Academic Research on Catalyst economy - GDP estimation

[GENERAL] Name and surname of main applicant

Gonzalo Rios

[GENERAL] Email address of main applicant

gonzalo@aerosnetwork.com

Additional applicants

Javier Santiago Ortiz

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

4

[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?

Yes

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

Formulas

[METADATA] Category of proposal

Other

[IMPACT] Please describe your proposed solution.

Measuring Gross Domestic Product (GDP) in a tokenized economy presents unique challenges due to the decentralized and distributed nature of blockchain-based transactions. Our approaches to consider for measuring GDP in a tokenized economy like Catalyst:

1. ADA Token Transaction Volume: Monitor the volume and frequency of token transactions occurring within the economy. This can be measured by analyzing blockchain data to track the number of transactions, token transfers, and smart contract interactions. A higher transaction volume generally indicates increased economic activity.
2. Value of Tokenized Assets: Assess the total value of tokenized assets within the economy. This includes tokens representing real-world assets such as real estate, intellectual property, or commodities. By determining the value of these tokenized assets, we can estimate their contribution to the overall GDP.
3. Token Trading Volume and Market Capitalization: Analyze the trading volume and market capitalization of tokens traded on exchanges within the tokenized economy. This information provides insights into the liquidity and market activity of tokens, which can be used as a proxy for economic activity.
4. Economic Activities Data: Collect data on economic activities that occur within the tokenized Catalyst economy. Such data can provide insights into the economic value generated by these activities.
5. Price Indexes and Inflation Rates: Monitor price indexes specifically tailored to tokenized assets or goods and services available within the tokenized economy. By tracking changes in token prices and analyzing inflation rates, you can estimate the impact of price fluctuations on GDP.

It's important to note that measuring GDP in a tokenized economy is still an emerging field, and standardized methodologies do not yet exist but we have been working on other projects measuring GDP in a tokenized economy.

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

Our Academic research will generate value in several ways: contributing to various aspects of Cardano society and practical applications. Some key ways in which our research will bring value.

By conducting this rigorous study, we will uncover new insights, theories, and empirical evidence of how the agents interact in Catalyst. This will contribute to the existing body of literature in the blockchain field, enabling a deeper understanding of the Cardano ecosystem and providing a foundation for future research

Also, this can help Policy and Decision-Making. Our research findings will provide evidence-based insights that can guide policy formulation, program design, and strategic decision-making processes. Catalyst policymakers can rely on our academic research to address funding challenges and improve Catalyst fund distribution.

Our findings can lead to the development of new products, services, processes, or technologies when understanding better the Catalyst economy.

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

We can assess the practical applications and real-world impact of the research. This will include examining how the research has influenced Catalyst policy decisions or contributed to fund optimization.

Also expert recognition like presenting the research findings at conferences, seminars, or prestigious academic events.

Publishing a paper related to our findings.

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

We will write an academic economic paper based on our findings.

We will try to publish our research in reputable peer-reviewed journals as well as make it public to the whole community in Cardano.

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

Our team is composed of a Master in Economics and a Ph.D. in Economics from the University of California.

We also have been working on a project to measure GDP in a tokenized economy for a year and our paper will be available in a couple of months.

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

The main goal is to create an Academic economic paper Measuring Gross Domestic Product (GDP) in Catalyst tokenized economy.

[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 plan to execute this project is the following:

a) Perform a Literature Review: Conduct an extensive review of academic literature, research papers, and policy documents related to digital currencies, monetary systems, and central banking. This will provide a theoretical foundation and identify existing research gaps.

b) Data Collection: we will focus on secondary data that will be gathered from Catalyst funds.

c) Quantitative Analysis: Utilize econometric techniques, such as regression analysis or time-series modeling, to assess the potential impact of a digital currency on monetary variables, financial intermediation, and economic indicators.

d)Conclusion: Summarize the proposed research, emphasizing its objectives, methodology, and conclusions. Emphasize the potential contributions of the study to both academic knowledge and policy discussions.

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

The main deliverable is a research paper with the following parts:

• Abstract: With a brief summary of the research paper, highlighting the objectives, methodology, key findings, and implications.
• Introduction: Providing background information on Cardano and Catalyst, context, and rationale for the study. Stating the research problem, objectives, and research questions or hypotheses.
• Literature Review: A comprehensive review and analysis of existing literature and relevant studies related to this research topic.
• Methodology: Describing the research design, data collection methods, and data analysis techniques employed in the study.
• Results: Present the findings of the study in a logical and organized manner. It may include textual descriptions, tables, figures, or other visual representations to present the data.
• Conclusion: It will summarize the main findings and their significance. Restating the research problem and objectives and providing recommendations for future research or practical applications.
• References: Lists all the sources cited within the paper following a specific citation style.
• Appendices (if applicable): Include additional supplementary materials such as a survey or detailed statistical analysis.

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

Javier Santiago Ortiz Correa

Lead Researcher Economist, 4 months @3000: = 12k

Gonzalo de los Rios

Researcher Economist, 4 months @3000: = 12k

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

The real value of this research extends beyond immediate outcomes or financial gains. It lies in its long-term impact on knowledge advancement, Catalyst progress, and Cardano interaction. Our research will contribute to building a better structure and frame by providing a measurement of the current Catalyst economy.

[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