Accelerating Innovation: Bring TicketMe, most successful Japanese NFT Ticketing company, to Cardano

[GENERAL] Name and surname of main applicant

Daisuke Miyashita

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

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Daisuke Miyashita / 宮下 大佑

Chief Executive Officer (CEO) / 代表取締役

Upon enrolling in the School of Political Science and Economics at Waseda University, he founded an e-commerce site specializing in apparel. After successfully selling the business, he engaged in research activities at the independent venture capital firm East Ventures. In June 2022, he established TicketMe Inc. and assumed the role of CEO.

Yusuke Sakamoto / 坂元 勇介

Chief Technology Officer (CTO) / 最高技術責任者

After graduating from the Department of Information Engineering at Osaka Prefecture University of Engineering, he gained experience in financial systems and web application development at two companies. Inspired by the Polygon Hackathon, he later joined TicketMe. His hobby is developing trading bots, and he secured a grant for developing a trading support tool on dYdX, a leading decentralized exchange (DEX).

Hidenori Nakai / 中井 秀範

Independent Director / 社外取締役

During his 34-year tenure at Yoshimoto Kogyo, he was involved in a wide range of operations, including managing numerous famous talents and organizing events. After leaving the company in 2015, he was appointed Executive Director of the Japan Music Business Association. He is dedicated to promoting the music industry.

Motoshima Kotaro: Lawyer and President of RulemakersDAO

Initiatives as RulemakersDAO, design around legislation

Back ground:

Attorney at Law

Mori Hamada & Matsumoto, one of the largest law firms in Japan

Governance making when implementing distributed identity solutions, and designing business flow and UI/UX designs that are legally compliant based on an understanding of personal information laws and regulations.

Background

2017: Graduated from the University of Tokyo Faculty of Law and entered the University of Tokyo Law School in the same year.

2019: Withdrew from the same law school and founded zingzing, a general incorporated association.

2020: Registered as a lawyer and joined Mori Hamada & Matsumoto. Also begins working as a social coordinator.

2022: Seconded to Daiichi Sankyo Co.

2023: RuleMakersDAO board member

 

Specialties

He has experience in startups, technology (FinTech, web3, metaverse, data/personal information/AI, medical/pharmaceutical/biotech, R&D in general, etc.), and China, from both the startup/researcher side and the VC/larger company side, and has been a business consultant and a member of the board of RuleMakersDAO. He provides legal support from both the startup/research side and the VC/larger company side, drawing on his own entrepreneurial experience and experience in managing entrepreneurial communities, and incorporating a business consulting perspective. In addition, he is also involved in children's rights (including on line counseling by lawyers), refugees, and legal education.

 

Other Activities

He has been involved in the RuleMakersDAO, which provides policy proposals on social issues from a legal perspective, through the Diet Members' Caucus. Nomad visa'' was included in the basic policy of the government in 2023.

Linkedin

Facebook

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

9

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

Yes

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

TicketMe,the largest NFT ticket platform in Japan, will use Cardano to build a globally available and stable NFT ticket platform to prevent fraudulent resales and return resale proceeds to organizers.

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

Yes

[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.”

We have a Web3 engineer in-house, so basic design is feasible; however, we are receiving advice from NMKR regarding NFT issuance on Cardano.

We use Microsoft Azure in the background to build our applications. We will also use Stripe as the payment method.

Currently we have permission from both organizations for this build on Cardano.

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

No

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

Since it will use part of the service we already provide on Polygon, the off-chain part cannot be made public for the security protection of the service.

However, the on-chain part is particularly important for this project, and we will release it as open source.

[METADATA] Horizons

DAO

[SOLUTION] Please describe your proposed solution

日本語訳のドキュメントはこちらになります。

Problem Recognition

Approximately $30 billion worth of tickets are in circulation worldwide, of which about $10 billion are illegally resold. Organizers are losing revenue due to this unauthorized resale. It is particularly difficult to identify the resellers because it is difficult to clearly identify the purchasers.

In addition, Polygon, which TicketMe is currently using, has a gas fee that fluctuates depending on the congestion in Poygon Chain, making it difficult to provide a stable structure for the increasing volume of tickets sold in the future.

Furthermore, within DAOs structured using the Cardano chain, there is no marketplace that allows for the free buying and selling of NFT tickets (such as accommodation vouchers or AI usage tickets etc.) using utility tokens in combination with the Cardano chain. As a result, even when using the Cardano chain within a DAO, it is unable to scale.

※Due to global regulatory considerations, within DAOs, utility tokens are airdropped to contributors and others. These utility tokens are then used to acquire NFT tickets that grant access to DAO services. It is envisioned that by buying and selling the NFT tickets themselves, users can either convert them into fiat currency or access DAO services using fiat.

Contribution to the Cardano Ecosystem

This project is proposed as a way to promote Cardano through the sale of event tickets. The Cardano blockchain is expected to enable secure and transparent ticket transactions and contribute to the expansion of Cardano's active user base. Cardano's active user base.

Tokenizing tickets as NFTs not only prevents purchases for resale purposes and fraudulent use but also allows profits from resales to be fairly returned to the ticket providers (organizers). Additionally, it enables the collection and use of data that was previously inaccessible, making it one of the most suitable use cases that fully utilizes the unique features of blockchain and NFTs. Furthermore, this concept can be applied not just to event tickets but to the tokenization of any type of rights, allowing for the creation of new markets. We believe this could become one of the first services to achieve mass adoption using the Cardano blockchain.

Approach and Rationale

The NFT ticket is our proprietary technology that prevents resale after event admission, provides proof of visit after purchase, and eradicates fraudulent resale. This technology is our invention, the "Token Transfer Lock Control Program," and is protected in Japan as Patent No. 7372712.

Patent overview image

This increases the transparency of ticket purchase and ownership and returns profits to the organizer. It also implements a user ranking system on the Cardano Chain to analyze relationships among users and identify fraudulent resellers.

Project Involvement Targets

A team of engineers under the CTO of TicketMe, Inc. will be responsible for the implementation of this project. They will design the architecture of the service and contribute to the project by writing code.

Proof of Impact

During the initial phase of the project, Cardano Ticket will be used at a 5,000-person event in Japan. Through this implementation, the project will be declared successful when more than 10,000 NFT tickets have been issued.

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

Provide value to the community

This project will dramatically increase Cardano's user base and increase blockchain transaction activity through event tickets.

Events will help promote Cardano because they will attract the attention of cryptocurrency enthusiasts as well as the general public. In addition, it serves as a means of identifying wallets held by real people and addresses the problem that exists with many bots. NFT tickets that are used in events serve as proof that the person is an actual, existing user.

Measuring Impact

The success of the project will be measured through the implementation of Cardano Ticket at a 5,000 person event and the issuance of over 10,000 NFT tickets. Having previously implemented this at Polygon for events of over 12,000 people, we are confident that similar results can be achieved on Cardano.

Sharing of Deliverables and Opportunities

Project outcomes and opportunities will be disseminated through videos documenting the actual event and implementation. These videos will be uploaded to platforms such as YouTube and Vimeo and shared through Cardano related community forums and social media. This approach allows developers and the general public to see first-hand the practicality and results of the project and encourages interest and participation in the Cardano ecosystem.

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

Provide value to the community

This project will dramatically increase Cardano's user base and increase blockchain transaction activity through event tickets.

Events will help promote Cardano because they will attract the attention of cryptocurrency enthusiasts as well as the general public. In addition, it serves as a means of identifying wallets held by real people and addresses the problem that exists with many bots. NFT tickets that are used in events serve as proof that the person is an actual, existing user.

Measuring Impact

The success of the project will be measured through the implementation of Cardano Ticket at a 5,000 person event and the issuance of over 10,000 NFT tickets. Having previously implemented this at Polygon for events of over 12,000 people, we are confident that similar results can be achieved on Cardano.

Sharing of Deliverables and Opportunities

Project outcomes and opportunities will be disseminated through videos documenting the actual event and implementation. These videos will be uploaded to platforms such as YouTube and Vimeo and shared through Cardano related community forums and social media. This approach allows developers and the general public to see first-hand the practicality and results of the project and encourages interest and participation in the Cardano ecosystem.

[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?

We have been working on the NFT Ticket project for nearly two years now and have sold event tickets for many major Japanese event operators.

We have also completed nearly 220 million yen in funding from SoftBank Group corporate venture capital and other sources, and have sufficient internal risk management in place.

TicketMe Executives

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

Milestone 1: System Design and Initial Development

A: Milestone Outputs

• Completion of the overall architecture and technical design of the ticketing system.
• Development of the project roadmap and timeline.

B: Acceptance Criteria

• Technical design must align with project requirements.
• Approval of the technical design and roadmap by stakeholders.

C: Evidence of Milestone Completion

• Detailed documentation of the technical design and project roadmap.

Milestone 2: Development and Prototyping

A: Milestone Outputs

• Development of a prototype with basic functionalities of the system.
• Collection of initial testing feedback.

B: Acceptance Criteria

• Prototype meets the design specifications.
• Feedback from initial testing is incorporated into the next phase of development.

C: Evidence of Milestone Completion

• Demonstration video of the prototype and a report on test results.

Milestone 3: Full-scale Development

A: Milestone Outputs

• Implementation of the complete functionality of the ticketing system.
• Enhancement of the system’s security and scalability.

B: Acceptance Criteria

• Successful testing of complete functionalities with minimal bugs.
• Security checks and performance assessments of the system meet the standards.

C: Evidence of Milestone Completion

• Detailed report on testing outcomes and code review documents.

Milestone 4: Live Testing and Final Adjustments

A: Milestone Outputs

• Live testing of the system at an actual event.
• Conducting final adjustments and optimizations.

B: Acceptance Criteria

• System performance during the event meets the target criteria.
• Positive feedback from users and event organizers.

C: Evidence of Milestone Completion

• Evaluation report of the live test and aggregated feedback from participants.

Milestone 5: Full Project Deployment and Evaluation

A: Milestone Outputs

• Full commercial deployment of the system.
• Creation of a project impact evaluation report.

B: Acceptance Criteria

• Smooth commercial operation of the system.
• Achievement of initial targets (usage at an event with 5,000 attendees, issuance of over 10,000 NFT tickets).

C: Evidence of Milestone Completion

• Announcement of commercial deployment and the impact evaluation report.

Final Milestone: Enhancing Community Engagement

A: Milestone Outputs

• Regular dialogues and feedback sessions with the user community.
• Support and promotion of community-led development initiatives.

B: Acceptance Criteria

• Active participation and feedback from the community.
• Development proposals are approved through community voting.

C: Evidence of Milestone Completion

• Minutes from community meetings and feedback reports.

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

The development of our new ticketing service will be undertaken by a dedicated team of four engineers from TicketMe, Inc. These individuals are not new hires but seasoned professionals who have played integral roles in the development of existing services at TicketMe. Their expertise spans software development, system architecture, blockchain technology, and cybersecurity, ensuring a well-rounded approach to building a robust and scalable ticketing system.

Development Team Composition:

Lead Software Engineer: Focuses on the overall system architecture and integration with the Cardano blockchain. Responsible for leading the development efforts and coordinating with other team members to align the software development with strategic objectives.

Blockchain Specialist: Specializes in blockchain technology and smart contracts. Responsible for implementing secure, efficient, and scalable blockchain solutions specifically tailored to NFT ticketing and verification processes.

Front-End Engineer: Focuses on the user interface and user experience aspects of the ticketing system. Ensures the ticket purchase and management processes are user-friendly and accessible across various devices and platforms.

Back-End Engineer: Manages server-side logic and database management. Ensures all data flows securely between the server and users' devices and that the system can handle the scale required for large events.

Following the development phase, our implementation team will consist of two experienced salespeople from TicketMe, Inc., who will oversee the deployment of the system at a significant event hosting approximately 5,000 attendees. This event will serve as a crucial test and showcase of the ticketing system's capabilities.

Implementation Team Roles:

Senior Sales Manager: Leads the project implementation phase, liaising with event organizers to ensure that their needs are met and that the system's deployment aligns with event logistics. Responsible for the overall project management during the event.

Sales and Customer Support Specialist: Provides on-ground support during the event, assisting attendees and addressing any issues with ticket scanning and verification. Also gathers feedback directly from users to inform future improvements.

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

1.Personnel Costs:

• Engineering Team (4 Engineers): Development of the service over five months.
• Salary per engineer: 400,000 yen/month (100h)
• Total for 4 engineers for 5 months: 12,000,000 yen
• Sales Team (2 Salespeople): Implementation for a 5,000-person event.
• Salary per salesperson: 300,000 yen/month (100h)
• Total for 2 salespeople for 1 month: 600,000 yen

2. Third-Party Services and Licenses:

• Software Licenses (development tools, server software): 2,000,000 yen
• Professional Services:
• Legal services (contract review, intellectual property): 700,000 yen (30h)
• Accounting and audit services: 2,000,000 yen

3. Hardware and Infrastructure:

• Servers and networking equipment for development and testing: 500,000 yen
• Equipment for event (ticket scanners, networking setup): 2,000,000 yen

1. Marketing and Community Engagement:

• Promotional materials, digital marketing campaigns: 1,000,000 yen
• Community workshops and feedback sessions: 700,000 yen

5. Project Management and Documentation:

• Project manager salary: 350,000 yen/month (100h) for 5 months: 1,750,000 yen

Documentation specialists (technical writers Including catalyst support): 1,000,000 yen

6. Miscellaneous and Contingency:

• Contingency fund to cover unforeseen expenses: 1,500,000 yen

Total Estimated Budget:

• Total: 25,750,000 yen=500,000ADA
• Calculations are based on the assumption that 1ADA = 51.5 yen (in principle, costs are paid by ADA).

Notes on Budget Management and Additional Funding

Notes on Budget Management and Additional Funding

• The budget has been constructed to ensure that all critical aspects of the project are well-funded while staying under the maximum limit.
• We have included a contingency fund to manage unforeseen costs effectively.
• Should the project exceed the expected costs, additional funding will be sought through corporate sponsorship or a secondary funding round focused on scalability and enhancement.

Third-Party Products/Services Details

• Software Licenses: Licenses for necessary development tools and server software which are critical for building and deploying the application efficiently.
• Professional Services: Legal and accounting services are essential to ensure compliance with regulations and proper financial auditing.

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

Justification of Costs:

1. Personnel Costs: The salaries for the engineering and sales teams have been set based on the competitive market rates for tech professionals in Japan. According to the latest industry surveys, the average salary for software engineers in Japan ranges from 4 million yen to 8 million yen per year, depending on experience and specialization. We have budgeted approximately 400,000 yen per month per engineer, aligning with these figures. Sales personnel are also compensated at a competitive rate of 300,000 yen per month, reflecting their critical role in deploying and managing the system during large-scale events.
2. Third-Party Services and Licenses: Costs associated with software licenses, legal services, and accounting are benchmarked against typical rates for these services in Japan. Legal and accounting fees reflect the necessity for compliance with local regulations, intellectual property rights management, and financial transparency, which are crucial for maintaining the project's integrity and stakeholder trust.
3. Hardware and Infrastructure: The allocation for hardware and networking equipment is essential for ensuring that the system is reliable and can handle the high transaction volumes expected during large events. This cost is in line with industry standards for similar technology deployments.
4. Marketing and Community Engagement: These expenses are vital for promoting the system within the Cardano community and beyond, ensuring widespread adoption and understanding of the system's benefits. The costs are proportional to typical marketing expenditures for tech startups aiming for rapid market penetration.

Value for Money:

The project represents excellent value for money for several reasons:

• Innovation: By integrating NFT-based ticketing on the Cardano blockchain, the project introduces a novel application of blockchain technology that can set a precedent in the event management industry.
• Security and Scalability: The investment in a secure and scalable ticketing solution not only serves the 5,000-person event but also establishes a model that can be replicated for future events, potentially on a global scale. Tokenizing tickets as NFTs not only prevents purchases for resale purposes and fraudulent use but also allows profits from resales to be fairly returned to the ticket providers (organizers). Additionally, it enables the collection and use of data that was previously inaccessible, making it one of the most suitable use cases that fully utilizes the unique features of blockchain and NFTs. Furthermore, this concept can be applied not just to event tickets but to the tokenization of any type of rights, allowing for the creation of new markets. We believe this could become one of the first services to achieve mass adoption using the Cardano blockchain.
• Community Engagement and Growth: The project directly contributes to the growth of the Cardano ecosystem by engaging both existing blockchain enthusiasts and new users. By successfully implementing this project, Cardano's capabilities are showcased, which can attract further development and investment in the platform.