PoS Capital - Innovation Propulsion: Operation of Catalyst Fund + Nurturing Growth in the Cardano Ecosystem – A Two-Phased Approach

[GENERAL] Name and surname of main applicant

Joao Freitas

[GENERAL] Email address of main applicant

luminaryledger@gmail.com

Additional applicants

Florian Pittini, Guy De Nicolay, Masafumi Otaki,

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

12

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

As a fund operator we won´t generate any IP which can be used externally, we are a process focused business. Everything related to the voting and fund distribution will be on the blockchain and publicly visible. 

[METADATA] Category of proposal

Other

[IMPACT] Please describe your proposed solution.

Our proposed solution, "Innovation Propulsion," aims to establish an effective and transparent mechanism for nurturing growth within the Cardano community. This is structured as a two-phase approach:

Phase 1: Ensuring Catalyst Fund Operations: In this phase, we concentrate on the administrative and operational aspects of the Catalyst Fund. A dedicated team, composed of experienced professionals from diverse fields such as project management, blockchain technology, and fund management, will handle the day-to-day administration. Their tasks include managing project proposal submissions, overseeing community voting, ensuring transparency and accountability, and handling fund distribution.

Phase 2: Process Streamlining and Sustainability (Part of the Catalyst Improvement proposal): In the second phase, we refine and optimize the funding processes. This includes implementing a two-category funding model, Products/Startups and Open Source, ensuring a balance between commercial innovation and open-source community projects. For Products/Startups, an investment agreement requiring an equity stake or token allocation will create an evergreen funding cycle. For Open Source projects, funding will be granted without seeking returns, fostering an environment of collaboration and shared benefit.

The proposal submission process will be facilitated through an always-open, web-based form where community members can submit their proposals. A clear cut-off date will be announced for each funding round. The community voting process will be designed to minimize potential fraud and prevent self-dealing. This includes the use of blockchain technology to ensure secure, transparent, and immutable voting records.

Accountability and oversight are crucial. Regular audits and updates will be required from funded projects, ensuring the appropriate use of funds. This not only provides a checks-and-balances system but also keeps the community informed about project progress.

The program's outputs will be broadly communicated to the Cardano community through multiple channels, including community forums, newsletters, social media, and the official Cardano platform. This ensures that every community member is well-informed and can actively participate in the ecosystem's growth.

Let´s get into the details:

Team Composition and Day-to-Day Administration: The team comprises of five core team members:

1. The Managing Partner, with a distinguished track record in strategy, transformation, and venture building, will be responsible for overseeing fund allocation and ensuring that funds are used appropriately and effectively.
2. The Project Manager, experienced in managing complex projects within the blockchain space, will oversee project timelines, resource allocation, and team coordination.
3. The Blockchain Expert will handle all blockchain-related activities such as smart contract management, ensuring secure transactions, and validating community voting mechanisms.
4. The Community Engagement Specialist will focus on interaction with the community, addressing their queries, communicating updates, and promoting active participation.
5. The Operations Specialist will handle administrative tasks, troubleshooting, and process optimization.

The team will collaborate daily to ensure smooth operations, resolve any issues promptly, and maintain transparency in all activities.

Submission and Voting Process (Phase 2): Innovation funding requests will be submitted via a secure, encrypted web-based form designed with a user-friendly interface. The eligibility criteria for submission will be rigorous but inclusive, supporting all aspects of the Cardano ecosystem. Criteria will include, but not be limited to, the potential of the proposal to contribute to the Cardano ecosystem, the track record of the proposer(s), the feasibility of the project plan, and the need for funding.

Upon submission, each proposal will undergo a review phase before being published to the community. This ensures that only well-crafted and relevant proposals make it to the voting phase.

For community voting, we will use a bespoke blockchain-based platform, ensuring that the process is completely transparent and secure. Votes will be mapped against each member's ADA holdings to maintain a fair process.

Accountability and Oversight: To ensure funds are used appropriately, each funded project will be required to deliver periodic progress reports. These reports should detail the use of funds, any milestones reached, challenges encountered, and plans for the next phase. Our team will audit these reports, verifying the declared use of funds against the actual progress made.

Should discrepancies occur, our team will engage with the project leaders to address the issues. Severe or repetitive misuse of funds may lead to termination of funding (after a community vote), ensuring a responsible use of community resources.

Communication: Transparent and regular communication is crucial. We will disseminate information about funded projects, proposal status, and general updates through various channels. These include community forums, regular newsletters, and social media platforms (Twitter, Reddit, Facebook).

To foster engagement, we will host periodic webinars for deeper dives into select topics, and AMAs (Ask Me Anything) to address any questions or concerns from the community. Special attention will be given to major milestones achieved by funded projects, spreading the word about successful initiatives within the Cardano ecosystem.

Technical Requirements: On the technical front, we will use a blend of advanced web technologies to create a secure, responsive, and user-friendly portal for proposal submissions and community voting. The backend will be built to handle high traffic, mitigating any risks of downtime during peak submission or voting periods.

The distribution of funds will be facilitated through blockchain-based transactions, underpinned by smart contracts. These contracts will not only ensure an immutable record of transactions but also enforce certain conditions (like milestone completion) before funds are released. By utilizing the Cardano blockchain, we ensure that every transaction is secure, transparent, and cannot be tampered with.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

The Catalyst Fund is essential for the development of the Cardano Blockchain; this is why industry veterans should lead such an important cornerstone of the Cardano ecosystem.

[IMPACT] How do you intend to measure the success of your project?

Fund Utilization and Project Progress: Tracking the funds distributed to projects and their utilization gives us insight into how effectively funds are being used. Additionally, monitoring the progress and success of the funded projects will demonstrate the impact of the program.

Community Feedback and Engagement: Regular surveys and open forums will be conducted to gather community feedback on the process, the projects funded, and the overall operation of the Catalyst Fund. High engagement and positive feedback will be indicative of success.

Number of Successful Exits or Deliverables from Funded Projects: Over the long term, the success of the funded projects in terms of product launch, profitability, user base, or other relevant metrics for each specific project will be a strong indicator of the effectiveness of the funding program.

Transparency and Accountability: The degree of transparency in the fund allocation process, adherence to guidelines, and accountability of the teams will also be a significant measure of success.

In essence, the success of the project will be gauged not just by the operation of the fund itself, but also by its ripple effects on the Cardano community and the broader blockchain ecosystem.

[IMPACT] Please describe your plans to share the outputs and results of your project?

1. Regular Reporting: We will provide regular updates and progress reports to the community. This includes both updates on the overall functioning of the Catalyst Fund and specific updates from funded projects.
2. Online Presence: We will maintain an active online presence, sharing news and updates on our website, social media platforms, and relevant Cardano forums. This will ensure that both community members and the general public can easily access information about our activities and achievements.
3. Community Forums and Webinars: We plan to organize regular community forums and webinars where we can directly engage with the community. These events will provide a platform for us to present detailed updates, for the community to ask questions and provide feedback, and for the funded projects to showcase their progress.
4. Annual Report: We will publish an annual report detailing our activities, achievements, and learnings from the year. This report will provide a comprehensive view of the impact of the Catalyst Fund - we would like to present this always during the Cardano Summit.
5. Interactive Dashboard: We also plan to utilize the interactive online dashboard where real-time data about fund allocation, project progress, and other relevant metrics can be viewed right now from Catalyst Fund. This will provide a transparent view of our operations.

All these channels will ensure that the outputs and results of our project are widely disseminated, fostering a sense of collective ownership and active engagement within the community.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

Our team is composed of professionals with extensive experience in project management, blockchain technology, community engagement, and fund management. These are the qualities that lend credibility to our project and its administration.

Our key team members include:

• João Freitas: With a distinguished track record in strategy, transformation, and venture building, João demonstrates his exceptional ability through his work with Cofidis Group and Sensei. At Cofidis Group, he led multiple B2C businesses and transformation initiatives, providing strategic oversight for a 250+ team. These experiences render João well-suited to manage and oversee any project, ensuring high levels of trust and accountability.

• Guy de Nicolay: As a Venture Partner at Dealflow.eu, Guy has been instrumental in scaling up and raising funds for the most promising EU-funded startups. His experience in dealing with new materials, hardtech, and quantum verticals, and his role in connecting startups with investors and corporates, strengthens our team's capability to manage and oversee the proposed funding platform.

• Masafumi Otaki: A skilled professional in financial operations and venture capital, Masafumi hones his expertise from prominent firms like Nomura, Deloitte, and Sompo Holdings. He has a proven track record in managing cross-border transactions, conducting business strategy, and due diligence, along with startup investment. His acumen in these areas will play a pivotal role in delivering projects with high levels of trust and accountability.

• Florian Pittini: With a solid background in auditing, investment management, and strategic planning, Florian brings to the table his vast experience from Warth & Klein Grant Thornton AG and Occident Group AG. His leadership roles in NEWM and Optune showcase his ability in navigating innovative spaces such as DeFi and NFTs, ensuring operations are handled with high levels of accountability and trust.

The rigorous processes we will implement, such as a transparent milestone achievement overview, audits reports, and comprehensive progress reports, will further enhance trust and accountability. We are committed to upholding high standards of transparency and integrity, ensuring that each funded project is carefully vetted and held accountable for the appropriate use of funds.

Lastly, the use of blockchain technology and smart contracts for fund distribution and record-keeping will provide a transparent, immutable, and auditable trail, enhancing trust in the system.

With the combination of a highly capable team and robust processes, we are confident in our ability to deliver our project with high levels of trust and accountability.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

The main goals for the Innovation Propulsion project phase 1 are as follows:

1. Run the Open and Transparent Innovation Funding Platform: The primary goal is to take over the operation for the actual running Catalyst Fund.
2. Ensure a smooth process: Focus on the process and learn from all previous funds to achieve a high satisfaction from the participating projects.

Validation of our approach will be done through multiple ways:

• On-ramp phase: To achieve readiness until October we might have to adapt processes from the current system and only improve where it is possible.
• Community Engagement Metrics: The level of community engagement, such as the number of proposals submitted, votes cast, and feedback received, will serve as indicators of the effectiveness of our approach.
• Success of Funded Projects: The success of projects that receive funding, in terms of milestones achieved, deliverables produced, and value generated for the Cardano ecosystem, will be a crucial measure of the feasibility and effectiveness of our approach.

Through these measures, we can continually assess and validate our approach, ensuring that our project achieves its goals and delivers maximum value to the Cardano ecosystem.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Our project will be divided into two phases: "Operation Establishment" and "Process Streamlining." The anticipated timeline for the completion of both phases is approximately 12 months, with the goal of

being fully operational by October 2023.

Here are the detailed milestones and tasks:

Phase 1: Operation Establishment (0-3 months)

Milestone 1.1: Team Assembly and Setup (0-1 month) Tasks:

• Finalize team roles and responsibilities
• Finalize company setup, set up communication, project management tools
• Establish internal workflows

Milestone 1.2: Technical Infrastructure Development (1-2 months) Tasks:

• Define technical requirements and architecture
• Develop the web-based form for milestone submission
• Implement secure blockchain transactions for fund distribution

Milestone 1.3: Pilot Run and Initial Operation (2-3 months) Tasks:

• Conduct a pilot run of the milestone submission 
• Onboard the proposals and get familiar with everything
• Distribute initial funds to approved projects

Phase 2: Process Streamlining & Operation (3-12 months)

Milestone 2.1: Feedback Collection and Process Evaluation (6-12 months) Tasks:

• Run the operation of the Catalyst Fund and ensure the success of the startups
• Collect feedback from community members and funded projects
• Evaluate the effectiveness and efficiency of the current processes

Milestone 2.3: Establishment of Two-Category Funding Model (1-12 months - if funded in the improvement campaign also earlier) Tasks (Side-project - included in Fund improvement) :

• Develop the framework for the two-category (Products/Startups & Open Source) funding model
• Implement the new model and communicate changes to the community
• Begin accepting proposals under the new model

These timelines are estimates and may vary slightly based on practical project needs and unforeseen challenges. Our team will make every effort to adhere to this schedule and ensure timely delivery of all milestones.

Being ready in October is a huge ask and might be difficult if there are any delays of any sort.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1.1: Team Assembly and Setup (0-1 month)

Deliverable: A finalized team with clear roles and responsibilities, communication, and project management tools in place, and established workflows.

Outcome: A well-structured and efficient team ready to start the initiative and drive it forward.

Milestone 1.2: Technical Infrastructure Development (1-2 months)

Deliverable: A defined technical architecture, a web-based form for milestone submission, the concept of a blockchain-based transactions system for fund distribution.

Outcome: A technical infrastructure capable of handling milestone submission, community voting, and fund distribution securely and efficiently.

Milestone 1.3: Pilot Run and Initial Operation (2-3 months)

Deliverable: A successful pilot run of the milestone submission process, onboarding of proposals, and distribution of initial funds to approved projects.

Outcome: An operational system capable of handling milestone submissions and fund distribution. This phase ensures that all systems and processes are working as intended.

Process Streamlining & Operation (3-12 months) - run the operation

Milestone 2.1: Feedback Collection and Process Evaluation (6-12 months)

Deliverable: Collected feedback from community members and funded projects, and a comprehensive evaluation of the current processes.

Outcome: Insights Report on the effectiveness of the existing processes and areas of improvement. This phase will contribute to the overall improvement and optimization of the system.

Milestone 2.2: Establishment of Two-Category Funding Model (10-12 months - if funded in the improvement campaign also earlier)

Deliverable: A developed framework for the two-category (Products/Startups & Open Source) funding model, implementation of the new model, and communication of changes to the community.

Outcome: A more refined and comprehensive funding model that can cater to both products/startups and open source projects. This phase will contribute to the diversification and inclusiveness of the Catalyst Fund.

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

To ensure the success we calculated with an ADA price of 0.16 Cent because having an fund operator is critical for the success of Catalyst. 

We estimate 5%-6% of the fund amount per year should cover all the costs to successfully run the Catalyst Fund long term also during a bear market. We have to ensure that all the projects are closed after 12 months otherwise it will create additional workload which is not covered by charging a fee below 5.5%. This is why I would propose a cut off date after 12 months that ensures the focus on delivering the project as soon as possible and forces projects to think in milestones and not big visions. 

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

1. Infrastructure Building: The primary aim of this project is to enhance the infrastructure of the Cardano ecosystem by funding both open-source and commercial projects. The concept is to channel resources towards initiatives that will boost the functionality, resilience, and overall quality of the Cardano network. For example, if a proposal aimed at enhancing transaction speed or building an innovative dApp gets funded and achieves its goal, it significantly augments the ecosystem's capabilities. This development would, in turn, attract more users and developers to Cardano, thus driving the overall value of the ADA token upwards. Consequently, the entire community benefits from this enrichment, rendering the project as extremely good value for money.
2. Community Empowerment: The project adopts a decentralized decision-making model that gives the Cardano community - the ADA holders - a say in the development of the ecosystem. By offering a platform where the community members can propose, deliberate on, and vote for projects, we are placing the growth trajectory of Cardano directly into the hands of those who have the most stake in its success. This level of community engagement is vital in any decentralized system, and its value cannot be overstated. It increases community members' connection with the project, encourages participation, and utilizes the collective intelligence of a globally distributed community to make decisions that are best for the ecosystem.

Overall, these aspects collectively work to generate substantial value for the Cardano ecosystem. Each dollar spent on this critical infrastructure gives back the above mentioned benefits for the community.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept