DeSci: How to Use On-Chain Memes to Challenge the Existing Scientific Research System?
DeSci, as an innovative research funding model, combines blockchain technology with meme culture and is attempting to disrupt traditional research funding models. Through a decentralized approach, DeSci aims to address issues in research funding, intellectual property management, and transparency. However, DeSci is still in its early stages; although market enthusiasm is rising, its economic scale is not yet sufficient to support large-scale research expenditures.
Author: YBB Capital Researcher Ac-Core
TL;DR
The emergence of DeSci hotspots is mainly due to Binance Labs' investment in BIO Protocol, CZ's new direction speech involving biotechnology adoption, CZ's discussion with Vitalik on DeSci, and a16z leading the DeSci project AmionChain;
If we consider DeSci as a Meme, its fundamentals require stronger narratives and influential figures compared to other Memes in areas like zoos, AI, and art, while also having greater potential to break boundaries;
In practical terms, the current economic scale of the DeSci market is insufficient to support research funding expenditures. DeSci is still in the early stages of the "market cap dream," and hype is a necessity.
I. Background
1.1 What is DeSci
The more official explanation is that DeSci (Decentralized Science) aims to build public infrastructure for scientific research through the fair and equal use of Web3 technology, focusing on issues such as peer review, research funding, intellectual property management, and data transparency and auditing mechanisms.
In simpler terms, DeSci is about applying the pure speculation of the crypto world to the zero speculation of scientific research. However, DeSci is not a new concept that emerged this year; VitaDAO, which focuses on funding and promoting early longevity science research, was established back in 2021 and even received investment from the world-renowned pharmaceutical company Pfizer. Yet, DeSci has historically developed slowly and has not attracted market attention until recently when Binance Labs announced its investment in BIO Protocol and CZ participated in a DeSci conference with Vitalik, bringing this track back into the public eye.
1.2 The Birth of Hotspots
- Binance Labs exclusively invests in BIO Protocol:
BIO Protocol can be seen as a crowdfunding platform for scientific projects, raising funds through token sales to support and advance biotechnology projects. Intellectual property exists in the form of IPT (Intellectual Property Token) under the Molecule protocol and is shared among participants.
BioDAO will reinvest the profits from intellectual property and product sales back into BioDAO's treasury to fund the next generation of research projects. Binance Labs stated, "BIO can be seen as the Y Combinator of on-chain science." Currently, the total value of the top 100 startups under Y Combinator has exceeded $100 billion, including well-known companies like Airbnb, Coinbase, Stripe, and Reddit.
- CZ's new direction speech includes biotechnology and discussions on DeSci with Vitalik:
In his first speech after being released during the 2024 Dubai Binance Blockchain Week, CZ articulated his relationship with artificial intelligence and biotechnology, stating, "Now I mainly do two things: one is Google Academy, and the other is investment. The investment mainly focuses on three areas: blockchain, artificial intelligence, and biotechnology." Subsequently, CZ attended Binance's DeSci Day event in Bangkok and discussed DeSci with Vitalik. This sparked market discussions, leading to significant price increases for various DeSci project tokens.
- a16z leads the DeSci project AmionChain:
Recently, AminoChain announced that it has secured $5 million in seed funding led by a16z, along with previous investments from private funds like Cercano, bringing the total funding amount to $7.8 million. Its vision is to build a decentralized "biobank" on L2, allowing researchers to easily find and access samples while patients retain control and receive compensation for the use of their data.
Image source: X(@BinanceLabs)
II. The Real Demand and True Use Cases of DeSci
2.1 Genuine DeSci: Funding Needs for Research
According to the 2024 report from the National Science Foundation (NSF) and the National Center for Science and Engineering Statistics (NCSES), the estimated research expenditure in the U.S. for 2023 is $710 billion, with R&D spending in 2022 nearing $700 billion, predominantly driven by corporate R&D, with about 78% of R&D investment coming from the private sector, especially in fields like information technology and pharmaceuticals.
In 2021, apart from China and the U.S., the countries with the highest research expenditures were Japan ($177 billion), Germany ($154 billion), and South Korea ($120 billion). In 2021, U.S. R&D spending was equivalent to 3.5% of GDP, while Israel and South Korea exceeded 4%, and Taiwan, Japan, and Germany were between 3% and 4%, with the UK and China above 2%. In 2022, U.S. higher education R&D investment ranked second, only behind commercial funding. Funding for life sciences research is the highest in the science and engineering fields, reaching $42 billion (44% of the total), primarily from the Department of Health and Human Services (data can be found in extended link 1).
Image source: See extended link 1
In 2023, China's R&D expenditure exceeded 3.3 trillion yuan (approximately $458.5 billion), an increase of 8.1% year-on-year. Among this, the investment in basic research was 221.2 billion yuan, growing by 9.3%. Compared to previous years, China has maintained a high growth rate in recent years, especially in high-tech and basic research, demonstrating the driving force of the strategy for becoming a technological powerhouse (data can be found in extended link 2).
The growth in research expenditure comparison: China's research funding growth rate is rapid, particularly in basic research, reflecting the country's determination for technological innovation and emphasis on high-end technology fields. Although the absolute amount in the U.S. is higher, its growth rate is relatively stable, focusing on long-term technologically advanced fields.
From the perspective of DeSci's practical application, it currently remains more in the narrative stage of Memes, making it difficult to directly drive technological development. Whether through narrative-driven donations or market liquidity from speculative trading, the existing economic scale is still far from sufficient to support the massive funding required for research. Therefore, DeSci is still in the early stages of the "market cap dream." For DeSci to truly take off in the future, it not only needs to meet regulatory demands but also requires sustained support from influential figures.
2.2 Real-World Academic Finance Case of DeSci: The South Korean LK-99 Room Temperature Superconductor Incident
Image source: Taj Quantum - Official website of Taj Quantum, USA
2023 has been dubbed the "Year of Room Temperature Superconductors," primarily due to several studies claiming to have discovered room temperature superconductors, which sparked widespread attention in the global scientific community. However, as subsequent investigations deepened, these findings were proven to have serious issues, even leading to an academic scandal.
The incident began when physicist Ranga Dias from the University of Rochester in New York published a paper in Nature, claiming to have discovered a material capable of achieving superconductivity at room temperature. This discovery was initially seen as a major breakthrough, as the emergence of room temperature superconductors could revolutionize technology in energy transmission, medical devices, and electronic components. Typically, superconductors need to operate at extremely low temperatures (below -196 degrees Celsius), and achieving superconductivity at room temperature has been a long-sought goal in the scientific community. However, Dias's research faced significant skepticism from the outset, especially since his academic reputation had already been controversial due to similar research in 2020.
In 2020, Dias quickly rose to fame due to a paper on room temperature superconductors, but that paper was retracted by Nature two years later. Nevertheless, Dias published similar research again in 2023, reigniting attention. However, many peers accused him of data manipulation and even plagiarism of doctoral thesis content. Several well-known media outlets, including The Wall Street Journal and Science, launched investigations into him, revealing issues in his research. The University of Rochester also initiated multiple internal investigations against Dias, ultimately confirming that his paper had "data reliability issues," leading to the revocation of his authority to manage his laboratory and students. In November 2023, Nature officially retracted his latest paper on room temperature superconductors.
The scandal's underlying details gradually came to light. According to an investigation by Nature's news team, members of Dias's research team did not observe the key superconducting phenomenon known as the "Meissner effect" during experiments but received a manuscript from Dias within a short time and were asked to cooperate in its submission. These graduate students felt puzzled about certain experimental data in the paper, but under the authority and pressure from their advisor, they ultimately did not publicly question these issues. Subsequently, more reviewers and experts expressed skepticism about Dias's experimental data, discovering that it might have been tampered with.
While Dias's first paper faced scrutiny, he claimed to have discovered superconductivity in another material (a compound of lutetium and hydrogen, LuH). However, the measurement data from this research was also fraught with issues, with many students pointing out systematic errors in the experimental results, even feeling that they were "deceiving themselves." Despite the growing skepticism, Dias chose to push for the paper's publication, but 8 out of the 11 co-authors ultimately decided to request retraction.
This series of academic scandals not only severely damaged Dias's reputation but also impacted the entire research field. The career prospects of many young scientists became uncertain due to their involvement in these studies, and trust in academia was undermined. Paul Canfield, a physicist at Iowa State University, remarked, "This scandal has harmed the careers of young scientists, especially those in the field of superconductivity."
Meanwhile, another key player in the room temperature superconductor field, the South Korean LK-99 team, also became embroiled in similar controversies. Although they claimed to have discovered a new "room temperature superconductor"—PCPOSOS—in 2024, many in the scientific community expressed doubts about the authenticity of their research. The data presented by the team at academic conferences was similar to previous LK-99 research, lacking sufficient verification support.
Image source: Bloomberg
Following the announcement of breakthroughs in superconductor technology, some South Korean stocks related to superconductors attracted a large number of investors. Stocks of small-cap companies like Duksung Co. and Sunam Co. hit the daily limit of a 30% increase for three consecutive trading days. Sunam Co. surged approximately 260% over the past six trading days, while Duksung rose by 170%. Mobiis Co. increased by 30% on Thursday, and Shinsung Delta Tech Co. briefly rose by 21%, setting a historical high.
In the later stages of the incident, the Korean Superconductivity Society's verification committee stated that LK-99 did not exhibit the Meissner effect and could not be proven to be a superconductor. This news caused fluctuations in Chinese superconducting concept stocks, with Falcom and Zhongfu Industrial experiencing significant declines, the former not being involved in superconducting technology and the latter only providing venue and equipment support, while the stock price of American Superconductor fell by 29%, and Sumitomo Electric Industries also saw a decline due to poor performance.
III. Overview of the DeSci Ecosystem
3.1 BIO Protocol
The BIO Protocol, which received investment from Binance Labs, has been dubbed the "Y Combinator of on-chain science," aimed at incubating early-stage companies by providing funding and resources to accelerate project development. According to Deep Tide TechFlow, the main components include BioDAO, curation systems, liquidity and IP transformation, and incentive mechanisms.
Image source: Deep Tide TechFlow - Interpretation of BIO Protocol - BioDAO
$VITA (VitaDAO): Established in 2021, VitaDAO focuses on funding and promoting early longevity science research, aiming to extend human healthspan, managed by $VITA holders;
$RSC (ResearchCoin): Used to reward users' contributions on the ResearchHub platform, aiming to accelerate scientific research by incentivizing contributions within the community. Anyone can earn $RSC by sharing, curating, and discussing academic science within ResearchHub;
$ATH (AthenaDAO): AthenaDAO is a decentralized community composed of researchers, funders, and advocates dedicated to advancing women's health research, education, and funding;
$GROW (ValleyDAO): A decentralized organization focused on anti-aging drugs and longevity projects.
3.2 Pump.Science
The Solana ecosystem's DeSci platform Molecule DAO launched a Meme launch platform at the Solana Breakpoint 2024 conference. Pump.science will issue Meme tokens representing drugs on Pump.fun, with related concept tokens including:
$RIF: Rifampicin, which, according to the official website, "is an antibiotic that has gained attention for its remarkable effects on aging. In microorganisms like Caenorhabditis elegans (a model organism often used in aging research), rifampicin has been shown to activate the cell's natural defense mechanisms to resist stress and damage. Imagine it as a 'cell coach' that encourages cells to stay healthy and resilient by protecting them from harmful oxidative stress and maintaining the quality of intracellular proteins. These protective effects help worms live longer and healthier."
$URO: Urolithin A, which, according to the official website, "is a compound produced by your body when you consume foods rich in ellagitannins (like pomegranates). What makes urolithin A special is its ability to perform a 'spring cleaning' for your cells. It helps clear out old, dysfunctional mitochondria (the cell's energy factories), allowing fresh, healthy mitochondria to thrive. This process, known as mitophagy, has been shown to extend the lifespan of Caenorhabditis elegans by making cells more efficient and vigorous."
3.3 Donation Concept
$Scihub: An unofficial token donated by @0xAA_Science, aimed at supporting open-source research paper websites. The token direction is inspired by the Sci-Hub shadow library and is merely a community Meme token. Sci-Hub is a non-profit, non-governmental website providing free access to academic paper downloads. In addition to resources like Google Scholar, Sci-Hub, LibGen, and PubMed, it integrates a series of other academic resources available online in both Chinese and English, allowing for one-stop searching and free downloading of domestic and international literature, patents, books, and other academic materials.
3.4 DeSci Quantum Meme
$ANTI - Antitoken and $PRO - Protoken: These are a pair of token combinations expressing support and opposition to Meme Tokens, founded by algorithm engineer and mathematical physics expert @sshmatrix_, with 1 $ANTI = 1 $PRO rising and falling together.
IV. How Long Can the Elixir of Life on the Chain Last?
DeSci is not a concept that emerged this year; its sudden popularity is mainly influenced by Binance Labs' investment in BIO Protocol, CZ's discussion on DeSci with Vitalik, and a16z leading the DeSci project AmionChain, while the market also requires the push of "pump is justice." Looking at the current market, DeSci still primarily relies on Memes as the main driver, but its fundamental attributes differ from other Meme logic.
Unlike other Memes: Compared to Memes in areas like AI, zoos, and art, DeSci fundamentally requires a strong and influential figure to "promote" it; relying solely on internal traffic may not be sufficient, and it needs real-world figures with "scientific research" attributes from outside the circle;
Leading projects' valuations need to be continuously elevated: Currently, the DeSci track has not produced a leading project with a market cap of $1 billion, compared to other tracks' Memes, it still has significant market potential, and mainstream centralized exchanges have not yet listed related tokens, with no large-scale financing appearing at the primary level;
DeSci may have greater potential to break boundaries: The current PVP market is highly competitive, but if an outsider with a "scientist" background uses the DeSci narrative for donations or financing, it will have more development space. Similar to crowdfunding to purchase rare original copies of the U.S. Constitution with $PEOPLE, and the NFT "Everydays: The First 5000 Days" auctioned at Christie's for $69.3 million, Elon Musk took $DOGE to the moon. DeSci and these cases exhibit similar core logic, with marketing effects comparable to Jia Yueting presenting a PPT plan to build cars in the crypto space.
Extended Links:
(1) https://www.nsf.gov/nsb/news/newssumm.jsp?cntnid=309719\&org=NSB
(2) https://english.www.gov.cn/news/202403/05/content_WS65e6ff4dc6d0868f4e8e4b66.html
