Multi-Sig Wallet for Cardano's Organizational DReps - Feasibility Research

[GENERAL] Name and surname of main applicant

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

[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] Summarize your solution to the problem (200-character limit including spaces)

Research the feasibility of Multi-Sig wallet functionality for teams or organizations who have an interest in setting up DRep pools.

[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.”

The project implementation will depend on existing Multi-Sig wallet entities such as RoundTable, Summon, and Typhon. These entities will be considered stakeholders as they will help us to understand the feasibility of their systems and how organizations can/may leverage them in the DRep process.

The project implementation will also depend on the diverse Wada network for sourcing research analysts who will aid in the research activities described in the proposal.

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

[GENERAL] Please provide here more information on the open source status of your project outputs

The research output as documented shall be shared publicly on all Cardano public platforms. There will be no restriction for individuals/entities wanting to improve the output or reference the research in their works.

[METADATA] Horizons

[SOLUTION] Please describe your proposed solution

Perception of the Problem Being Solved:

The core issue is that organizations aiming to become Delegated Representatives (DReps) face difficulty registering with Multi-Sig wallets, hindering decentralized governance. This barrier is particularly problematic in networks where decentralization and transparency are core principles, as it discourages participation from collective entities (teams or organizations) that require shared control over assets or governance responsibilities.

If organizations can't easily set up Multi-Sig wallets, they may either resort to more centralized, individual-controlled wallets (which contradicts decentralization motives) or be deterred from participating altogether. Both outcomes are detrimental to expanding decentralized governance through more diverse participation.

Reasons for This Approach:

The approach focuses on researching feasibility because:

• Understanding the Landscape: Before any practical solution can be implemented, it is crucial to understand the existing capabilities, limitations, and opportunities of Multi-Sig wallet technology concerning DRep pools. This includes examining security concerns, user experience, ease of integration, and potential technical challenges.

• Addressing Complexity: Multi-Sig wallets, by design, are more complex than single-signature wallets. They involve multiple parties approving a transaction, which is ideal for organizations but can be a logistical hurdle. A research-driven approach allows us to break down the complexity and identify ways to make it more accessible.

• Customization for Teams/Organizations: Organizations differ from individuals in how they make decisions. Research will focus on identifying how current Multi-Sig solutions fit into this organizational structure and where improvements could be made to ease the setup and use process.

• Decentralization Motive: We aim to empower organizations to contribute to the decentralized network. By making Multi-Sig wallets easier for organizations, we are allowing for a more equitable and participatory governance structure that aligns with the decentralization ideals of many blockchain networks.

Project Engagement:

The project will engage several key stakeholders:

• Web3 Organizations/Teams: These are the primary beneficiaries, as they will use the research findings to facilitate their entry into DRep pools.

• Wallet Providers: Developers and companies creating Multi-Sig wallets will be important partners. Their insights and cooperation will help identify potential improvements to current solutions or help shape new wallet functionalities specific to organizational needs.

• DRep Networks: The Cardano DRep network, will be engaged to ensure that the research aligns with the broader Cardano governance structure.

• Blockchain Developers and Researchers: Technical experts who specialize in cryptography, wallets, and decentralized governance will be vital contributors, helping to ensure the research is technically sound and identifying the most viable paths forward.

Demonstrating or Proving Impact:

To prove the effectiveness of this solution, the project will focus on several measurable outcomes:

• Research Deliverables: A comprehensive report on the feasibility of Multi-Sig wallet functionality for organizations, including recommendations for improvement or new developments. This document will include an analysis of technical, usability, and security aspects.

The following metrics will be realised outside this proposal scope (timeline, budget, and deliverables):

• Adoption Rate: After the research and pilot phases, we will measure the number of organizations adopting Multi-Sig wallets for DRep pools. This adoption rate will be a strong indicator of whether the solution makes it easier for organizations to participate in decentralized governance.

• Feedback from Participants: Direct feedback from organizations and DRep networks will be collected to gauge user experience and satisfaction. Positive feedback would affirm that the research addressed the pain points effectively, while any constructive criticism would guide future iterations.

• Governance Participation Data: By tracking the increase in organizations participating in decentralized governance post-solution implementation, we can directly measure the impact on decentralization. More diverse representation in governance (in terms of the number of participating organizations) will be a clear sign of success.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

Value Brought to the Cardano Community:

• Increased Participation in Governance: This will lead to broader representation in Cardano’s decentralized governance, as more organizations will have the tools they need to securely and effectively manage their voting power. Greater organizational participation will lead to more robust decision-making, as different perspectives and expertise from various sectors will enrich the governance process.

• Improved Security and Accountability: Multi-Sig wallets inherently provide enhanced security, as multiple signatures are required to authorize transactions. This means organizations can distribute control among trusted members, mitigating the risks of unilateral decision-making or fraud.

• Strengthened Decentralization: True decentralization is not just about the number of participants but also about the diversity of participants. By making it easier for organizations to join DRep pools, the solution fosters greater decentralization, as decision-making becomes less concentrated in the hands of individual actors and more distributed among a diverse group of organizations.

• Attracting institutional involvement: Simplifying Multi-Sig wallet functionality for organizations will make Cardano more appealing to institutional actors. Companies and other collective entities will see Cardano as a platform where they can participate in decentralized governance without compromising their need for shared control and accountability. This could benefit the network's reputation and growth.

Measuring Impact

• Increased DRep Participation: A primary measure of success will be the number of new organizations registering as DReps after the solution is implemented. This will indicate how effectively the research outcomes are helping organizations overcome the barriers to participation in governance. A related measure will be the diversity of organizations joining DRep pools ranging from startups to larger enterprises, non-profits, and DAOs.

• Governance Metrics: The project will monitor voter participation rates and voting activity among organizations using Multi-Sig wallets. A notable increase in participation would demonstrate that the solution is enabling more organizations to actively engage in governance decisions.

Sharing Outputs and Opportunities

• Research Publication: A detailed report on the feasibility study will be published and made accessible to the Cardano community, including blockchain developers, DRep networks, and organizations interested in participating in Cardano governance. This report will outline key findings, best practices for Multi-Sig wallets, and recommendations for further improvements. The report will be published on public research platforms and shared through Cardano community forums, Cardano research platforms, and Wada social media channels to ensure maximum reach and engagement.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Our capability to deliver the project with high levels of trust and accountability is supported by several key factors, including the team's expertise, transparent processes, risk management strategies, and commitment to community engagement. Here's how we ensure trust and accountability throughout the project:

Experienced and Qualified Team:

• Expertise: Our team consists of skilled professionals with a deep understanding of blockchain technology, decentralized governance, and wallet functionality. The key team roles would include:
• Project Lead/Coordinator: Responsible for overseeing the entire project, with a proven track record of managing complex blockchain initiatives.

• Community Manager: Positioned to ensure the Cardano community is not left out of the project life cycle.

• Governance Experts: Specializing in decentralized governance systems, ensuring that the solution aligns with Cardano’s broader governance framework.

• Research Analysts: Skilled in conducting comprehensive landscape assessments and gap analysis, ensuring that the project is data-driven and evidence-based.

• Proven Background: Each member of the team has a portfolio of successful projects, which demonstrates our collective ability to deliver high-quality, reliable outputs. This gives us a strong foundation of trustworthiness in the Cardano ecosystem.

Clear and transparent processes:

• Defined Milestones: We have laid out clear, structured milestones that guide the project’s progress. These milestones will be tracked and reported regularly to ensure transparency.

• Regular Updates: We are committed to providing the Cardano community with regular updates on the project’s progress, challenges, and achievements. This will include:
• Monthly progress reports.
• Detailed milestone completion summaries.

• Stakeholder Involvement: We will engage stakeholders throughout the project to ensure that there is continuous community input.

Budget Accountability:

• Cost Management: We have provided a transparent and detailed budget breakdown for each milestone, ensuring clarity on how funds will be used.

• Financial Reporting: As the project progresses, we will provide detailed financial reports to demonstrate how funds have been allocated and spent. 

Commitment to Security and Compliance:

• Security Focus: We will adhere to best practices in security protocols, testing, and auditing, ensuring that solutions are both robust and safe for organizational use.

• Compliance with Cardano Governance: We will ensure that the project adheres to the governance standards of the Cardano ecosystem.

Track Record of Delivering Blockchain Projects:

• Previous Successes: Our team members have a strong track record of delivering successful blockchain and governance-related projects. This includes work on Cardano governance workshops, governance frameworks, and decentralized applications. This proven ability to execute complex projects builds trust that we can deliver this initiative with high quality and within the stipulated timeframe.

• Reputation in the Community: Our team members are well-known within the Cardano ecosystem and broader blockchain community, which lends credibility to our project. The relationships to be established with key stakeholders would further reinforce our commitment to delivering results that align with Cardano’s vision.

Feasibility Validation Process:

To validate the feasibility of our approach, the project will follow a structured, research-driven methodology involving multiple stages of evaluation and testing. The validation process will focus on both technical and practical aspects to ensure that Multi-Sig wallet functionality can successfully support organizations in setting up Delegated Representative (DRep) pools. Here is how feasibility will be validated:

• Evaluation of Existing Multi-Sig Solutions

The first step will involve analyzing existing Multi-Sig wallet technologies within the Cardano ecosystem and other blockchain networks. This involves assessing the technical infrastructure, security protocols, and usability for teams and organizations.

The evaluation will focus on compatibility with Cardano’s governance structure (e.g., CIP-1694), including how Multi-Sig wallets integrate with voting mechanisms and DRep registration processes.

Key criteria for validation will include:

• Security: Is the current Multi-Sig implementation secure enough for organizational use?

• Scalability: Can the solution handle increased demand from multiple organizations wanting to participate?

• User Experience: Is the setup process for Multi-Sig wallets user-friendly, or are there significant barriers?

• Gap Analysis:

After evaluating existing solutions, a gap analysis will be conducted to identify where current Multi-Sig wallet functionalities fall short for organizations aiming to become DReps. This could include issues like a complex user interface, limited customization, or challenges in transaction coordination among multiple signatories.

This gap analysis will highlight areas that need improvement and will guide the research toward potential upgrades or new features.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Initial Landscape Assessment 

Duration: 1 Month

Objective: Conduct a thorough evaluation of the current state of Multi-Sig wallets in the Cardano ecosystem.

Key Activities:

• Analyze available Multi-Sig wallet technologies and their compatibility with decentralized governance (DRep pools).

• Identify the key challenges organizations face when using Multi-Sig wallets for the DRep process.

• Establish baseline security, scalability, and usability requirements for organizational use.

• Document findings as v1

• Submit v1 for peer review exercise

• Modify v1 to capture peer review suggestions and graduate to v1.1

Deliverable: Research Paper v1.1 detailing the state of Multi-Sig wallets in the Cardano ecosystem.

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Milestone 2: Feasibility Study and Gap Analysis and Research Publication

Duration: 1 Month

Objective: Determine the shortcomings of current Multi-Sig solutions and how they could be tailored to fit the needs of organizations participating in governance.

Key Activities:

• Conduct a gap analysis based on organizational requirements (security, ease of use, shared control).

• Outline the improvements or innovations required to address these gaps.

• Document findings as v1.2

• Submit v1.2 for peer review exercise

• Modify v1.2 to capture peer review suggestions and graduate to v1.3

Deliverable: Research Paper v1.3 detailing the state of Multi-Sig wallets in the Cardano ecosystem, identifying potential solutions, and detailing required improvements for successful organizational adoption.

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Final Milestone: Close-out Report

Duration: 1 Month

Objective: Publicate the research paper and compile the comprehensive project close-out report.

Key Activities:

• Publish the research paper v1.3 on suitable research platforms and share it across various Cardano community platforms.

• Draft a detailed close-out report for the project completion.

• Submit the close-out report for approval.

Deliverable: Research paper v1.3 is published, and the project close-out report is submitted and approved.

[RESOURCES] Who is in the project team and what are their roles?

Nana Safo (Project Coordinator)

Role: With his 4 years of experience in Cardano governance, and 6 years of experience in project management, he shall oversee the overall direction of the project, coordinate between team members, ensure milestones are met on time, and manage stakeholder communication. His contributions to initiatives like Boosting Cardano in South Africa, Cardano Recycling Dapp, Landano.io, Win-Win Mediation, and events (Cardano workshops, conferences, hackathons, etc,), etc. showcase his ability to manage resources efficiently and deliver results.

Responsibilities:

• Develop and maintain the project timeline and budget.
• Ensure effective collaboration among team members.
• Communicate with stakeholders, including Cardano’s governance bodies
• Report on project progress and key outcomes.

Relevant Skills: project management, decentralized governance, and excellent organizational skills.

Samuel Kobi (Community Engagement Manager)

Samuel, a renowned community manager who is the Hubs Coordination Lead at Wada Global Ltd., brings his expertise in community management to the project to ensure the Cardano community is not left out of the project life cycle. Samuel has actively participated in governance workshops in the ecosystem and serves as an L1 reviewer for Project Catalyst. He contributes to decentralized governance and community-driven initiatives.

Responsibilities:

• Keep the community informed and build relationships with key players.
• Organize surveys, interviews, and focus groups to collect community input.
• Develop blog posts, social media updates, and guides to educate the community.
• Track how the community feels and report insights to the team.
• Ensure the project addresses the needs and concerns of the Cardano community.
• Make sure outreach efforts are accessible to all community members.

Relevant Skills: Communication, relationship building, event planning, social media management, feedback collection, and problem-solving.

Wada (Resource Partner)

Wada is a renowned blockchain advocacy entity with vibrant footprints across the length and breath of Africa. Their core activities since 2020 has led to the wide adoption of Cardano in the African region, yielding meaningful contribution from a pool of diverse experts. With a greater network of diverse experts, Wada is well positioned to resource this project with research analysts who would deliver great outputs.

Wada's research analysts will be in charge of conducting in-depth research, gathering information, and offering insights on existing solutions and gaps in the current Multi-Sig wallet landscape. Their work will inform decision-making and strategy for developing a tailored Multi-Sig wallet solution for the Cardano ecosystem soon. Their responsibilities will be:

• Conduct a Landscape Assessment: Perform a comprehensive analysis of existing Multi-Sig wallet solutions, including Cardano-native and third-party wallets.

• Analyze Multi-Sig Wallet Technologies: Research and document how Multi-Sig wallets function from a technical perspective, focusing on aspects such as security, usability, scalability, and governance integration.

• Evaluate governance models and DRep requirements: Research governance structures, particularly those related to DReps in Cardano, and how Multi-Sig wallets can support decentralized decision-making.

• Gap Analysis: Identify gaps between current Multi-Sig wallet offerings and the specific needs of organizations wishing to become DReps.

• Prepare reports and presentations: Synthesize research findings into reports and presentations for project stakeholders, including the Cardano community, and governance bodies.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Milestone 1: Initial Landscape Assessment

(Month 1)

Required Resources and Costs:

• Personnel:
• Research Analysts (x3) (full-time): Responsible for conducting landscape research and synthesizing findings.
• Cost: ₳6,000 (1 month)
• Project Lead/Coordinator (x1) (full-time): Manages project execution and liaises with stakeholders.
• Cost: ₳2,500 (1 month)
• Community Engagement Manager (x1) (full-time): Coordinates with stakeholders to present findings, and organizes virtual project meetings.
• Cost: ₳1,500 (1 month)
• Community Engagement and Data Collection:
• Surveys and interviews with dRep participants.
• Cost: ₳1,000 (survey tools, incentives for participants)
• Software and Tools:
• Research tools (e.g., access to data sources, research platforms).
• Cost: ₳500 (for data access or subscription fees)
• Operational Costs:
• Cost: ₳1,150

Total Cost for Milestone 1: ₳12,650

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Milestone 2: Feasibility Study, Gap Analysis, and Research Publication

(Month 2)

Required Resources and Costs:

• Personnel:
• Research Analysts (x3) (full-time): Leads the feasibility study and gap analysis, and prepares the report.
• Cost: ₳6,000 (1 month)
• Project Lead/Coordinator (x1) (full-time): Oversees progress, coordinates with researchers, and ensures timely completion.
• Cost: ₳2,500 (1 month)
• Technical Consultant (x1) (part-time): Assists in analyzing technical feasibility, including Multi-Sig wallet setup.
• Cost: ₳1,000 (0.5 month)
• Community Engagement Manager (x1) (full-time): Coordinates with stakeholders to present findings, and organizes virtual project meetings.
• Cost: ₳1,500 (1 month)
• Publication and Design:
• Report preparation, including professional editing, layout, and publication design.
• Cost: ₳2,000 (freelance designer/editor)
• Software and Tools:
• Design and content creation tools (e.g., Adobe Creative Cloud, Figma).
• Cost: ₳1,000 (1 month subscription)
• Community Engagement:
• Further engagement for validation of findings through feedback from dReps and stakeholders.
• Cost: ₳1,000 (surveys, interview incentives)
• Operational Costs:
• Cost: ₳1,500

Total Cost for Milestone 2: ₳16,500

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Final Milestone: Publication and Close-out Report

(Month 3)

Required Resources and Costs:

• Personnel:
• Project Lead/Coordinator (x1) (full-time): Finalizes the report, oversees project close-out, and organizes stakeholder engagement sessions.
• Cost: ₳2,500 (1 month)
• Research Analysts (x3) (part-time): Supports report completion, ensures data accuracy, and assists in final presentation.
• Cost: ₳3,000 (0.5 month)
• Community Engagement Manager (x1) (full-time): Coordinates with stakeholders to present findings, and organizes virtual project meetings.
• Cost: ₳1,500 (1 month)
• Publication and Presentation Costs:
• Final report publishing (online and print if needed).
• Cost: ₳1,500 (graphic design, publishing tools)
• Community Engagement and Feedback:
• Ongoing community feedback to validate final recommendations.
• Cost: ₳1,000 (survey tools, incentives for post-report feedback)
• Operational Costs:
• Cost: ₳950

Total Cost for Final Milestone: ₳10,450

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Total Project Budget

• Milestone 1: ₳12,650
• Milestone 2: ₳16,500
• Final Milestone: ₳10,450

Sub-total: ₳39,600

• Miscellaneous: ₳3,960

Total = ₳43,560

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

Enabling Decentralized Governance

• Key Benefit: The project focuses on solving a major challenge, helping organizations become active DReps in Cardano’s decentralized governance system. By making the process easier and more secure through Multi-Sig wallets, the ecosystem can expand participation in decentralized decision-making.

• Value: More DReps means broader and more representative governance, which is essential for maintaining Cardano’s ethos of decentralization. The value of having a more diverse range of decision-makers and stakeholders outweighs the cost in the long run.

Security and Trust

• Key Benefit: Multi-Sig wallets offer enhanced security, which is critical when handling large funds or managing important governance roles like DReps. The feasibility study and gap analysis will ensure that the solution is robust and minimizes security risks.

• Value: Given the importance of security in the blockchain ecosystem, investing in a thorough research and implementation plan for Multi-Sig wallet integration reduces potential vulnerabilities. This proactive approach will help prevent costly issues related to fraud or mismanagement in governance, saving future costs.

Lowering the Barriers to Entry for Organizations

• Key Benefit: Organizations often face technical barriers when attempting to participate in decentralized ecosystems. By providing a comprehensive solution for registering and managing Multi-Sig wallets, the project removes these obstacles, encouraging more organizations to join as DReps.

• Value: Increasing the number of organizations participating in governance not only strengthens the network’s decentralization but also brings more expertise and resources into the ecosystem. This growth in participation has a long-term value that far exceeds the initial project costs.

Innovative Research and Development

• Key Benefit: The project involves cutting-edge research into the feasibility of Multi-Sig wallet technology for governance purposes. The insights gained from this project can be shared with the broader Cardano ecosystem, contributing to innovations in governance and security.

• Value: The research conducted will provide insights not only for this project but also for future governance and wallet-related projects on Cardano. By pioneering solutions in this space, the project serves as a foundation for further developments, multiplying the initial investment's impact.

Cost Efficiency Breakdown:

• Personnel Costs: While the largest portion of the budget, these costs are allocated to highly skilled individuals who bring expertise crucial to developing a secure and functional solution. Their work directly translates into high-quality deliverables.

• Research Tools: A relatively modest portion of the budget goes into research tools and databases, which are essential for conducting a thorough feasibility study. These tools ensure that decisions are made based on solid data and insights.

• Operational Costs: The operational costs are kept minimal but are necessary for collaboration, stakeholder engagement, and coordination, ensuring the smooth execution of the project.