards that are already held in treasuries onchain (HairDAO is an exception and not included in the table as allocations are tbd). BIO tokens are liquid at launch; vBIO is vested 2-yr linear. Dollar values are based on the current pre-market price of $0.95. The ecosystem allocations for PsyDAO, ValleyDAO, CryoDAO, and AthenaDAO exceed their market caps.
And it gets even better: Once a BioDAO token hits $25mm daily volume the DAO is set to be eligible for an additional 13mm BIO tokens from bio/acc rewards. The $25mm mark has to be hit until January 17, 2025. $25mm daily volume means double the rewards - an upwards spiral:
Prices as of 01/03/25 - 04:00UTC
AI agents and DeSci are both trending this bull, and now it’s DeSci’s turn to shine. AI agent coins have a collective market cap of $16B+, while DeSci sits at $1B pre Bio-launch. Tiny in comparison. The inaugural BioDAOs have a combined market cap of sub $150mm. In addition there are only 6.5 inaugural BioDAOs as opposed to thousands of AI agent coins. [6.5, since Cerebrum technically was not part of the initial BioDAOs cohort, but was later added due to outstanding performance.] Why this matters: There will only ever be so many OG DeSci bluechips. Based on this unique dynamic, small cap inaugural BioDAOs offer the greatest upside potential.
DeSci is one of the few truly new narratives in the space that many market participants have yet to hear of. According to Kaito’s highly scientific, fool-proof precise calculations, DeSci’s mindshare increased 2640% (lol, I know) in 2024 yet remains tiny compared to other themes tracked by Kaito. This is about to change… we are ready for a sector rotation. Look at the names excited about DeSci’s potential. Vitalik, CZ, Brian Armstrong, Fred Ehrsam, Balaji, the list goes on. Haseeb made the new year prediction that “DeSci tokens will turbo pump.” The Vitalik + CZ DeSci meetup in Bangkok merely was the initial smoke signal that something was cooking. Learning about and understanding a truly new development takes time.
Source: DeSci meetup BKK with @cz_binance and @VitalikButerin (edited)
Binance, an early investor in BIO, is likely to lead the DeSci charge. One of (soon-to-be-rebranded) Binance Labs’ investors Andy is a true DeSci evangelist. Among other things, he organized the BKK meetup. He’s been instrumental in priming Binance to win by betting on DeSci. Base is a huge success heavily because Coinbase backed Virtuals and key ecosystem players like Aerodome so aggressively. Binance has sour grapes, and a DeSci-bull could help them push BNB at a time when AI agent coins are stealing the limelight.
Of course punting on the frontier is risky. As always, this is not financial advice and DYOR. Here’s the Dexscreener watchlist for the inaugural BioDAOs:
Source: DEX Screener - Watchlist
Follow to be the first one to see stuff like this in the future! Happy New Year!
Source: BIO Protocol | BIO
Like Virtuals Protocol has built a framework for AI Agent, Bio Protocol provides a framework for DeSci projects. Bio Protocol offers services to launch BioDAOs, providing funding launchpads and incubator programs—all powered by the BIO token, which functions as both a governance and utility token. Similar to how Virtuals Protocol enables the creation and co-ownership of AI agents, Bio Protocol enables the establishment and operation of research-focused DAOs.
VitaDAO is one of the well-known BioDAOs, concentrating on funding and accelerating longevity research and drug development. Through VITA tokens, community members can vote on funding proposals and research projects. The DAO has attracted attention, securing investment from Pfizer Ventures and launching its first biotech company, Matrix Biosciences, which studies anti-aging compounds in naked mole rats.
For BIO Protocol to grow, it utilizes its treasury. Its treasury expands by providing incubated BioDAOs with $100,000 grants in exchange for 6.9% of their token supply. These token allocations accumulate in the BIO Treasury, increasing the protocol's AUM as the network's BioDAOs gain value. The treasury can freely leverage the assets and generate yields or acquire shares of scientific IP assets.
What I consider a crucial factor for this protocol's sustainability is its "Tradable IP-NFTs."
BIO Protocol's IP-NFTs provide an on-chain representation of a legal framework, enabling intellectual property to move onto the blockchain. These NFTs represent research papers, datasets, code, and patents while establishing verifiable blockchain ownership. Through IP tokenization, control and monetization rights shift from traditional institutions and publishers directly to creators and researchers.
However, the concept of IP tokenization remains unproven, particularly regarding research papers and patents moving securely on-chain. Several questions arise: What are the associated risks? Can patents truly become liquid assets? How will BIO Protocol and BioDAOs navigate legal issues across different countries? These challenges must be addressed, or DeSci projects will be short-cycled. This is why BIO Protocol deserves attention—its infrastructure aims to solve these fundamental issues.
Maelstrom's hypothesis about BioDAO tokens is based on the fact that a significant portion of $BIO has been allocated to BioDAOs relative to their market capitalization.
There are several points to consider regarding this substantial allocation of $BIO to BioDAOs. First, one might argue that BioDAO tokens are undervalued. Conversely, it could also be claimed that $BIO is overvalued. This argument stems from $BIO fundamentally serving as an ETF-like asset for BioDAOs incubated by the BIO Protocol. If we assume the value of $BIO as stable, BioDAO tokens may appear undervalued. However, the opposite perspective suggests that $BIO itself might be overvalued. Additionally, BioDAOs are hybrid of profit and non-profit in nature, with their treasury building is strictly dedicated to the research agendas they aim to address. This raises questions about how treasury funds should be reflected in the token's valuation, leaving room for differing opinions. Lastly, as noted, BioDAOs received half of their allocated $BIO in the form of $vBIO, which is subject to a two-year vesting period.
From my perspective, a stronger argument could be made for the cascading benefits existing BioDAOs might gain from the success of newly launched BioDAOs. Since $BIO functions as an ETF for BioDAOs launched through the Bio Protocol, if the upcoming second cohort of BioDAOs performs exceptionally well, it could enhance the value of $BIO. This, in turn, could have a positive impact on the BioDAOs that have been allocated $BIO.
For example, Long COVID Labs is a BioDAO established to accelerate treatments for over 100 million Long COVID patients. This project is led by Rohan Dixit, a neuroscientist affiliated with Stanford and Harvard-MIT-MGH. Another example, Curetopia, aims to develop treatments for over 10,000 rare diseases by enabling patient groups and families to share data and collaborate, accelerating drug development. The initiative is spearheaded by Ethan Perlstein, a rare disease expert, leveraging a fast and cost-efficient drug discovery model.
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Maelstrom is an investment fund focused on digital assets. It is managed by the family office of Arthur Hayes (co-founder, BitMEX). The fund’s mandate is to build a portfolio of infrastructure companies that will serve as the foundation of the next wave of trustless decentralization. Website: Maelstrom.Fund
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