Hey folks, if you’ve been in the crypto space long enough, you’ll remember the painful black-swan events of the Terra-Luna crash that occurred now nearly 2 years ago. What happened in just a few days arguably started the mega-downward spiral and contagion of that rocked not only $LUNA and $UST, but the entire crypto-market as a whole. The protocols that were understandably hit the hardest were the ones on the Terra-blockchain — many who suffered abysmal losses, simply because they were stuck on the wrong blockchain.
Out of Terra’s ashes
Despite suffering in some cases greater than 90% drops in TVL, many protocols made dramatic comebacks including Kuji and Astroport, who ended up launching their own Layer-1s via the Cosmos SDK and were able to re-achieve parabolic growth:
Although the landscape is incredibly different now, one of Terra’s previous hottest projects has been silently building in the backdrop, working similarly on their own blockchain — Pryzm.
What is Pryzm?
Pryzm was one of the highly innovative projects on Terra that pioneered experimentation between splitting $LUNA into 2 separate tokens — $pLUNA and $yLUNA — a yield token which captured the interest bearing yield of staked $LUNA, and a principal token which as the name suggests, captured the value of $LUNA’s principal value.
Sound familiar? Separating out the token’s principal from its innate yield is the premise of Pendle Finance’s model for yield-bearing tokens — a protocol that has also seen recent massive growth in TVL:
If you’ve taken a look at Pryzm’s current testnet, you’ll notice that the new Pryzm certainly isn’t the same as before, with newer features including Pulse and Flow Trading, and some of their previous mainstays including fixed principal (pAssests) and variable (yAssets) yield tokens that are “refractured” out of their original tokens. Yet apart from $LUNA, this time it appears that they’ll be introducing the ability to refracture many major Cosmos-SDK tokens, including $ATOM, $INJ, $OSMO, and $TIA:
This past week, apart from minting their first block on their blockchain, the Pryzm team has already alluded to the fact that they’re going to be shipping a lot of new features very soon:
Therefore, Pryzm is essentially going through a complete overhaul— new UI/UX, new Layer-1 blockchain, and new token. Speaking of new token…
$PRYZM Tokenomics
Once the $PRYZM TGE event occurs, the token will have a total supply of 1 billion, with reportedly 20% of tokens (200 million) allocated to go to the community through various seasons. Most project only allocate around 5–10% — a true testament to how much the Pryzm team is willing to give back to its community. There have been a few reported and confirmed ways to be eligible for part of the allocation including…
#Stakedrop: Although an exact timeframe has yet to be announced, the @Pryzm_Zone team has confirmed as early as March 2023 that there would up to 20% of supply tokens dropped for those who participate in delegated staking through any Pryzm’s #validator on a variety of networks including $ATOM, $OSMO, $LUNA, $TIA, $LUNA, $INJ, and most recently $DYM. (Official links to all of these validators can be directly on info.pryzm.zone).
Note: If you have any of these assets on one of Pryzm’s validators, it’s recommend that you register your address(es) as soon as possible, as they take weekly snapshots, factoring in how much commission your stake has accrued.
Zealy: Worried you don’t have much to stake? Pryzm has confirmed that users can gain eligibility by participating in their Zealy Questboard — tasks which include getting access to different roles on their discord.
Refractoors: Although exact eligibility not yet confirmed, the team has previously mentioned that once mainnet goes live, a “bonus alrdrop” may be available to stakers who “provide liquidity, or secure the chain.”
Wen token? According to their most recent announcement, the estimated TGE for $PRZYM is scheduled roughly for 6–8 weeks out from time of writing, or in other words roughly around the beginning of July 2024.
Refracted Beasts
Apart from the $PRYZM token TGE, one of the interesting “side projects” coming out of Pryzm is the impending launch of their first meme token, $AUUU:
Technically not a meme coin, the $AUUU token will have utility functions on Pryzm’s token, most notably for gas. If you’re interested in potentially getting some airdropped tokens, then I’d recommend replying with some “AUUUUUU”s on their really active twitter account:
Conclusion
Even with some of the significant downturns that have occurred with most Cosmos blockchains in the past month, ex-Terra projects like Kujira and Astroport have FDV’s of 100s of millions of dollars, and personally I see no reason that if it’s able to mirror its prior success, why Pryzm couldn’t reach the same heights. Additionally, if they’re able to mirror projects like Pendle, then I really don’t see much stopping them from getting in the same ballpark which would be in the billions.
As always, thanks for taking the time to read this and be sure to follow me on twitter (https://twitter.com/CryptosWith) to get all my latest updates. Also, looking for a gift for your Crypto-loving/hating friend? Give them a REKT journal to cheer them up!
Disclaimer: And as a final reminder, this is not financial advice and this is for educational and entertainment purposes only. Please as always, do your own research and find what investments are best for you. Cheers everyone! allocation, but I’m also earning some pretty significant yields on my assets at the same time.