Cardano Asset Link: Unifying Physical and Digital Commerce, Product-Bound Standard Creation rather than Native Asset or Soul-Bound

[GENERAL] Name and surname of main applicant

Nicolas Caridi

[GENERAL] Email address of main applicant

nic.caridi@gmail.com

Additional applicants

Viviek Patel, Marcus Lee, Campurean Alexandru

[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?

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.”

Project will be fully open sourced. Agreements will not be open sourced.

[METADATA] Category of Proposal

Standards and Regulation

[IMPACT] Please describe your proposed solution.

Our proposed solution aims to create a link between physical and digital assets through a Cardano Native token. We have the technology built for Ethereum currently and will be building the solution on Cardano. Essentially, it is a product-bound token that can only be removed from somebody’s wallet if the physical item is sold. The token will then be recognized only in the new owner’s wallet. We will be creating a new asset standard for these Physical-Bound tokens. 

One major problem in the luxury brand industry is counterfeited goods. Sales of counterfeit goods are estimated to be at $1.7 trillion to $4.5 trillion. Watches, footwear, luxury clothing lines all can be counterfeited. On top of this, paper certificates, QR codes, and other mainstream solutions can be duplicated or faked. Through our proposed solution, we create a digital asset on Cardano that cannot be duplicated or moved to another wallet unless the owner of the physical goods is changed. 

As of now, there is no standard token on Cardano between physical goods (watches, jewelry, antique cars, clothing) and their digital counterparts, particularly in the context of premium brands that seek to uphold their high-value reputation with their physical items. 

By creating the standard to associate physical commodities with a product bound token, Cardano can attract luxury brands, clothing brands, and other physical goods companies to use this solution. A product bound token enables owners of high value physical products to prove ownership of authentic luxury items.

We believe this approach will revolutionize the digital asset landscape for high-value brands. It would maintain the exclusivity of premium products, enable brands to track their high-value customers both in real life and online, and authenticate ownership of the physical goods.

The beneficiaries of this solution will be premium brands that struggle with counterfeited products, as well as consumers who value the products from these brands. 

Our solution will engage the broader Cardano community, blockchain developers, premium brand companies, and end consumers. The impact of our solution will be demonstrated through the adoption rate among premium brands, customer satisfaction, the stability of premium brand values, and an increase in unique, product bound tokens on the Cardano.

This solution is unique as it addresses a gap in the digital asset landscape that is currently unexplored on Cardano. Tracking and proving authenticity of your premium goods enables Cardano to attract premium brands. Moreover, this solution can catalyze building other product related solutions in the supply chain industry.

In summary, our solution presents a unique and innovative approach to preserving the value of premium brands in the digital world, enhancing the customer experience and increasing trust and transparency leveraging the Cardano blockchain.

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

Our proposed solution creates a new standard for connecting physical goods with digital assets to prove authenticity of physical owners using the Cardano blockchain. 

Our solution has several benefits to the Cardano ecosystem:

Attracting new market segments: Our solution will attract premium and luxury brands to Cardano's ecosystem, an untapped sector that will expand Cardano's reach and use-cases.

Enhancing Cardano’s utility: It leverages Cardano's native token capabilities for something more than just digital transactions, making Cardano the blockchain of choice for real-world, high-value asset tokenization.

Increasing Cardano's user base: The solution will bring in more users who value authenticity and are seeking to prove ownership of premium physical goods in the digital sphere. We conservatively estimate an addition of hundreds of brands and thousands of users within the first year post-implementation.

Boosting Cardano’s reputation: By solving a real-world problem regarding luxury goods, Cardano will be seen as a practical and viable solution for real-world problems, elevating its reputation and adoption across developed nations and enterprise businesses.

In essence, our project contributes to strengthening the Cardano ecosystem by extending its utility, broadening its user base, and introducing a new way to leverage Cardano's native tokens. We believe this solution will further establish Cardano as the blockchain of choice for real-world applications, and strengthen its position in the global blockchain arena.

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

The success of our project will be determined by both quantitative and qualitative metrics to give us a well-rounded understanding of the impact and reception of our solution. Here's how we plan to measure success:

Adoption Rate by Brands: A key quantitative measure of success will be the number of premium brands adopting our solution. This indicates the market's acceptance and trust in our product.

Token Transactions: We'll measure the number of product-bound token transactions on the Cardano blockchain. An increase in these transactions suggests that our solution is being actively used, which validates its practicality.

Feedback from Brands & Users: User satisfaction is a significant qualitative metric. We'll collect feedback from brands using our solution and from end consumers who interact with these tokens. This feedback will guide our continuous improvement efforts.

Community Engagement: We'll assess the level of engagement and interaction from the Cardano community, as shown by comments, suggestions, and participation in our forums and social media platforms. This will provide us with invaluable insights and a measure of how well our project resonates with the community.

Scalability: The ability to successfully expand our service to a larger range of brands and types of physical goods will be another measure of success.

We believe these metrics are realistic as they cover both the direct impact (brand adoption, user feedback) and the indirect benefits (community engagement, scalability) of our project.

In terms of Cardano's productivity and growth, our innovation contributes in both the short and long term. In the short term, our project can attract new users and brands to Cardano, potentially increasing transaction volumes. In the long term, by demonstrating a practical use case of Cardano's smart contract capabilities, we can encourage more developers to build on Cardano, further strengthening the ecosystem.

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

Our plan to share the outputs and results of our project is centered around transparency and active engagement with the community, the brands, and the end-users who will interact with our product-bound tokens. We already have the solution built on Ethereum so adding on Cardano functionality will open this blockchain to all those opportunities.

Community Engagement: We will regularly update the Cardano community through various channels like Town Hall, our own social media platforms, and other forums. We aim to keep the community informed about our progress, the challenges we encounter, and the milestones we reach. These updates will not only provide transparency but also allow for valuable feedback from the community. 

Brands and Users Interaction: We plan to work closely with the brands adopting our solution and their users. We'll share with them the effectiveness of our solution in maintaining the value of their premium goods in the digital sphere. We'll also keep them updated on the project's development, new features, and improvements based on their feedback.

Public Presentations and Reports: We plan to share our findings and experiences in the form of presentations at relevant conferences and through detailed reports. This will be an opportunity for us to demonstrate the value of our solution and its impact on the Cardano ecosystem.

Further Research and Development: The results generated from this project will be used as a foundation for further research and development. By analyzing the metrics we gather and the feedback we receive, we can identify areas for improvement and expansion. For example, we might find that certain types of physical goods are more compatible with our solution, or that users prefer specific features. Such insights will guide our future development efforts and help us refine our solution.

By spreading the project's outputs over time and through these different channels, we aim to maximize the project's impact and opportunities. We believe our project will not only bring value to the Cardano ecosystem but will also pave the way for more innovative uses of blockchain technology in the world of physical goods.

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

Our team's capability to deliver this project is backed by a combination of deep technical expertise, industry experience, and proven track record in the blockchain space.

Technical Expertise: Marcus and his development company XCSLabs consists of experienced full stack developers across multiple blockchains, including Cardano. This includes smart contract development, token standards, and integrating blockchain solutions with traditional systems. He is also responsible for the solution built on Ethereum and leading the development of the solution on Cardano

Industry Experience: The team has worked on projects that require us to understand and navigate both the physical goods market and the digital asset space. Our team has worked with some of the top Web3 and luxury brands. Our team has experience across fintech, consumer packaged goods, and countless other industries. We have experience with go to market launches spanning the globe, generating millions of dollars in revenue for tech startups and a payment processing company. This has given us a unique understanding of the challenges and opportunities in linking Cardano with the luxury retail market.

Track Record: We have already built a similar solution on the Ethereum blockchain, which has been successfully adopted by several brands. This not only demonstrates our capability to execute but also gives us a deep understanding of the challenges involved and how to overcome them.

Project Management: Our project management processes are robust and transparent. We follow Agile methodologies, allowing for iterative development and regular opportunities for feedback. We have a clear roadmap and can provide regular updates and reports on progress.

Financial Management: We are committed to managing funds with the highest level of transparency and integrity. We will provide detailed budgets and regular financial reports, and we are open to audits. Funds will be allocated strictly according to the budget, with checks and balances in place to ensure appropriate use.

Community Engagement: We understand the importance of community in the Cardano ecosystem, and we plan to engage actively with the community. This includes regular updates, seeking feedback, and being open to collaborations.

Our team’s combined skills, experience, and established processes make us well suited to deliver this project with high levels of trust and accountability. We are excited about the impact our solution will have on the Cardano ecosystem, and we are committed to delivering on our promises and we will cover any external costs that surpass the current proposal.

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

Our project's main objectives can be categorized into technical goals, market adoption goals, and community engagement goals:

Technical Goals: We aim to develop a standard for product-bound tokens on the Cardano blockchain. This involves:

Finalizing the technical specifications for the product-bound token standard.

• Developing and testing smart contracts for creating and managing these tokens.
• Integrating our solution with luxury brands' existing systems, allowing for seamless linking of physical and digital assets.
• We will validate these goals through rigorous testing, both internally and through third-party audits. We'll also gauge the ease of integration with brands' systems and the functionality of our token in the real world.
• Integrating our solution with current Cardano dApps to ensure effective handling.

Market Adoption Goals: Our target is to have at least five premium brands adopting our solution within a year of development. We will measure this by the number of brands that integrate our product-bound tokens into their systems and the transaction volumes of these tokens on the Cardano blockchain.

Community Engagement Goals: We plan to foster an active and engaged community around our project. We aim to create a vibrant discussion around product-bound tokens, encourage suggestions and improvements, and possibly inspire others to develop applications that interact with our token standard.

We will measure this through the level of community interaction on our communication platforms, the feedback received, and any new projects or initiatives that spring up around our token standard.

As our project is technically inclined and somewhat experimental, we intend to follow Agile methodologies in software development. This allows for iterative development, regular testing, and the flexibility to adapt based on feedback and new insights. Marcus and XCSLabs, with their extensive experience in blockchain development, will be crucial in implementing our approach.

Because we have already built the solution on Ethereum and have worked out a solution on Cardano in principle, we are very confident in its feasibility.

In summary, our project aims to establish a new token standard on Cardano, gain acceptance in the luxury goods market, and stimulate community engagement around our solution. We will measure the achievement of these goals through various means, including technical testing, brand adoption rates, token transaction volumes, and community engagement levels.

[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.

Based on our project requirements and goals, we have broken down our project into the following milestones with associated tasks, timelines, and projected costs. Each milestone marks a significant stage of progress towards our project's objectives.

Milestone 1: Detailed Planning and System Design (4 weeks, $10k)

• Project setup, development of detailed project plan
• Design of system architecture and Cardano token standard
• Analysis of requirements for integration with luxury brands' systems

Success Criteria: Completion of detailed project plan and system design, approval from stakeholders

Milestone 2: Development of Token Standard and Smart Contracts (12 weeks, $30k)

• Development of token standard on Cardano blockchain
• Development of smart contracts for creation and management of tokens
• Testing and debugging smart contracts

Success Criteria: Successful development and testing of token standard and smart contracts

Milestone 3: Integration with Existing Systems (8 weeks, $30k)

• Development of APIs and other required elements for integration
• Integration with brands' existing systems
• Testing and debugging of integration

Success Criteria: Successful integration with existing systems and smooth functioning of tokens

Milestone 4: Alpha Launch and Testing (4 weeks, $20k)

• Alpha launch with selected brands
• Collection and analysis of feedback
• Iterative improvements based on feedback
• Alpha test with Cherubim Clothing Line

Success Criteria: Successful alpha launch, collection and implementation of feedback

Milestone 5: Full Launch and Marketing (8 weeks, $20k)

• Full-scale launch
• Marketing and promotional activities to attract brands and users
• Continued collection of feedback and iterative improvements

Success Criteria: Successful full-scale launch, positive reception from brands and users

Milestone 6: Post-Launch Support and Development (Ongoing, $9k)

• Continuous support for brands and users
• Development of new features and improvements based on feedback
• Regular updates and reports to stakeholders and community

Success Criteria: Positive user feedback, increase in brand adoption, and transaction volumes

We are committed to delivering the project on time and within the budget. We are also prepared to cover any costs that surpass the projected budget.

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

Milestone 1: Detailed Planning and System Design

• Deliverables: Detailed project plan, system architecture design, and a blueprint of the Cardano token standard.
• Outputs: Documentations outlining our plan, design, and specifications.
• Intended Outcomes: A robust plan to guide the development and successful approval from stakeholders.
• Progress Measurement: We will measure progress by the completion of planning documents and development approval.

Milestone 2: Development of Token Standard and Smart Contracts

• Deliverables: Developed token standard and smart contracts.
• Outputs: Codebase and test results.
• Intended Outcomes: Functioning token standard and smart contracts that meet the defined specifications.
• Progress Measurement: We will track progress based on the successful completion and testing of the developed token standard and smart contracts.

Milestone 3: Integration with Existing Systems

• Deliverables: API and other required elements for integration, integrated system.
• Outputs: Integration code, test results, documentation of integration steps and processes.
• Intended Outcomes: Smooth integration of our solution with luxury brands' systems.
• Progress Measurement: Successful integration and functioning of the system as per defined requirements.

Milestone 4: Alpha Launch and Testing

• Deliverables: Launched Alpha version, collected feedback.
• Outputs: Launch report, feedback reports, Clothing Test Run.
• Intended Outcomes: Successful Alpha launch, feedback from brands and users for improvements.
• Progress Measurement: Successful launch and feedback collection.

Milestone 5: Full Launch and Marketing

• Deliverables: Launched product, conducted marketing activities.
• Outputs: Marketing materials, launch report, user acquisition data.
• Intended Outcomes: Successful full-scale launch, increased brand and user adoption.
• Progress Measurement: Successful launch, brand adoption rates, and user acquisition numbers.

Milestone 6: Post-Launch Support and Development

• Deliverables: Provided support, developed new features and improvements.
• Outputs: Support tickets, new feature logs, updates, and reports.
• Intended Outcomes: High user satisfaction, continuous improvements to the system.
• Progress Measurement: Feedback from brands and users, development and deployment of new features.

The outputs and deliverables at each milestone will serve as evidence of progress, while the outcomes will help us assess if we're achieving our broader project goals.

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

Here's a detailed budget breakdown for our project:

Development Costs - $55,000

This will cover the costs associated with developing the Cardano token standard, creating the necessary smart contracts, and building the integration APIs. This includes costs for full-stack development, smart contract development, and code testing.

Integration Costs - $27,000

These are the costs associated with integrating our solution into the systems of luxury brands. This would cover the costs of creating custom integration solutions, testing, and troubleshooting.

Alpha and Full Launch Costs - $10,000

This covers the cost of deploying our solution, conducting user testing, collecting and analyzing feedback, and making necessary improvements.

Marketing and Promotion - $10,000

This is for creating awareness about our solution and encouraging adoption. This would include social media campaigns, sponsored posts, influencer marketing, and other digital marketing strategies.

Project Management and Administration - $10,000

This will cover the costs of managing the project, coordinating with stakeholders, providing regular updates and reports, and other administrative tasks.

Documentation - $5,000

This includes the costs of preparing detailed documentation of our project, from planning to implementation. This would serve as a valuable resource for other projects in the future.

Community Engagement - $2,000

This is for managing our community forums and social media platforms, organizing events, and other community engagement activities.

Our team is committed to managing the funds responsibly and transparently, and we'll provide regular financial updates to the community.

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

The cost of our project represents value for money for the Cardano ecosystem in several ways:

Economic Impact: By attracting premium brands to the Cardano blockchain, our solution could potentially increase the volume of transactions and, consequently, the demand for ADA. Additionally, we're introducing a new use-case for Cardano's smart contracts which could stimulate more innovation and development within the ecosystem.

Strategic Impact: By bridging the gap between physical goods and digital assets, we're positioning Cardano as a trailblazer in the blockchain space. This could increase Cardano's visibility and reputation, leading to further adoption across other industries.

Community Impact: We plan to engage actively with the Cardano community. Our project not only provides a new and exciting use-case to discuss and explore, but it also encourages feedback and collaboration. This contributes to the vibrancy and dynamism of the Cardano community.

Position Cardano as a leader with Enterprise Solutions: Since Cardano is aiming to be the enterprise & government solution world-wide, this can pave the path in one industry to do so. Given that Cardano tokens are native assets, there is more security as a solution for physical bound tokens. Moreover, we create solutions that don’t feel like a complicated interaction with the blockchain, but a seamless interaction that is built on the Cardano blockchain.

The project's costs have been estimated based on average rates in the blockchain development industry. Our team comprises seasoned professionals, and the budget reflects their expertise and the quality of work they produce. Marcus and his company, XCSLabs, have successfully delivered similar projects in the past, which serves as a benchmark for our cost estimates.

Furthermore, considering that our team is willing to cover any additional costs that exceed the current proposal, the risk to the Cardano treasury is limited. This commitment demonstrates our belief in the project and aligns our interests with those of the Cardano ecosystem.

Overall, the cost of our project is justified by the potential economic, strategic, and community benefits it brings to the Cardano ecosystem. The project not only promises immediate benefits but also opens the door for further innovation and development, thereby providing long-term value for money.

[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