Auctions NFT Smart Contract with revenue sharing mechanism for whole Cardano NFT space to use!

[GENERAL] Name and surname of main applicant

Michal Urbanek

[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

Jaromir Tesar - analytics, advisor, Cardano ambasador

Lukas Barta - advisor, Cardano ambasador

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

4

[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)

Developing a smart contract that fairly rewards all parties involved in the Auction process thanks to advanced UTxO management. Our solution will reduce the current market entry barriers.

[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

Fully open-sourced under the Apache license.

[SOLUTION] Please describe your proposed solution

We recognized a significant challenge in the NFT space on the most decentralized blockchain. Despite its decentralized nature, the majority of NFT transactions are concentrated on just one private and profiting platform. In response, we set ourselves on a mission to level the playing field and foster more competition by building a solution that has the potential to empower other and/or specialized marketplaces and contributors in the ecosystem.

Our proposed smart contract incorporates multiple on-chain affiliate levels and dynamically splits service fees based on various factors. These factors include the marketplace where the NFT is Auctioned, the marketplace where the final bid occurred, and the contributors involved in the NFT sale (link affiliate). Unlike traditional smart contracts, where service fees are exclusively received by the contract owner, our approach is different and serves not only one business but the whole community.

We are going to apply the same philosophy as on instant buy/sell/offer SC, funded in round 11, to accomplish this goal with Auction SC.

Check out in greater detail at: https://jamonbread-io.gitbook.io/jamonbread/marketplace/smart-contract/incentive-structure-and-rewards

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

New businesses can build their products and integrate the Cardano blockchain more easily and without the high initial costs, expertise, and traffic/liquidity hoarding before such projects can become competitive. 

Our ultimate goal is to establish this smart contract solution as the industry standard. By adopting our smart contract, marketplaces can rather focus on new features or become a niche marketplaces fostering healthy competition beyond the realm of smart contracts. 

[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 are fully transparent with our business entity based in Prague, Czech Republic and we are building with guidance and cooperation with strong entities in Cardano. We have already built an instant buy/sell/offer SC under the funding from the previous round and we believe we have the capability to build another SC with the same logic.

The feasibility of the project has been discussed with auditing firms and we are certain the Auction's SC would be a suitable tool how to establish pricing in newly entering industries such as RWA and Gaming.

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

Designing

• Description: Design the solution for the proposed Smart Contract with the auditing firm.
• Output: Specific document summarizing the design of Auction Smart Contract solution with a revenue sharing mechanism
• Acceptance criteria: Detailed description of main functionality and necessary requirements for the programming team who is going to program the SC in Aiken.

Development

• Description: Develop an Auction Smart Contract based on the design structure and requirements.
• Output: Private codebase repo that is ready for a security audit. Screenshot from GitHub with evident number of lines of code and a sample of the part of a code.
• Acceptance criteria: Script that fulfills the design specs.

Audit report

• Description: Run security audit in the length of 5-10 MD.
• Output: Completed audit summarizing Auction SC vulnerabilities and recommendations to fix its security issues.
• Acceptance criteria: All issues and vulnerabilities have a proposal of how to fix them.

Deployment

• Description: Deploy the Smart Contract script on Testnet to ensure its functionality and security.
• Output: Deployed Smart Contract on Testnet site with public access.
• Acceptance criteria: Finalized product that is being tested on public Testnet.

Completion report

• Description: Final project completion report and video demonstrating the use case in a real environment on Cardano Mainnet.
• Output: Github repo with Auction SC that is ready for any entity or individual to use for their business purposes under the Apache license. Documentation for onboarding businesses.
• Acceptance criteria: Public GitHub repo with open-sourced Smart Contract.

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

• Martin Miksanik - Aiken coding and UTXO Management
• Josef Taborsky - Project Management
• Michal Urbanek - Product Management
• Vacuum Labs / Sundae Labs -Smart Contract Designer, Reviewer, Auditor

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

Design: 30.000 ADA

• Aiken developer
• Project coordination
• Auditing firm’s fee - design

Development: 50.000 ADA

• Aiken developer
• Project coordination
• Code review fee

Audit: 50.000 ADA

• Complete security audit
• Project coordination

Deployment: 30.000 ADA

• Deploy and run in a simulated environment
• Prepare technical manuals for onboarding businesses.

Completion report: 20.000 ADA

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

Since we are proposing this Smart Contract to be an Industry standard model for Cardano NFTs Auctions, we decided to employ Senior developers and professional partners for Internal Audit, Code design and Review. Despite a professional team, rates still represent the industry average for their respective seniority level. Smart Contract can easily become a single point of failure and high risks of funds locked or lost are present if the code is not built with a high precision.