Cardano Tax & Accounting Tool

[GENERAL] Name and surname of main applicant

[GENERAL] Email address of main applicant

Additional applicants

Jeremy Tupper

Vasilia Kratsios

Philip DiSarro

Kim Petry

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

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

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

[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?

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

The backend code for the tax and accounting tool will not be open-sourced, but Integral's product will be available for any project in the ecosystem to purchase and benefit from.

[METADATA] Category of Proposal

[IMPACT] Please describe your proposed solution.

It is extremely difficult for projects on Cardano to maintain transparency regarding treasury expenditure. Furthermore, internal accounting and tax management on Cardano is a nightmare. There is very little infrastructure and tooling to help projects in this regard. Integral is the silver bullet for web3 accounting & tax management. Many projects have reservations about building on Cardano because the ecosystem doesn't have adequate tooling for aggregating onchain data for tax / accounting purposes. By expanding our product to support Cardano, we will make the ecosystem more attractive to new projects (especially those based in the US or Canada) because they will no longer have to worry about not having access to such tooling.

The Integral platform allows organizations to seamlessly aggregate all of their treasury assets & activity real-time, while automating key accounting workflows like gain/loss calculations, fee tracking, & transaction classification. The end result is much more efficient & clear finances, with real-time intelligence to respond to volatile markets. This allows clients to focus on expanding their projects and grow the network, rather than spending time manually attempting to reconcile their treasury. The dashboard and bookkeeping view in the platform allows clients to easily view, track, understand and value their web3 transactions.

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

What products and integrations can be developed or improved that will offer more use cases to the Cardano ecosystem that are high impact and drive more adoption?

Many businesses and VCs have been attracted to Cardano by a variety of extremely desirable features that are strongly suited to large scale DeFi applications including, formal verification for smart contracts and a very large amount of untouched capital in the ecosystem; however, often these entities are dissuaded from choosing Cardano due to the lack of accounting tooling for onchain transactions.

Advanced onchain accounting tooling is especially valuable to VCs. When a VC invests in a DeFi protocol, they want to be able to closely monitor how the treasury funds are being spent, along with the number of vested tokens (belonging to the project team or third parties) and how those tokens are being spent (ex. team is consistently dumping their tokens on the open market). Right now due to the lack of accounting systems in the ecosystem, investing in projects on Cardano is frightening, because you have very little information about whether the treasury and team allocations are being used ethically / responsibly. As it stands, observing a project's treasury activity is extremely laborious; it requires scanning through each and every transaction on the chain, and applying a lot of guess work to determine what each those transactions were for. Integral is the perfect solution to this problem. It is the most powerful crypto accounting stack. Automated bookkeeping, transaction classification, P&L tracking, and treasury visibility.

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

With our advanced crypto accounting stack, Integral can provide a wide-range of benefits to users. A few metrics we will consider for some use-cases are:

General:

• Total number of organizations using Integral

Accounting for Taxes:

• Total time or value saved for end users in adhering to local tax regulations.

Treasury Transparency:

• Total time saved aggregating and classifying transactions from / to the treasury.
• Total time saved in P&L tracking

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

Once Cardano integration is complete, the platform will be available to any project in the ecosystem to demo and integrate with if they are satisfied.

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

Integral already supports a number of other L1 blockchains. The product has been well received by many customers across many chains.

We work not only with a very broad range of clients directly in the Web3 space, but with accounting partners, funds and other distribution partners that allow us to have a broad range of access, building this integration with Integral will give access to our entire growing client list, the opportunity to better manage their Cardano transactions.

This integration would also open the door to building more functionality for clients in the Cardano ecosystem. Currently Integral has built integrations to track NFT’s, royalty revenue and valuation of the NFT’s held, for clients on the Ethereum and Solana ecosystems. Building the Cardano integration can open the door to building this integration for tracking NFT’s in the Cardano ecosystem as well, which is a need in the ecosystem that is not available yet.

With a strong track record of building integrations for other ecosystems and with their being a need in the ecosystem for this integration we believe Integral is the best player to build this out quickly and at a world-class level.

Some clients and testimonials:

• Orange Comet https://integral.xyz/blog/orange-comet-automates-nft-accounting-with-integral
• Superrare - https://twitter.com/thomahawk69/status/1650361340064661504
• dYdX - “Integral did a world class job of customer discovery, on-boarding and engagement”
• Phantom - Having built the integration to Solana from the ground up, we are able to support high volume clients in the ecosystem like Phantom.
• Faraway

Accomplishments:

• The Integral team has a broad range of experience starting and building organizations in the technology space. Our team consists of alumni from Palantir, Amazon, Meta, Citigroup, VM Ware, Paypal and many more.
• Integral has extensive experience building integrations to a number of other networks, natively within our team. We have built the most accurate integration to Solana ecosystem for treasury tracking.
• In a little over a year of operation, Integral works with clients as large as public companies and as small as start-ups on it’s platform.
• Clients have used integral to pass their audit
• Integral holds a SOC 2 type 2 report
• Processed over 30Bn in dollar volume and 50MM on-chain transactions through our system.

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

The main goal for this project is to add support for Cardano to Integral, our crypto accounting platform. We have already integrated with a number of L1 chains, including Ethereum and Solana, and we have the assistance of established Cardano developers, so we are very certain that we will be capable of delivering this.

[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.

Indexer Infrastructure

Build a custom indexer for our solution. Compare with alternatives like Koios, Kupo + Ogmios, and maybe even Scrolls for certain tasks.

2 Months

Transaction Triaging Solution

Create an easy configuration that automatically classifies a large percentage of transactions with spam filtering to decrease noise.

3 Months

Treasury Valuation via Native Asset Pricing

Implement a system to price Cardano native assets to clearly present the current value of the treasury along with the value of incoming and outgoing transactions.

3 Months

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

Indexer Infrastructure

The deliverable here is to have deployed a suitable chain indexing solution for the platform.

Transaction Triaging Solution

The intended outcome is to have a system that is capable of automatically classifying a large percentage of transactions. This also necessitates maintaining a list of transaction classifications.

Treasury Valuation via Native Asset Pricing

The intended outcome is to have the platform capable of providing minute-by-minute pricing for most Cardano native assets and providing price information for incoming and outgoing transactions.

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

Indexer Infrastructure and optimizations and reliability: 160 hours (dev ops)

Automated transaction aggregation parsing for analysis: 250 hours (backend dev)

Transaction classification & triaging: 250 hours (backend dev)

Minute-by-minute pricing and transaction attribution: 200 hours (backend dev)

Front-end integration: 50 hours (front-end dev)

At the average salary for web3 developers this come out to:

₳300500

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

Many VCs and businesses are turning away from Cardano at the door because the lack of accounting / tax stacks that support the chain. Integral is dedicated to expanding visibility of clients treasury within the Web3 space and we believe giving clients visibility into their Cardano transactions is a necessary piece of the puzzle now and will become even more necessary integration as Cardano’s ecosystem grows.

[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.