Old Keg DAO a community-led investment fund backed by rare spirits as Real-World Assets.

[GENERAL] Name and surname of main applicant

Alessandro Venè

[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)

5

[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)

Old Keg DAO buys rare spirits directly from producers, tokenises them and sells the NFTs on specialised marketplaces at a premium.

[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.”

Old Keg DAO is a spin-off of CellarDAO a notorious DAO specialised in investing in prestigious wines.

Part of the CellarDAO Society ecosystem is VINTAG3, the NFT marketplace and tokenisation platform where Old Keg DAO will primarily exit its investments at an average of 2x - 3x from the purchase price.

[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

Smart contracts will be fully open source. GPL2 license.

[SOLUTION] Please describe your proposed solution.

Addressing the Problem

The traditional investment landscape is often inaccessible to the average individual, with high entry barriers and limited opportunities for diversification. This is particularly evident in the realm of rare spirits investments, where high upfront costs and a lack of transparency have historically excluded a significant portion of potential investors.

The Opportunity

The rare spirits market presents a compelling investment opportunity due to its consistent growth and attractive returns. Historically, rare spirits have outperformed traditional asset classes, offering an average annualized percentage yield (APY) of 18%, with some instances exceeding 30%. This resilience is attributed to factors such as limited supply, increasing demand, and a growing collector's market.

Ref Forbes, Schroeder, Liv EX and UK Crueworld

Factors Driving Market Growth

Several factors contribute to the growth of the rare spirits market:

• Limited Supply: The production of rare spirits is often limited due to ageing time, production techniques, and limited availability of raw materials. This scarcity enhances the value of these spirits.
• Increasing Demand: The demand for rare spirits is driven by rising affluence, growing interest in luxury goods, and a resurgence in cocktail culture.
• Collector's Market: Rare spirits have become increasingly popular among collectors, who view them as both an investment and a passion. This demand further drives up prices.

Attractive Returns

Rare spirits have consistently delivered attractive returns to investors. A study by Knight Frank's Luxury Investment Index (LIx) found that rare spirits have outperformed traditional asset classes such as stocks, bonds, and gold over the past decade. In 2022, the LIx Rare Whisky Index returned 23.5%, compared to 10.6% for the S&P 500.

Our Solution

Old Keg DAO is changing a century-old industry by democratizing access to rare spirits investments by tokenising the investment via unique NFTs and fractional NFTs and selling them on 24x7 marketplaces. By leveraging Cardano's blockchain technology, we empower individuals to participate in this lucrative asset class, regardless of their financial background.

Key Features

• Decentralized Governance: The $OLD governance token grants holders voting rights on investment proposals, ensuring community involvement in decision-making.
• Transparency and Security: Cardano's blockchain technology underpins the platform, fostering transparency, security, and efficient transaction execution.

Benefits

• Democratized Access: Old Keg DAO opens doors to rare spirits investments for a broader audience, fostering financial inclusion and empowering individuals.
• Enhanced Liquidity on 24x7 NFT marketplaces: Fractional ownership increases the liquidity of the rare spirits market, benefiting both investors and sellers.
• Community-Driven Governance: $OLD token holders actively participate in governance, ensuring alignment with community interests.
• Steady Returns: Old Keg DAO aims to deliver consistent returns to investors, leveraging the expertise of our investment committee.

Uniqueness and Impact

Old Keg DAO stands out as a pioneering initiative in the rare spirits investment space, combining fractional ownership, decentralized governance, and Cardano's blockchain technology to create a truly democratized and community-driven platform. By unlocking this asset class for a broader audience, we empower individuals and contribute to the growth and diversification of the investment landscape.

Significance for Cardano

Old Keg DAO demonstrates the transformative potential of Cardano's blockchain technology, extending its reach beyond traditional financial applications and empowering individuals to participate in a previously exclusive asset class. This aligns with Cardano's mission of fostering financial inclusion and innovation.

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

Old Keg DAO intends to make a significant positive impact on the wider Cardano community by:

1. Democratizing Access to Rare Spirits Investments:

Currently, the rare spirits market is primarily accessible to high-net-worth individuals due to high upfront costs and a lack of transparency. Old Keg DAO breaks down these barriers by offering fractional ownership of rare spirits, enabling individuals with varying financial means to participate in this lucrative asset class.

Impact Measurement:

• Increased participation in rare spirits investments among Cardano community members
• Growth in the number of fractional ownership shares sold
• Diversification of investment portfolios within the Cardano ecosystem

2. Fostering Community Engagement and Governance:

Old Keg DAO empowers Cardano community members to actively participate in decision-making processes through its governance token, $OLD. Token holders can vote on investment proposals, ensuring alignment between community interests and the fund's direction.

Impact Measurement:

• Active participation of Cardano community members in governance voting
• Alignment of investment decisions with community preferences
• Enhanced sense of ownership and engagement among community members

3. Expanding the Cardano Ecosystem and Use Cases:

Old Keg DAO demonstrates the versatility and applicability of Cardano's blockchain technology beyond traditional financial applications. It showcases the potential of blockchain to democratize access to alternative asset classes and empower communities through decentralized governance.

Impact Measurement:

• Increased adoption of Cardano's blockchain technology for non-traditional financial applications
• Recognition of Cardano's potential to foster financial inclusion and community-driven decision-making
• Positive perception of Cardano's ecosystem's innovation and diversity

To share the outputs and opportunities generated by Old Keg DAO, we will:

1. Publish regular updates and reports on the project's progress, including investment decisions, governance outcomes, and financial performance.
2. Organize educational workshops and webinars to introduce the concept of rare spirits investments and the benefits of fractional ownership.
3. Engage with the Cardano community through social media platforms, forums, and community events to foster discussions, address concerns, and share insights.
4. Collaborate with other Cardano projects and initiatives to explore synergies, promote cross-community engagement, and expand the reach of our impact.
5. Contribute to the development of Cardano's ecosystem by sharing our learnings, experiences, and best practices with other project teams and developers.

[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?

Experienced Leadership:

We are the team behind CellarDAO, a community-powered investment vehicle which was successfully launched in 2023.

Our leadership team together with the Investment Committee has more than 70+ years of combined C-level and entrepreneurial experience in Web3, and Web2 as well as verticals such as F&B and Wine.

This expertise ensures we have the necessary skills and knowledge to navigate the complexities of the rare spirits market and effectively implement our decentralized governance model.

Transparent Processes:

We believe in transparency as the cornerstone of trust. All investment decisions, governance proposals, and financial transactions will be publicly viewable on the Cardano blockchain, and accessible to all community members. This level of transparency will foster trust and accountability, allowing community members to track our progress and hold us accountable for our actions.

Community Involvement:

Old Keg DAO is a community-driven project, and we believe in empowering our community members to actively participate in decision-making processes. Our governance token, $OLD, grants token holders voting rights on investment proposals, ensuring that community preferences are reflected in our investment decisions.

Validating Our Approach:

To validate the feasibility of our approach, we will conduct a thorough market analysis to assess the demand for fractional ownership of rare spirits within the Cardano community. We will also engage with potential investors and industry experts to gather feedback and refine our investment strategy.

In addition, we will conduct a pilot phase with a limited selection of rare spirits to test our fractional ownership model, governance processes, and operational efficiency. This pilot phase will provide valuable insights and allow us to make necessary adjustments before rolling out the platform on a wider scale.

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

Market Analysis and Community Engagement

Conduct a comprehensive market analysis to assess the demand for fractional ownership of rare spirits within the Cardano community. Engage with potential investors and industry experts to gather feedback and refine the investment strategy.

Milestone Outputs:

1. Detailed market analysis report outlining the target audience, market size, competitive landscape, and potential demand for fractional ownership of rare spirits.
2. Summary of key findings and recommendations from community engagement activities, including workshops, webinars, and online forums.
3. Revised investment strategy incorporating insights from market analysis and community engagement.

Acceptance Criteria:

1. The market analysis report provides a comprehensive overview of the rare spirits market, including key trends, drivers, and opportunities.
2. The engagement activities successfully gather feedback from a diverse range of community members, including potential investors and industry experts.
3. The revised investment strategy demonstrates a clear understanding of the target market, competitive landscape, and potential risks and opportunities.

Pilot Phase and Governance Framework

Develop a pilot platform for fractional ownership of rare spirits. Conduct a pilot phase with a limited selection of rare spirits to test the platform's functionality, governance processes, and operational efficiency.

Milestone Outputs:

1. A functional pilot platform for fractional ownership of rare spirits, including user interface, transaction processing, and governance module.
2. Pilot phase report summarizing the results of the testing, including key findings, identified challenges, and proposed improvements.
3. Finalized governance framework outlining the roles and responsibilities of governance participants, voting procedures, and dispute resolution mechanisms.

Acceptance Criteria:

1. The pilot platform demonstrates the core functionalities of fractional ownership, including investment, trading, and governance.
2. The pilot phase report provides valuable insights into the platform's usability, efficiency, and potential areas for improvement.
3. The finalized governance framework establishes a clear and transparent governance structure that aligns with the interests of the community.

Website Launch and Community Outreach

Objective: 

Successfully launch the project website, providing a central hub for information, community engagement, and access to the platform. Implement a comprehensive community outreach and engagement plan to expand the project's reach, gather feedback, and foster a strong sense of community.

Activities:

1. Initiate website launch, ensuring seamless user experience and accessibility.
2. Implement a comprehensive community outreach plan, including social media engagement, online forums, and virtual events.
3. Gather and analyze community feedback to refine the platform and enhance user experience.

Acceptance Criteria:

1. The launched website effectively communicates the project's value proposition, serves as a valuable resource for potential investors and community members, and demonstrates a high level of user experience and accessibility.
2. The community outreach and engagement plan results in a measurable increase in community engagement, as evidenced by increased social media following, active participation in online discussions, and attendance at virtual events.

Objective: 

Successfully integrate Web3 components, implement DAO voting and governance tools, enhance UI/UX, achieve frontend and backend stability, conduct user testing, and prepare a comprehensive project completion report summarizing the project's progress, achievements, and lessons learned.

Activities:

1. Integrate Web3 components, including blockchain wallets, smart contracts, and decentralized governance processes.
2. Develop DAO voting and governance tools, incorporating Votaire and ADAO tooling to facilitate community-driven decision-making.
3. Consolidate UI/UX, emphasizing the development of an investment dashboard for user-friendly portfolio tracking and performance analysis.
4. Implement frontend and backend stable releases, ensuring optimal platform performance and scalability.
5. Conduct rigorous user testing to identify and address any usability issues before public release.
6. Prepare a detailed project completion report, outlining the project's objectives, implementation approach, key achievements, challenges faced, and lessons learned.

Acceptance Criteria:

1. Deployed DAO governance on testnet, enabling investors to connect their wallets, check their investment amounts and performance, review ongoing and past proposals, and participate in voting.
2. Functional and secure Web3 integration, facilitating seamless interaction with the blockchain ecosystem.
3. User-friendly and intuitive UI/UX, including a comprehensive investment dashboard for informed decision-making.
4. Stable and scalable frontend and backend releases, ensuring a smooth and reliable user experience.
5. Successful user testing, resulting in a refined platform that meets the needs and expectations of users.
6. A comprehensive project completion report that effectively summarizes the project's journey, highlighting key milestones, successes, and learnings.

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

1. Ibay Amour - lead developer, full stack dev
2. Alessandro Vené - lead market and financial research, investment committee
3. Marc Mallolas - marketing lead, investment committee
4. Glenn Huybrecht - DAO lead, investment committee
5. UIX designer (TBD)
6. Pete Ho - Heskell/Plutus dev

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

Budget breakdown by Milestone:

1) Market Analysis, Community Engagement, and Investment Strategy Refinement

• Legal Services: 3,500 ADA
• Accounting Services: 1,750 ADA
• Market Analysis and Community Engagement: 5,250 ADA 
• Subtotal: 10,500 ADA

2) Pilot Phase Development, Tokenomics Engineering, and Roadmap Creation

• Software Licenses: 3,500 ADA
• Pilot Phase Platform Development: 7,000 ADA
• Website Design: 5,000 ADA
• Tokenomics Engineering: 4,000 ADA
• Project Management: 3,500 ADA 
• Subtotal: 23,000 ADA

3) Website Launch, Community Outreach

• Publicity, Marketing, and Community Engagement: 1,225 ADA
• Documentation: 2,450 ADA
• Roadmap Development: 1,500 ADA 
• Subtotal: 5,175 ADA

4) Final Milestone

• DAO voting and governance tools development: 2,000 ADA
• Web3 components integration: 3,250 ADA
• UI/UX enhancement: 1,000 ADA
• Frontend and backend stability: 3,000 ADA
• User testing: 1,000 ADA
• Project completion report: 0 ADA 
• Subtotal: 10,250 ADA

Total budget: 87,300 ADA

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

Enhancing Cardano Ecosystem Adoption and Utilization:

The project's comprehensive approach to blockchain development and deployment addresses critical aspects of Cardano ecosystem adoption and utilization:

1. Community Engagement and Investment Strategy Refinement: Fostering a strong and engaged community through market analysis, community outreach, and investment strategy refinement drives adoption and utilization.
2. Accelerated Platform Development: Delivering a robust and scalable platform through pilot phase development, tokenomics engineering, and roadmap creation meets the growing demand for innovative blockchain solutions.
3. User-Centric Platform Design: Prioritizing user experience through website launch and community outreach activities ensures a seamless onboarding process for new users.
4. Web3 Component Integration: Empowering community members to actively participate in decision-making through the integration of Web3 components, including DAO voting and governance tools, promotes decentralized governance.
5. User-Friendly Tools for Informed Investment Decisions: The development of an investment dashboard provides users with intuitive tools to manage their portfolios and make informed investment decisions.

These efforts directly contribute to the Cardano ecosystem's growth and utilization by attracting new users, enhancing developer interest, and promoting Cardano's versatility and utility across various industries.

Justification of Project Costs:

The project's costs are carefully considered and reflect the expertise required to deliver the proposed deliverables. The costs for services such as legal, accounting, software licensing, and website design are in line with industry standards.

The costs for pilot phase development, tokenomics engineering, and project management are justified by the complexity of these tasks and the need for experienced professionals to ensure the project's success.

Additionally, the costs for user testing are essential to ensure a high-quality user experience and identify any potential usability issues before the platform launch.

Furthermore, the project's costs are proportionate to the average wage in Malta, where part of the core project team is based. The salaries for project personnel are based on their experience and expertise, and they are comparable to salaries in other blockchain development hubs.

[IMPORTANT NOTE] The Applicant agrees to Fund 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