Project Frankenstein aims to create a multi-tenant, horizontally scalable Prometheus as a service, enabling easier management and enhanced durability for cloud-native applications. It addresses requirements such as Prometheus API compatibility, scalability to millions of samples per second, and cost-effectiveness, while incorporating improvements to query performance and operational management. The project has made significant progress, demonstrating scalability and query performance, though it faces challenges related to its hashing scheme and requires further development in features and code cleanup.