Wolfram - Shaun Cumby - Digital Asset Disclosure Framework (DADF): Part II - Decentralizing Business

[GENERAL] Name and surname of main applicant

Jon Woodard

[GENERAL] Email address of main applicant

jwoodard@wolfram.com

Additional applicants

Steph Macurdy

Gabriela Guerra

[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?

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.”

No, the project outputs will not be fully open source. While the Wolfram code will be made available, there will be certain aspects of the project that require partitioning of user roles, with logins and permissions. As a result, the project will not be fully open source. To further elaborate, Wolfram code and functionality will be available to relevant stakeholders such as regulators, accounting firms, investors, and law firms, who are involved in the auditing and disclosure process. We will provide access to the necessary Wolfram code to ensure transparency and facilitate participation in the project. The availability of the Wolfram code will enable these stakeholders to review and validate the functionality and compliance of the system. This code will also be made available individually, upon request. 

[METADATA] Category of Proposal

DeFi

[IMPACT] Please describe your proposed solution.

The Digital Asses Disclosure Framework (DADF) is a solution to decentralize a traditional business function; accessing capital markets. This requires buy-in from several key players, but the technology is available now and is what this proposal enables.

DADF II: Video Presentation

After the successful completion of phase 1 of DADF, this second phase of our proposed roadmap is the following: 

• DADF II aims to create a framework for the ultimate, successful deployment of digital equity tokens on the Cardano blockchain for small/medium sized businesses in a regulatory compliant manner that has the support of regulators, digital exchanges, companies, lawyers, accountants and investors.

• The solution includes Wolfram Language technology and Cardano blockchain to allow submissions of financial documents from businesses on chain and enabling regulators to monitor/search/retrieve these required disclosures with tools and techniques that make regulatory compliance far more efficient and accessible.  

• Part 1 of DADF completed the backend functionality, Part 2 of DADF completes the front end functionality.

DADF II is being aimed as a globally licensed framework to digital asset exchanges, in accordance with regulations, to support the vast majority of corporations that are smaller than those that typically raise capital on the traditional markets (NYSE, NASDAQ or TSX). This would strongly encourage digital exchanges to become Cardano-blockchain compliant.

 

• Digital equity tokens can allow small and medium-sized businesses to access capital effectively; however, current implementations have not succeeded. This is a result of fragmented platform of policies, weak regulatory support and a poor disclosure framework desired by regulators and investors. We are proposing the second part of our innovative technology and policy framework that can transform how companies access capital and how investors can have access to these companies. 

The CEO of the framework, Shaun Cumby, has extensive experience between securities-based prospectus offerings and a strong understanding of blockchain technology. Shaun has used and requires the Wolfram technology stack for this solution and will focus on the needs of regulators, exchanges, companies and investors. Wolfram Blockchain Labs will facilitate the technological aspects of this second part proposal, as we have already demonstrated capabilities for completion in the first part. 

• Shaun has met with digital and traditional exchanges, law firms, accounting firms and regulators in both the US and Canada. A large law firm in Canada has committed to the project, and we are in discussions with a Big Four accounting firm. These partners will focus on the policy aspects of the DADF that need to be regulatory compliant while also creating the electronic forms for companies to stay in continuous compliance in a timely and cost-effective manner. The goal is to onboard a solution with the Toronto Stock Exchange as a partner first.

This solution is a token-based implementation of disclosure documents and prospectus, which create immutable public records of disclosures and off-chain storage of document details. We will create tools to assist regulators in market auditing and continuous disclosure monitoring. This is a new and unique use case for corporate business NFTs, which has the ability to onboard traditional entities into the Cardano ecosystem.

We have completed part 1 of DADF which took 4 months to complete and within budget, which was approved and officially closed out in May 2023. We aim for the same 4 month timeline in part 2 in for this proposal in Fund 10.

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

Our proposed solution, the Digital Asset Disclosure Framework (DADF), directly addresses the challenge of "Products and Integrations" by introducing a novel approach to accessing the capital markets and fostering regulatory compliance on the Cardano blockchain.

1. Businesses submit financial documents which are minted on-chain
2. Accounting and law firms, regulators, and investors search/retrieve these documents to do due diligence
3. Wolfram technology facilitates the front-end and back-end solution of the framework for convenience and ease of use
4. The intention is that by the end of this submission and review cycle, a business will reach regulatory compliance in a cost effective and transparent process.
5. This cost efficiency and transparency are the key's to getting regulatory adoption, which can happen across global jurisdictions.
6. Ultimately, businesses can then launch digital equity tokens and access liquid capital markets in a way they've never could before.

By enabling the deployment of digital equity tokens through our auditing and disclosure framework, we offer a high-impact use case that brings several benefits to the Cardano ecosystem.

The disclosure of financial reporting, particularly on a continuous basis, has been a challenge for regulators, companies and investors in the digital-asset space. DADF seeks to address the parties' concerns with a framework that is completely digital and electronic. The flexibility and immutability of the Cardano blockchain combined with the technology of the Wolfram Language will allow us to create something with profound impact and reach a global audience. Below are several ways we address the challenge:

• Expanded Use Cases: The DADF unlocks new possibilities for businesses, investors, regulators, accounting firms, and law firms to engage with the Cardano blockchain. It provides a platform for businesses to tokenize their assets and raise capital while ensuring compliance, transparency, and equitable outcomes.

• Increased Adoption: By offering a regulatory-compliant path for businesses to access the capital markets, our solution encourages more entities to choose the Cardano blockchain as their preferred platform for tokenization. This increased adoption enhances the overall activity and engagement within the Cardano ecosystem.

• Feedback and Innovation: The implementation of the DADF fosters a feedback loop between businesses, investors, regulators, and other stakeholders. As they interact with the framework, valuable insights and suggestions for improvement will emerge, driving further innovation in the ecosystem. This iterative process will contribute to the development of even more impactful products and integrations.

• Thriving Ecosystem: The DADF contributes to the creation of a thriving ecosystem within Cardano by attracting a diverse range of participants. As businesses tokenize their assets and investors engage with these offerings, the ecosystem becomes more dynamic, attracting developers, entrepreneurs, and other stakeholders who see the potential for building complementary products and integrations.

In summary, our proposed solution, the Digital Asset Disclosure Framework, directly addresses the challenge by providing a regulatory-compliant pathway for businesses to access the capital markets on the Cardano blockchain. As a product and application, DADF not only expands the use cases of NFTs for Cardano but also drives adoption, encourages feedback and innovation, and contributes to the development of a thriving ecosystem of products and integrations. It is also a vision supported by investors.

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

There are two ways to measure success of this project: short-term and long-term success. To be direct, in this proposal we will focus on the short-term measurements of success, while keeping the long-term measurements in mind.

In the short term, an integration test of the working submission functionality combined with the search and retrieval functionality is the best way to measure success. We will provide evidence that, through a user interface, a generic document submitted through the web form is minted on-chain (Cardano) and can then be retrieved from the data base afterward. This process represents what the actual users workflow would be.

Technical demonstrations of the completion of the project will be recorded as a video and shared in the close out report. Shaun Cumby will share the results of simulation testing with potential equity partners; like the Toronto Stock Exchange (TSX), law and accounting firms, and investors.

The long term ideal measure of success for this project is to establish a partnership with the Toronto Stock Exchange, where they would apply DADF to their digital asset trading platform in a way that combines accounting and legal frameworks. Upon establishing partnership with TSX, a test of 10 small businesses would pilot the DADF, likely over a 9-12 month period.

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

We will share the outputs and results of the project in the following ways:

• Technical demos of system functionality (recorded video)
• Simulation testing (documenting user roles)
• General demos with key stakeholders (report from meetings)

Shaun Cumby is building partnerships and collaborative relationships with exchanges, regulatory entities, accounting firms, and law firms. These relationships allow us to work closely with stakeholders to address their specific requirements, ensure regulatory compliance, and incorporate their feedback into the framework. The results of the demonstrations will be key to these groups.

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

Our capability to deliver the project with high levels of trust and accountability is grounded in several key factors:

• Track Record: Wolfram Blockchain Labs (WBL) has a good track record in successfully completing Catalyst projects, including four already completed projects and three nearly complete since Fund 8. This experience has led to developing our ability to meet project objectives, timelines, and budgetary constraints.

• Experienced Team: Our team comprises professionals from diverse disciplines, including blockchain, finance, Wolfram technology, regulatory compliance, and legal/accounting expertise. This multidisciplinary approach allows us to bring a comprehensive and holistic perspective to the project, ensuring that all aspects are addressed with a high level of expertise.

• Shaun Cumby's expertise: With Shaun Cumby's firsthand experience and success in launching Bitcoin/Ethereum ETFs on the Toronto Stock Exchange, we have an individual who directly understands the challenges and requirements of accessing capital markets and compliance regulations. This expertise enhances our understanding of the project's objectives and enables us to develop appropriate solutions.

• On-Time Delivery: We have already completed the first part of the Digital Asset Disclosure Framework (DADF) on time and within budget. This successful completion demonstrates our ability to manage project resources efficiently and effectively. The recognition and recommendation we received from the Cardano catalyst community further reinforce our capability to deliver projects with accountability and quality.

Our track record, experienced team, firsthand expertise, and adherence to strong financial management practices is why we're well-suited to deliver the 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 of the project are to create a front-end implementation for both search/retrieval functionality and document submission functionality. We aim to development an integrated system that facilitates the seamless submission, storage, and retrieval of financial documents. The objective is to establish a cohesive and efficient process within the framework of the DADF, ensuring a smooth and streamlined experience for all users/stakeholders involved.

[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.

1. Design and implement a UI wireframe for submitting a financial document (1 month)
2. Prototype of submission web form
3. Notification system off successful submission
4. Notification system of error handling
5. Design users/roles functionality
6. Implement document submission functionality as a web form in the EPC (1.5 months)
7. Develop main submission form
8. Testing submission form - success and error handling with next step prompts
9. Implement and develop users/roles functionality
10. Test users and roles from admin standpoint
11. Design and implement a UI wireframe for search and retrieval functionality (1 month)
12. The UI is designed to enable searching by company name, type of financial document, addresses, transaction hash or date range. The UI will allow the ability to have the search results be sorted on keys such as name, date or document type
13. Filters with appropriate UI elements, for example: input fields for selection by a company name, pull down menu for selection on categorical fields such as document type, date range selection etc
14. Design and mock-up of search results page. Elements will include: a section for summary of results, what level of details to include in the results, ability to download the results
15. Implement search and retrieval functionality as a web form in the EPC (1.5 months)
16. Connect various UI elements to the appropriate back end for search and retrieval operations
17. Notification of error and description of error type, with recommended action/next step
18. Use Wolfram Language's built in natural language (NLP) capabilities for search assistance
19. Develop and implement the search results page with appropriate interactive elements and ability to download the results
20. Testing search form functionality and the results page

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

1. Design and implement a UI wireframe for submitting a financial document.
2. Deliverables: UI wireframe design for the document submission functionality.
3. Outputs: A visually designed wireframe that represents the layout and components of the document submission UI web page(s).
4. Intended Outcome: To have a clear and well-designed UI wireframe that serves as a blueprint for implementing the document submission functionality.
5. Milestone 2: Implement document submission functionality as a web form in the EPC.
6. Deliverables: Implementation of a web form for submitting financial documents within the Wolfram Enterprise Private Cloud (EPC).
7. Outputs: A functioning web form integrated into the EPC that allows users to input and submit financial documents. Successful submission generates a unique hash and identifier for the minted NFT, with off-chain metadata stored in the SQL database.
8. Intended Outcome: To enable users to securely submit financial documents through a web form. The implementation ensures proper data storage and linkage to the Cardano blockchain through NFT minting.
9. Milestone 3: Design and implement UI wireframe for the search and retrieval functionality.
10. Deliverables: UI wireframe design for the search functionality.
11. Outputs: A visually designed wireframe that represents the layout and components of the search UI and search results web page(s).Wireframe includes search criteria options, sorting capabilities, and display formats for search results.
12. Intended Outcome: To have a well-designed UI wireframe that enables users to search and retrieve specific financial documents based on various criteria. The wireframe ensures a user-friendly and intuitive search experience, enhancing usability and efficiency.
13. Milestone 4: Implement search and retrieval functionality as a web form in the EPC.
14. Deliverables: Implementation of the search and retrieval functionality within the Wolfram Enterprise Private Cloud (EPC).
15. Outputs: A functional web form that allows users to input search criteria and retrieve matching financial documents. Search results are appropriately formatted and displayed as web pages.
16. Intended Outcome: To provide users with a reliable and efficient method to search and retrieve specific financial documents based on their desired criteria.The implementation ensures accurate retrieval of relevant information, facilitating auditing and analysis processes.

These milestones collectively aim to deliver a comprehensive system for submitting, storing, and retrieving financial documents, ensuring a streamlined and efficient process within the DADF framework.

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

1. Design and implement a UI wireframe for submitting a financial document - ₳62,500
2. Prototype of submission web form
3. Notification system of successful submission
4. Notification system of error handling
5. Design users/roles functionality
6. Implement document submission functionality as a web form in the EPC - ₳145,700
7. Develop main submission form
8. Testing submission form - success and error handling with next step prompts
9. Implement and develop users/roles functionality
10. Test users and roles from admin standpoint
11. Design and implement a UI wireframe for search and retrieval functionality - ₳62,500
12. The UI is designed to enable searching by company name, type of financial document, addresses, transaction hash or date range. The UI will allow the ability to have the search results be sorted on keys such as name, date or document type
13. Filters with appropriate UI elements, for example: input fields for selection by a company name, pull down menu for selection on categorical fields such as document type, date range selection etc
14. Design and mock-up of search results page. Elements will include: a section for summary of results, what level of details to include in the results, ability to download the results
15. Implement search and retrieval functionality as a web form in the EPC - ₳145,700
16. Connect various UI elements to the appropriate back end for search and retrieval operations
17. Notification of error and description of error type, with recommended action/next step
18. Use Wolfram Language's built in natural language (NLP) capabilities for search assistance
19. Develop and implement the search results page with appropriate interactive elements and ability to download the results
20. Testing search form functionality and the results page

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

The total addressable market of digital equity tokens (yes, they would be considered securities) of small to medium-sized businesses around the world is in the trillions. However, current regulations in even the most progressive financial markets (USA/Canada) do not know how to handle digital equity tokens. Therefore, the DADF introduces the solution for regulators to adopt which can accelerate a businesses ability to access the capital markets and enhance their growth potential. The total addressable market here is huge and it only requires one regulatory body to demonstrate it's usefulness. DADF will begin in Canada and expand to the USA afterwards. Onboarding businesses to access capital markets directly through Cardano is not a straightforward solution and not just a simple, technological one. It requires many teams bringing the vision to life and that's why we're asking for ~$120,000 to fund this project.

[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