NFT-protocol for fractionalized ownership and tokenization of real world assets.

[GENERAL] Name and surname of main applicant

André Eilertsen for IAMX AG

[GENERAL] Email address of main applicant

andre@iamx.id

Additional applicants

Patrick Tobler - NMKR

Tim Heidfeld - IAMX

Dennis Mittmann - IAMX

Tim Brückmann - IAMX

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

Project will be fully open source.

[METADATA] Category of Proposal

NFTs

[METADATA] SDG rating

SDG Goals

8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

SDG Subgoals

8.10 - Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

8.2 - Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

8.3 - Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

9.1 - Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all

9.3 - Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets

[IMPACT] Please describe your proposed solution.

Our solution is to develop an NFT protocol that allows for fractional ownership and tokenization of physical/real world assets on the Cardano blockchain.

Unique, rare & high-valued assets have always been in high demand as they have proven to be stable assets that appreciate in value over time. These assets are often out of reach for individual investors due to their high costs and very limited supply.

By tokenizing these assets into NFTs, we can break them down into smaller, affordable fractions, enabling a broader audience to invest in and own these assets. The platform ensures transparency, security, and efficiency for the fractionalized asset ownership process. These assets generate media attention and public interest. It allows Cardano to gain visibility by showcasing the platform's capabilities, educating the public and attracting partnerships.

The tokenization of such items attracts investors, demonstrates technological advancements, and positions Cardano as a leading platform for asset ownership. It combines mainstream appeal with educational value, driving adoption and establishing Cardano's reputation in the space.

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

The proposal directs the challenge by building a platform that enables new use cases and drive adoption.

The primary beneficiary would be the Cardano ecosystem as a whole, but it opens up unique opportunities for other beneficiaries:

Individual Investors: Small investors gain access to investment opportunities in high-value assets, which were previously reserved for large investors, promoting financial inclusion and wealth democratization.

Asset Owners: Tokenizing real-world assets grants asset owners increased liquidity, enabling them to unlock the value of their assets without selling them entirely.

Cardano Ecosystem: Our solution strengthens the Cardano ecosystem by driving adoption and usage of ADA (Cardano's native cryptocurrency) and promoting Cardano's reputation as a versatile blockchain platform.

The platform brings several benefits to the Cardano ecosystem:

Project Engagement

Sport memorabilia, precious metals, art, luxury items & collectibles.

There are little to none limitations for what can be tokenized on the platform and we should see engagement from communities from all categories, including asset owners, investors and collectors. Asset owners in all categories will be able to tokenize their real-world assets on the platform, unlocking liquidity and fractional ownership opportunities. Investors, both small and large, will have access to a diversified asset portfolio previously restricted due to high minimum investment requirements.

Proof of Concept

Additionally, by starting with a notable and historic asset like Nick Heidfeld's Formula One car, we can generate interest and draw attention to the benefits of asset fractionalization using NFTs on Cardano. This is not a show car, but the actual car driven through the 2006-season. Podium car (achieved top 3 placement).

Drivers: Nick Heidfeld, Jacques Villeneuve, Robert Kubica, Sebastian Vettel.

Car: BMW Sauber F1.06, 760 HP.

Conclusion

By fostering real-world asset tokenization, we advance the utility and adoption of Cardano's blockchain while contributing to the growth and stability of the overall ecosystem. Additionally, our project aligns with Cardano's commitment to sustainability and environmental responsibility, as tokenization reduces the carbon footprint of traditional asset ownership and trading processes.

Our proposed platform for tokenizing ownership of real-world assets on the Cardano blockchain offers an innovative and transformative solution to address the challenges faced by investors and asset owners. Through increased accessibility, liquidity, and diversification opportunities, our project aims to make a significant impact on the financial landscape while enhancing Cardano's reputation as a leading blockchain ecosystem.

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

We intend to measure the platform's success based on its impact. We will focus on key performance indicators (KPI) such as the total value of real-world assets tokenized, the number of users onboarded, and the trading volume within the platform.

Additionally, we will assess the accessibility and diversification benefits provided to investors who were previously excluded from the real-world asset market. We will also measure the liquidity provided to asset owners and the efficiency & stability of the platform. Transparent reporting and regular updates will be provided to the Cardano community to showcase our progress and impact.

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

Sharing the outputs and results of our project is crucial to the success and wider adoption of the platform and the Cardano ecosystem. We plan to share updates and milestones achieved through regular reports on all our platforms, including website, social media channels, community forums & press releases in multiple channels. Additionally, we will collaborate with industry leaders, media outlets, and partners to showcase the benefits of fractionalized asset ownership using NFTs on the Cardano blockchain.

Within 60 days of platforms launch, the team will make the complete source code of the platform available through a public Github repository, granting accessibility and allowing users to freely utilize and modify it.

By transparently sharing our progress, insights and source code, we hope to inspire others to explore similar use cases for NFTs that includes the adoption of real-world use cases. 

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

Our team has a proven track record within the field of IT, fintech, compliance & building on the Cardano blockchain.

NMKR is the largest NFT infrastructure provider on the Cardano blockchain, being responsible for Minting over 1.6 million NFTs. NMKR has launched NFTs with celebrities such as Martin Lawrence and all three founding entities of the Cardano Blockchain: IOHK (IOG), Emurgo and the Cardano Foundation. By using NMKR brands, companies and artists can mint their NFTs quickly and easily. NMKR was previously named NFT-MAKER and rebranded in 2022.

IAMX AG, specializing in self-sovereign identity and compliance solutions, has collaborated with MME AG and KYC Spider AG to establish a compliant framework for digital identities and web3.

IAMX has earlier collaborated with NMKR on the development of CIP-0066, a verification method for NFTs.

MME AG is renowned for its legal framework contributions to various blockchain foundations, including Cardano and Ethereum.

KYC Spider AG is a technical partner of IAMX AG who automates your compliance and KYC processes as well as specific concerns according to individual specifications.

All our employees have undergone KYC, and only our c-level, who are equity holders in IAMX AG, Zug, have access to managing funds. Our CEO is a licensed financial advisor, and has experience managing funds including $ADA.

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

Enable fractional ownership: The objective is to provide a platform that allows fractional ownership of real-world assets through tokenization. The feasibility of this goal will be validated by successfully implementing smart contracts and minting tokens representing fractional ownership rights.

Enhance accessibility and liquidity: The goal is to increase accessibility to high-value assets and improve their liquidity by tokenizing them. The achievement of this goal will be measured by the number of tokenized assets available on the platform, tokenized & trading volume, and user engagement with the tokenized assets.

Foster investor confidence: The goal is to instill confidence in investors by providing a reliable and trustworthy platform for asset tokenization. The achievement of this goal will be measured by user feedback, user satisfaction surveys, and testimonials from investors who have successfully participated in fractional ownership through the platform.

Drive adoption of Cardano: The objective is to promote the adoption of Cardano's blockchain by showcasing its capabilities in asset tokenization. The achievement of this goal will be measured by the number of users onboarded, partnerships formed with asset owners & managers, as well as the overall growth of the Cardano ecosystem.

Adoption of protocol: We'll be creating documentation as the protocol is created. The source code will be released within a month from official launch, along with legal and compliance guidelines.

To validate the feasibility of these goals, the project will conduct comprehensive testing of the platform's functionalities (test net), engage with users and stakeholders for feedback, and track key performance indicators (KPIs) such as the number of tokenized assets, trading volume, user satisfaction, and growth in the user base.

Regular reporting and analysis of these metrics will provide insights into the project's success in achieving its objectives. Additionally, the project team will leverage industry best practices and technological advancements to implement the platform's features and ensure its scalability and usability.

[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.

Legal framework

• Define regulatory compliance requirements for asset fractionalization.
• Establish a workgroup with legal advisors to ensure legal validity.
• Develop terms and conditions for asset tokenization.
• Research & obtain necessary licenses and permissions.

10 weeks

Testnet

• Set up a test environment to simulate real-world asset fractionalization.
• Engage the NMKR community to participate in testing and provide feedback.
• Conduct testing of platform functionalities & user flow.
• Address and resolve any identified issues or bugs.

6 weeks

Proof of concept

• Secure ownership rights and authenticity verification for Nick Heidfeld's Formula One car.
• Create and mint NFTs representing fractions of the car's ownership.
• Develop a user-friendly interface for asset owners to tokenize their digital and physical assets. 
• Implement secure storage solutions for asset documentation and proof of ownership.
• Enable trading and transferability of fractionalized NFTs within the platform.

8 weeks

Public Platform launch

• Finalize platform development, incorporating feedback from the testing phase.
• Develop an intuitive and user-friendly interface for asset browsing, trading, and management.
• Proof of storage & insurance.
• Public launch.

8 weeks

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

Legal

Deliverables

• Compliant solution for fractionalizing and tokenizing real-world assets.
• Terms and conditions for asset tokenization.
• Regulatory compliance guidelines. 

Outputs

• Clear guidelines and regulations for the platform's operation.
• Legal documentation ensuring the legitimacy of asset fractionalization.

Intended outcomes

• Establish a legally compliant platform for asset tokenization.
• Build trust and confidence among investors and asset owners.

Measurement

• Completion of deliveries and outputs.

Test net

Deliverables

• Functioning test environment for simulating asset tokenization & trading
• Feedback and suggestions from the Cardano community. 

Outputs

• Identified and resolved platform issues and bugs.
• Improved platform functionalities based on community feedback. 

Intended outcomes

• Ensure a smooth and reliable user experience in the live platform.
• Enhance platform features and address any usability concerns. 

Measurement

• Active participation and feedback from the Cardano community.
• Successful resolution of identified issues and bugs.

Proof of concept

Deliverables

• Minted NFTs representing fractions of Nick Heidfeld's Formula One car.
• User interface for asset browsing and fractionalized NFT purchasing. 

Outputs

• Tokenized asset representing ownership fractions of the Formula One car.
• User-friendly interface for investors to view and acquire fractionalized NFTs. 

Intended outcomes

• Demonstrate the viability and functionality of asset fractionalization using NFTs.
• Generate interest and attract potential investors to the platform & the Cardano ecosystem.

Measurement

• Successful minting and listing of NFTs representing fractional ownership.
• User engagement and adoption of the platform for asset acquisition.

Public platform launch 

Deliverables

• Fully functional platform for asset fractionalization and trading.
• User interface for seamless asset browsing, trading, and management. 

Outputs

• Live platform accessible to the public for asset fractionalization.

Intended outcomes

• Enable individuals to easily access and invest in fractionalized real-world assets.
• Facilitate secure and transparent trading of tokenized assets. 

Measurement

• Successful public launch of the platform.
• User registrations and total valued tokenized on the platform.

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

Legal framework

·         Define regulatory compliance requirements for asset fractionalization.

·         Research & obtain necessary licenses and permissions

·         Establish a workgroup with legal advisors to ensure legal validity.

·         Develop terms and conditions for asset tokenization.

·         Develop terms and conditions for asset trading.

·         Develop legal guidelines.

$40600

Developments 

 

·         Architecture & initial user flow

·         Front-end development

·         UI/UX with iterations after user feedback and legal framework

·         DIDs for identification and verification

·         Test net

·         Proof of Concept

·         Public launch with Formula One Car and marketing activities

$36400

Conservative calculations with $ADA at 0.28.

Excess funding would go to marketing and the public launch of the platform.

Please note that these are estimated costs and the actual costs may vary based on the complexity of the development work, the feedback received, and the $ADA value. We are committed to using the funds effectively and transparently, and we will provide regular updates on our spending to the Cardano community. Within these frames we’re certain to deliver within the stated timeframes. 

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

The costs of the project are designed to represent value for money for the Cardano ecosystem by ensuring the development of a robust and feature-rich platform for fractionalizing ownership and tokenizing assets.

Through our partnerships, we're able to build together to keep the costs down. The costs are below the typical freelance rates and industry standards for IT development, legal advisory services, and other activities.

Quality and Scalability: The project prioritizes delivering a high-quality platform that can handle real-world asset tokenization efficiently and securely. This requires testing, security measurements, and the development of user-friendly interfaces.

Long-term Benefits: The project's costs reflect the long-term benefits it brings to the Cardano ecosystem. By enabling fractionalized ownership and asset tokenization, it promotes liquidity, accessibility, and increased investment opportunities. These benefits contribute to the growth and sustainability of the ecosystem.

Transparency and Trust: The project team is committed to transparency in cost allocation and financial management. Funds will be utilized responsibly, with a clear focus on delivering the proposed milestones and achieving the desired outcomes. Regular reporting and updates will be provided to maintain trust and accountability.

Value Proposition: The value for money lies in the transformative potential of the project and its outputs. By introducing fractionalized ownership and asset tokenization on Cardano, the platform opens up new markets, attracts diverse investors, and expands the use cases of the Cardano blockchain. The long-term value generated by increased adoption, user engagement, and economic activity far outweighs the initial costs.

The project's costs are more than justified by being below industry standards, the long-term benefits they bring to the ecosystem, and the value proposition of enabling fractionalized ownership and asset tokenization on Cardano. The team's commitment to transparency and accountability further ensures that the funds are utilized effectively and represent value for money for the Cardano ecosystem.

The protocol will be fully open sourced and will be a solid foundation for new projects.

[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