[KOET] DMM: Cardano’s Decentralized Virtual Marketplace for Discounted Goods & Services

[GENERAL] Name and surname of main applicant

Le Minh Tuan

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

Entity (Not Incorporated)

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

8

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

No

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

We'll build the world’s first decentralized platform using Affiliate Virtual Stores + Cashback + Token incentive model to reach new users and help merchants grow globally, accelerating mass adoption

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

The GNU General Public License v3.0.

[METADATA] Horizons

E-commerce

[SOLUTION] Please describe your proposed solution

📌Core Problems

Our team's objective is to expand accessibility to Web3 in Vietnam and South Korea by building on-chain applications that are more intuitive and user-friendly for the broader public. While we aim to enhance the overall experience for everyday users, our broader mission is to catalyze the widespread adoption of blockchain technology and ignite innovation across various industries, focusing on Cardano and the retail industry. Some of the core problems we aim to address include:

🍀Mass adoption and real-world usage

For Cardano blockchain technology to gain mass adoption and real-world usage on a global scale, two key factors are essential:

• First, there must be on-chain applications that provide genuine value to people's everyday lives. These applications should solve real-world problems.
• Second, accessibility is crucial. People need to easily understand and use these applications, without the complexities typically associated with blockchain. The user experience must be seamless, intuitive, and integrated into the tools and devices they already use, ensuring that blockchain's potential is accessible to everyone, not just tech enthusiasts.

While the motivation to own tokens is often visible, it's usually not strong enough to overcome the existing barriers. A platform that actively moves closer to users and is driven by something useful for participants is needed to encourage mass onboarding to Web3 in a simple and secure way.

In recent research, over 20% of Vietnam’s total population ( 100+ million), currently own cryptocurrency, more than half of Vietnamese (59%) expressed interest in investing in cryptocurrencies in the future while 31% said that they would use crypto for online payments. This suggests a lack of compelling real-world use cases to attract and retain new crypto users in the country. In our proposal for Fund 13, we requested funds to build and upgrade DMM on Cardano, utilizing Atala Prism for issuing DIDs (decentralized identifiers) and verifiable credentials. The first step toward mass adoption on a global scale is to establish a real-world use case in Vietnam and South Korea through partnerships with merchants such as Samsung, K+ (Vietnam Pay TV provider), Visare (tourist company), and Visa, the world leader in digital payments, leveraging unique features only possible on Cardano.

📌Proposed Solution

DMM is the first decentralized platform to use the Affiliate Virtual Stores + Cashback + Token incentive model to reach new users.

We aim to create a functional connection platform called Decentralized Metaverse Mall 2.0 (DMM) on the Cardano blockchain. DMM will integrate Metaverse, Web3, and partners' existing Web 2.0 online stores, along with payment gateways, to introduce a novel Consume-to-Earn (C2E) model.

To expedite mass adoption, we propose a new approach that bridges the gap between real-world shoppers and Web3 users. This approach will also empower owners of high-traffic locations or physical spaces (called Publishers), such as brick-and-mortal shopping mall, airport, cinema, coffee shops, restaurants, billboards, and more, to generate additional revenue through virtual stores.

DMM brings real-world shoppers (new users) to the crypto space (Cardano ecosystem) by letting DMM come to people. Publishers can create virtual stores to blend into people's everyday life.

DMM will use ADA, VND ( Vietnamese FIAT) as discounted cashback and C2E (a cryptocurrency released by DMM) token as loyalty point when shopper purchase anything from DMM's partners websites as tangible items, including televisions, smartphones, and washing machines, and everyday or digital services such as Pay TV subcribstion, phone bills, utility costs, and visa application fees.

🍀How does the DMM work?

DMM operates as a platform that facilitates the sale of products and digital services. It leverages a set of smart contracts to create a network that directly connects users with merchants (e.g., Amazon, Lazada, Shopee, Samsung Vietnam e-shop) and online payment service providers (e.g., Visa, MasterCard, Momo wallet, Payoo). When DMM encourages users to spend via the application on their smartphone by scanning a QR code at physical virtual stores, merchants pay DMM a sales commission (SC). DMM then shares a portion of this commission with publishers (PC) and shoppers in the form of cashback (CB: in ADA or FIAT) and loyalty tokens (LY: C2E token).

🍀Partners

We are currently collaborating with Samsung, Shopee and Kplus ( Pay TV service) to obtain weekly discounts and secure great sales commissions.

We are also partnering with Visa Re, a fast, convenient, secure, and affordable visa application service (https://visare.io). Vietnamese citizens can apply for visas to any country (Schengen Area, USA, Korea, China, Taiwan, Japan, Australia, Canada, etc.) from Vietnam through Visa Re at very low prices, earning C2E tokens as rewards and receiving cashback in the form of FIAT, vouchers, or ADA.

To crypto users, we encourage staking ADA to earn vouchers. Currently, we've partnered with VILAI, a Cardano stake pool operator, to offer discounted vouchers with values ranging from 100,000 VND to 1,000,000 VND (approximately 5 to 50 USD). To obtain these vouchers, simply create a new Cardano wallet and stake ADA to VILAI. These vouchers can be redeemed within the DMM ecosystem, including Samsung, Shopee, Kplus, and Visa Re.

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

📌Unique Value Proposition

🍀Reachning new users

DMM is the first decentralized platform to use the Affiliate Virtual Stores + Cashback + Token incentive model to reach new users who have no concept of Web 3, by integrating it into their daily lives. DMM's virtual stores approach users in convenient locations, allowing them to purchase items and digital services at lower prices through the cashback program, while also earning their first tokens easily without any additional cost.

🍀Raising awareness of Cardano

In some use cases, sales are not always the objective. It is more about raising awareness of mobile shopping more broadly by encouraging users to explore the value and benefits of blockchain.

🍀Mass adoption through strategic partnerships

Currently, we are partnering with well-known international and local brands to bring their useful items and services to the masses in Vietnam and South Korea. It is easy to scale up to other countries through the partnership and merchant onboarding process. 

📌Success Metrics

To assess the effectiveness of the project and maximize its impact on the Cardano ecosystem, we will focus on the following key metrics:

🍀Product Development and Quality

CSAT (Customer Satisfaction Score) measures product quality based on customer feedback, typically using a rating scale. Higher scores indicate better satisfaction, making it a quick indicator of how well the product meets customer expectations.

Timely Delivery – Confirms the product is delivered as planned.

🍀Contributes to the growth of Cardano

Number of non-crypto users converted to crypto users ( new user): metric measures how many individuals, who previously had no experience or involvement with cryptocurrency, have been successfully transitioned into active crypto users. This metric is important for tracking user adoption and growth within the crypto space, indicating the success of efforts aimed at onboarding new users into the ecosystem.

Awareness of Cardano: This metric measures how many virtual stores opened with the Cardano logo appear in public locations.

[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?

📌The Core team: The strong team possesses expertise and experience, along with the necessary skills, in both Cardano blockchain and the sales/marketing industry. Proven experience with Cardano projects.

1. Project Leader: Tuan Le (Ph.D.) brings 20+ years of experience in Digital Transformation, leading projects at Microsoft, Nokia, Vincom Retail, and TMS Group. He was CIO of Vincom Retail, the largest shopping mall chain in Vietnam with 80 brick-and-mortar malls. Tuan studied and worked in South Korea for 10 years.
2. CTO: Tien Nguyen, who is Cardano Blockchain Support Engineer from Cardano Foundation.
3. Head of Business Development and Partnership: Dan Nguyen, brings 20+ years of experience in Business Development and Partnership from P&G and Nokia
4. Khanh Nguyen: Full stack developer with 2 years of experience. Who successful developed the MVP of DMM.

📌 Partnership

To overcome the 'bootstrap' problem, we are partnering with well-known international and local brands. These partnerships will help us attract a wider user base, starting locally and expanding globally, by incentivizing early participation.

• Partners:
• Samsung, Shopee, Kplus,Visa.
• Visa Rẻ: A fast, convenient, secure, and affordable visa application service specifically designed for Vietnamese citizens.

• Cardano Stake Pool: VILAI pool

📌 Functional prototype running on Cardano mainnet (MVP)

• Demo video - MVP with limited features as below.
• Closed out 100% funded project and brought over 10,065 new users into the Cardano blockchain ( 101% above KPI).

https://youtu.be/hPjiV5vIU-0

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

Define Functionality and Tokenomics - 1 month

Milestone outputs

• DMM Network Purpose Statement: Clearly articulates the network’s mission and value proposition.
• Functionalities Document: Describes key features and services provided by DMM in detail.
• Detailed Project Scope Document: Clearly outlines the project’s objectives, deliverables, and constraints.
• Tokenomics Whitepaper: Details the C2E tokens supply, distribution, staking mechanisms, and governance.
• Token Metrics Spreadsheet: Quantifies token issuance, vesting schedules, and initial distribution.

Acceptance criteria

• Purpose statement aligns with the project’s goals and user needs.
• Functionalities covers essential aspects (e.g., commission tracking).
• The scope document is reviewed and approved by Cardano community.
• Tokenomics aligns with the network’s economic model and incentives.
• Token metrics are well-defined and transparent.

Evidence of milestone completion

• Approved purpose statement accessible to to Cardano community.
• Published functionalities document accessible to Cardano community.
• Published signed-off scope document accessible to Cardano community.
• Published Whitepaper accessible to Cardano community.
• Completed token metrics spreadsheet.

App, Web Design and Build Co-Marketing plan - 2 month

Getting the look and feel right ensures the most important information is where we need it and requirements sign-off with software vendors.

Milestone outputs

• User Interface (UI) Mockups and Wireframes:
• Visual representations of how the application will look.
• Includes layout, navigation, and key elements.
• Helps stakeholders visualize the end product.
• Style Guide or Design System:
• Defines fonts, colors, icons, and other design elements.
• Ensures consistency across screens and components.
• Guides developers during implementation.
• Co-marketing plan with 2 strategic partners.

Acceptance criteria

• UI mockups align with project objectives and stakeholder expectations.
• Style guide adheres to branding guidelines and usability principles.
• Co-marketing document.

Evidence of milestone completion

• Published the Approved UI mockups and wireframes for upgraded website and the 02 mobile apps.
• Published the finalized style guide and system design.
• Published co-marketing plan document.

Virtual Stores templates and Smart Contract Development (Built) - 3 months

This is the largest part of the project. Develop smart contracts and virtual stores for core functionalities and integrate into the DMM.

Milestone outputs

• Smart Contract Code: The core functionality of the DMM network will be written in a secure and well-documented smart contract codebase. This code should be written in a language compatible with Cardano blockchain platform (e.g., Haskell, Plutus or Marlowe).
• Unit Tests: A suite of automated unit tests should be developed to ensure the individual functionalities of the smart contracts work as intended.
• Smart Contract Documentation: Comprehensive documentation explaining the purpose, functionality, and logic behind each smart contract. This documentation should be clear and understandable for developers unfamiliar with the codebase.
• User Interface (UI) Implementation:
• A user-friendly interface based on the approved designs from the Design milestone. This should provide a smooth user experience for all platform functionalities.

Acceptance criteria

• The smart contract code successfully compiles and deploys on a Cardano testnet.
• All unit tests pass, demonstrating the correct functionality of individual smart contract components.
• The smart contract documentation clearly explains the purpose, logic, and expected behavior of each contract.
• The platform is fully functional and allows users and sellers to perform core actions like signup, offer management, commission tracking, and secure wallet transactions.
• The UI is implemented based on the approved designs, ensuring a user-friendly and intuitive experience.

Evidence of milestone completion

• Access to the deployed smart contract code on Cardano test network (on GitHub).
• Documentation of successful unit test execution with test results.
• Finalized and reviewed smart contract documentation readily available for reference.
• A fully functional platform deployed to a staging environment for testing purposes ( Cardano testnet).
• User acceptance testing results demonstrating successful completion of core functionalities by users ( video on Youtube).

Testing and Deployment - 2 Months

 

This phase focuses on thoroughly testing the developed Virtual Stores, set of smart contracts and deploying it on the Cardano mainnet.

1) Smart Contract Audit and Security Testing

Milestone Outputs:

• Smart Contract Audit Report: A comprehensive report from a reputable security firm assessing the smart contracts for vulnerabilities and potential security risks.
• Internal Security Test Report: Documentation outlining the results of internal penetration testing or security checks conducted on the platform to identify and address any security weaknesses.

Acceptance Criteria:

• The smart contract audit report identifies no critical or high-risk vulnerabilities. Any medium or low-risk vulnerabilities should have a documented mitigation plan.
• Internal security testing uncovers no critical security issues that could compromise user funds or platform functionality.

Evidence of Completion:

• A final report from the security firm outlining the audit methodology, identified vulnerabilities (if any), and severity ratings.
• Detailed records of internal security testing procedures and results, along with any implemented mitigation strategies.

2) Beta Testing, User Feedbacks and Deployment

Milestone Outputs:

• Beta Testing Report: A report summarizing the beta testing process, including the number of participants, identified bugs or issues, and overall user feedback on platform functionality and user experience.
• Updated Platform Version: Based on beta testing results, the DMM platform should be updated to address critical bugs and incorporate valuable user feedback for improvement.
• Live Deployed Platform: The DMM network platform successfully deployed on the Cardano blockchain network (mainnet).

Acceptance Criteria:

• Beta testing identifies no critical bugs that significantly hinder core functionalities.
• User feedback from beta testing is positive, indicating a generally smooth user experience and satisfaction with core functionalities.
• The DMM network platform is successfully deployed on the Cardano mainnet and functions as intended.

Evidence of Completion:

• A comprehensive testing report detailing the process, findings, and user feedback.
• Access to the live deployed DMM network platform on the mainnet ( through a public URL).
• Close out report and evident video.

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

📌 CEO ( Proppser)

Minh Tuan Le: (Email: tuan.le@koet.com.vn) https://www.linkedin.com/in/minh-tuan-le-9210448

• Tuan completed his PhD with many publications and led a technical team with 10+ years of experience in software development. Building successfully the first authorized auction platform and Online to Offline ticketing system for Landmark 81, the tallest building in Vietnam.
• Led the mobile app ecosystem for Nokia and Microsoft, with smartphone market share reaching 24% in 2014 (Vietnam ranked number one in the world).
• Former CIO of Vincom Retail, the largest shopping mall chain in Vietnam with 80 brick-and-mortar malls.
• 8 years of experience in blockchain.

🍀 Other reference links

• https://www.slideshare.net/QuangAnh3/vietnam-mobile-day-2012-developer-opportunity-nokia
• http://fit.mta.edu.vn/news-toctcklaptrinhwindowsphone2013.htm
• https://giaoduc.net.vn/giao-duc-24h/lap-trinh-the-he-ke-tiep-di-dong-mang-xa-hoi-dien-toan-dam-may-post55188.gd

📌 CTO & Advisor

Nguyen Anh Tien – Enterprise Technical Specialist

🍀 Experiences:

• Founder of the VILAI stake pool
• Computer science experts
• Working in the Cardano/Crypto space since 2018.
• Deploying many payment systems for major banks, financial institutions, and telecommunications in Vietnam

🍀 Roles:

• Decentralized platform consulting
• Lead Blockchain Team Development and Consulting
• System Integration

🍀Social media

• LinkedIn: https://www.linkedin.com/in/tienna/
• Telegram: t.me/tiennguyenanh

📌Mr. Nguyen Duy Khanh

🍀Title & Experience

• Full-stack developer
• 3 years experience in Cardano blockchain

🍀Contact Point

• Telegram: @khanhnguyen1711
• Email: khanh.nguyen@koet.com.vn

🍀Role: Full-stack Developer

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

📌 We have requested a competitive rate for development, leveraging the talent pool of skilled Vietnamese developers.

• 30$/hour for backend & database developer
• 35$/ hour for a mobile application developer
• 40$/hour for a smart contracts developer
• 20$/hour for QA/QC, UI, UX designer
• 40$/hour for solution architecture
• 30$/hour for Project Manager
• 1 ADA = $0.34 (as of Oct 2024, according to CoinMarketCap).

📌 Proposed cost: 149.000 ADA breakdown as below

🍀 Milestone 1: Define Functionality and Tokenomics - 1 month

Cost: 20.000 ADA ( 13.4%).

Evidence of milestone completion

• Approved purpose statement accessible to Cardano community.
• Published functionalities document accessible to Cardano community.
• Published signed-off scope document accessible to Cardano community.
• Published Whitepaper accessible to Cardano community.
• Completed token metrics spreadsheet.

🍀 Milestone 2: App, Web Design and Build Co-Marketing plan with partners - 2 months

Cost: 35.000 ADA (23.4%).

Getting the look and feel right ensures the most important information is where we need it and requirements sign-off with software vendors.

Evidence of milestone completion

• Published the Approved UI mockups and wireframes for upgraded website and the 02 mobile apps.
• Published the finalized style guide and system design.
• Published co-marketing plan document.

🍀 Milestone 3: Virtual Stores and Smart Contract Development (Built) - 3 months

Cost: 64.000 ADA ( 43%)

This is the largest part of the project. Develop affiliate virtual stores offchain and smart contracts for core functionalities and integrate into the DMM product.

Evidence of milestone completion

• Access to the deployed smart contract code on Cardano test network (on GitHub).
• Documentation of successful unit test execution with test results.
• Finalized and reviewed smart contract documentation readily available for reference.
• A fully functional DMM platform deployed to a staging environment for testing purposes ( Cardano testnet).
• Affiliate Virtual Stores demo.
• User acceptance testing results demonstrating successful completion of core functionalities by users ( video on Youtube).

🍀 Final Milestone: Testing and Deployment - 2 months

Cost: 30.000 ADA ( 20.2%).

This phase focuses on thoroughly testing the developed DMM and deploying it on the Cardano mainnet. There are costs associated with third-party smart contract audits.

1). Smart Contract Audit and Security Testing

Evidence of Completion:

• A final report from the security firm outlining the audit methodology, identified vulnerabilities (if any), and severity ratings.
• Detailed records of internal security testing procedures and results, along with any implemented mitigation strategies.

2). Beta Testing, User Feedbacks and Deployment

Evidence of Completion:

• A comprehensive beta testing report detailing the process, findings, and user feedback.
• Smart contracts audit report document from well-known 3rd party company.
• The updated and improved version of the DMM network platform.
• Close out report and evident video.

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

🍀 Competitive rate for development, leveraging the talent pool of skilled Vietnamese developers.

• 30$/hour for Backend & database developer
• 25$/hour for Designer
• 35$/ hour for Mobile application developer
• 30$/ hour for Web developer
• 40$/hour for Smart contracts developer
• 20$/hour for QA/QC, UI, UX designer
• 20$/hour for Tester
• 30$/hour for Solution architecture
• 30$/hour for Project Manager
• 40$/hour for Product Manager
• 30$/hour for Sales and Partnership Manager
• 1 ADA = $0.34 (as of Oct, 2024, according to CoinMarketCap).

🍀 Infrastructure and hardware (Not requested funded, we had the initial investment).

*/ Cloud infrastructure & Data Design: (Sever system, network, security, cloud services, customer data, customers 360 profiles ..)

~ 1 year = $5,000 ( No fund, We are supported by Microsoft Azure).

*/License Tool & Resources: (Salesforce license for Sales Cloud and Marketing Cloud for user engagement, Art tools, Dev tools, …)

~ $5,000 ( No fund, We are supported by Salesforce).

/*Hardware: (Server, storage, cloud services ..)

~ $4,500 -> no fund (We had the initial investment)

/* Tax(10%) now 0% by support from our government for IT StartUp.

📌 Proposed cost - 149.000 ADA for the innovative product is breaken down as follow

🍀Milestone 1: Define Functionality and Tokenomics - 1 month

Cost: 20.000 ADA ( 13.4%) ~ 6.800 USD

• Solution Architecture ~ 105h x ($30/h) = 3.150 USD
• Product Manager ~ 91h x ($40/h) = 3.650 USD
• Project Manager ~ 50h x ($30/h) = 1,500 USD ( Not requested fund, using in-house resources)

🍀 Milestone 2: App, Web Design and Build Co-Marketing plan with partners - 2 months

Cost: 35.000 ADA (23.4%) ~ 11.900 USD

• Sales and Partnership Manager ~ 60h x ($30/h) = 1800 USD
• Designer ~ 2 x 150h x ($25/h) = 7500 USD
• Marketing specialist ~ 104h x (25$/h) =2600 USD
• Project Manager ~ 50h x ($30/h) = 1,500 USD ( Not requested fund, using in-house resources)

🍀 Milestone 3: Virtual Stores and Smart Contract Development (Built) - 3 months

Cost: 64.000 ADA ( 43%) ~ 21.760 USD

• Smart contracts developer ~ 200h x ($40/h) = 8000 USD
• Mobile developers ( iOS and Android) ~ 2 x 150h x ($35/h) = 10500 USD
• Web developers ~ 109h x ($30/h) = 3260 USD
• Project Manager ~ 100h x ($30/h) = 300 USD ( Using in-house resources, gift for him)

🍀 Final Milestone: Testing and Deployment - 2 months

Cost: 30.000 ADA ( 18.75%) ~ 10200 USD

• Smart Contract audit fee (Pay for an auditing service company, such as Certik, Quantstamp, Trail of Bits or a similar one.): 8000 USD
• Tester ~ 110h x ($20/h) = 2200 USD
• Project Manager ~ 50h x ($30/h) = 1,500 USD ( Not requested fund, using in-house resources)