Revolutionize DAOs: Integrate KYC, KYB, KYT, AML into Clarity. Unlock Next-Level Decentralized Management on Cardano.

[GENERAL] Name and surname of main applicant

Tim Heidfeld

[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

Logan Panchot and Justin Schreiner from Clarity https://www.clarity.vote/

[GENERAL] Requested funds in ada

325000

[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)

Implement KYC, ZKP and DIDs in DAO smart contracts to enhance regulatory compliance, ensure participant accountability, reduce fraud, and boost overall trust and security within the ecosystem.

[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.”

The project has dependencies regarding the source of information for the KYC and uses the services of IAMX.

IAMX operates a platform for creating user-owned, controlled, and verifiable compliant digital identities for individuals, companies, and assets. This digital identity framework facilitates compliant mutual authentication, business process automation, and biometric authorization. IAMX compliance service modules per partner:

1. AML (Anti-Money Laundering): Provided by Intrum AG, which employs 10,000 staff across 160 offices globally, helping to mitigate money laundering risk
2. Identity Verification: Handled by IDnow via Intrum, conducting over 30 million identity verifications annually across 195 countries
3. KYT (Know Your Transaction) Wallet and Transaction Monitoring: Merkle Science enhances crypto compliance, anti-money laundering, and fraud prevention through innovative technology, tools, and services that ensure safety and regulatory compliance in the cryptocurrency sphere

[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

Our dedication to fully open-sourcing our project involves navigating substantial legal challenges. While we strive to maximize the open-source elements of our project, the intricate legal landscape surrounding permissions, licenses, and intellectual property rights prevents us from guaranteeing complete open-sourcing. Legal constraints may restrict our ability to open-source some components; however, we are committed to upholding and implementing open-source principles as widely as possible within these constraints.

[SOLUTION] Please describe your proposed solution

Problem Perception

Our solution addresses significant challenges in decentralized governance, particularly the risks associated with anonymous participation in decision-making processes. Without proper Know Your Customer (KYC), Know Your Business (KYB), Know Your Transaction (KYT), and Anti-Money Laundering (AML) protocols, decentralized platforms like Clarity Vote on Cardano can become vulnerable to fraud, misuse, and regulatory non-compliance. These risks can undermine trust and legitimacy, hindering broader adoption and acceptance.

Approach

We have chosen to integrate KYC, KYB, KYT, and AML into Clarity Vote to establish a secure, transparent, and compliant framework for decentralized management. This approach will:

• Enhance security by verifying the identity of participants, thereby reducing the potential for fraudulent activities.
• Increase transparency and accountability within the ecosystem, reassuring both users and regulators of the integrity of the decision-making processes.
• Ensure compliance with global financial regulations, making the platform more robust against legal and reputational risks.

Engagement Strategy

Our project will engage multiple stakeholders within the Cardano ecosystem:

• End Users: Voters and participants using Clarity Vote for governance and decision-making.
• Regulatory Bodies: Ensuring compliance with relevant laws and regulations to facilitate acceptance and reduce barriers to adoption.
• Developers and Entrepreneurs: Providing them with a reliable and compliant platform to build and manage decentralized organizations.
• Investors: Attracting those who require a level of assurance about the legality and ethical management of their investments.

Demonstrating and Proving Impact

To demonstrate and prove the impact of our integration, we will employ the following methods:

• Compliance Reports: Regular audits and compliance reports that show adherence to KYC, KYB, KYT, and AML regulations, detailing the effectiveness of our protocols.
• User Feedback and Case Studies: Gather and publish feedback from users on the security and usability of the system, including detailed case studies of how these integrations have improved governance and compliance.
• Transaction Analysis: Use data analytics to show transparency in transactions and the effectiveness of KYT and AML measures in preventing suspicious activities.
• Regulatory Approval and Recognition: Obtaining endorsements or certifications from regulatory bodies, which serve as proof of our project's compliance and impact.

By addressing these key areas, our solution not only fortifies Clarity Vote on Cardano against current and future challenges but also sets a standard for responsible and sustainable management in decentralized environments.

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

A. Positive Impact on the Cardano Community

Value to the Community:

Our project, "Revolutionize DAOs: Integrate KYC, KYB, KYT, AML into Clarity Vote," aims to significantly enhance the Cardano ecosystem by ensuring that DAO operations are more secure, transparent, and compliant with global regulations. By integrating these systems into Clarity Vote, we are poised to:

Boost Security and Trust: Enhancing the trustworthiness of DAOs on Cardano by verifying the identity of participants, thus preventing fraudulent activities and ensuring a safer environment for transactions and governance.

  

Facilitate Regulatory Compliance: Helping DAOs to meet stringent legal requirements, which can attract institutional investors and users who prioritize legal compliance, thereby expanding the user base and fostering a more inclusive ecosystem.

Enhance Transparency: Increasing the accountability of transactions and governance actions within DAOs, which can lead to higher participation rates and more active engagement within the community.

Promote Adoption: By demonstrating a reliable and compliant framework, we can encourage broader adoption of Cardano’s blockchain technology for various applications beyond DAOs, including financial services, supply chain management, and more.

B. Measuring Impact

Quantitative Measures:

• User Growth: Track the increase in the number of active users and participants in DAOs using Clarity Vote pre and post-implementation.
• Transaction Volume: Measure the volume and value of transactions processed through Clarity Vote to gauge increased usage and trust.
• Adoption Rate: Monitor the adoption rate of the enhanced Clarity Vote among existing and new DAOs on the Cardano network.

Qualitative Measures:

• User Satisfaction: Conduct surveys and feedback sessions with DAO participants to assess their satisfaction with the security, usability, and compliance aspects of the system.
• Regulatory Feedback: Obtain feedback from regulatory bodies and compliance experts on the effectiveness of the KYC, KYB, KYT, and AML integrations.

C. Sharing Outputs and Opportunities

Community Engagement:

• Documentation and Reports: Publish detailed reports and whitepapers on our findings, the technological enhancements made, and the benefits realized, which will be available through Cardano community forums, our website, and academic channels.
• Workshops and Webinars: Host educational sessions and workshops to demonstrate the functionalities of the enhanced Clarity Vote, explaining how other developers can leverage these enhancements for their own projects.
• Partnerships: Collaborate with other projects and platforms within the Cardano ecosystem to share knowledge and integrate our solutions where beneficial.

Open Source Contributions:

• Software and Tools: Make parts of the developed software and tools open source, allowing other developers to use, modify, and improve them, fostering innovation and continuous improvement within the community.

By implementing these strategies, we aim to ensure that the benefits of our project extend beyond immediate users to impact the broader Cardano community, contributing to its growth and the advancement of decentralized technologies.

[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?

Our team at Clarity Vote, combined with the strategic partnerships and technology platforms of IAMX, is uniquely equipped to deliver the proposed project with high levels of trust and accountability. Here’s how we demonstrate our capability and validate the feasibility of our approach:

Capability and Track Record

Experienced Leadership: The project is led by Logan and Justin, who have a proven track record in managing and scaling tech-driven projects. Their leadership in developing Clarity Vote showcases their capability to oversee complex, decentralized governance structures effectively.

IAMX’s Proven Technology: IAMX operates an advanced digital identity platform that supports user-owned, controlled, and verifiable compliant digital identities. This technology is crucial for ensuring secure and compliant transactions and interactions within the DAO framework.

Strategic Partnerships: 

• AML Compliance: Our partnership with Intrum AG, which employs a large global workforce, is instrumental in mitigating money laundering risks, ensuring that our governance structure adheres to necessary AML guidelines.
• Identity Verification: Collaborations with IDnow via Intrum, handling millions of identity verifications annually, ensure that our user authentication processes are robust and secure.
• KYT and Transaction Monitoring: Merkle Science provides state-of-the-art compliance and monitoring tools that enhance our capabilities in managing and securing crypto transactions.

Validation of Approach

Pilot Testing: Before full-scale implementation, we will conduct pilot tests to validate the integration of our digital identity and compliance services within the Clarity Vote platform. This will help identify any potential issues and ensure that all systems function as intended.

Continuous Monitoring and Feedback: We will implement continuous monitoring mechanisms to track the effectiveness of the integrated systems. Feedback will be actively solicited from users to refine and optimize the platform.

Regulatory Compliance Checks: Regular compliance checks will be conducted in collaboration with our partners to ensure that the platform remains compliant with evolving regulations.

Trust and Accountability in Fund Management

Transparent Budgeting and Reporting: We commit to maintaining transparency in our financial management processes.

By leveraging our existing capabilities and comprehensive validation strategies, we are confident in our ability to deliver the project successfully. This will not only benefit the stakeholders involved but will also contribute significantly to the Cardano ecosystem, enhancing the security, functionality, and compliance of decentralized applications.

Dennis Mittmann

CTO IAMX https://iamx.id

https://www.linkedin.com/in/dennis-mittmann/

Tim Brückmann

CMO IAMX https://iamx.id

https://www.linkedin.com/in/tim-b-7864a284/

Tim Heidfeld

CEO IAMX https://iamx.id

https://www.linkedin.com/in/tim-heidfeld/

Logan Panchot

Clarity.vote

https://www.linkedin.com/in/logan-panchot/

Justin Schreiner

Clarity.vote

https://www.linkedin.com/in/justinschreiner/

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

Milestone 1: Onboarding

Output: Develop a fully functional user interface for seamless onboarding for Clarity Vote.

Acceptance Criteria: Users can successfully perform a KYC.

Evidence of Completion: Video documentation showcasing the process and a technical report detailing the implementation and integration.

Milestone 2: DID-methods

Output: Implementation of DID creation on Cardano using DID methods did:prism and did:iamx, and issuance of a Verifiable Credential.

Acceptance Criteria: Successful creation of a DID and a Verifiable Credential by users, following the successful onboarding in Milestone 1.

Evidence of Milestone Completion: Video documentation showing the process of DID creation using did:prism and did:iamx, and the issuance of Verifiable Credentials.

Milestone 3: Connection of DID to Smart Contract

Output: Connect DID to a smart contract to enable decentralized governance and voting within Clarity Vote.

Acceptance Criteria: Successful connection of DID to the smart contract, enabling users to use their DIDs for voting and other governance actions.

Evidence of Milestone Completion: Video documentation and a technical report detailing the connection of the DID to a smart contract.

Milestone 4: Integration of Voting Mechanism

Output: Fully integrate the voting mechanism within Clarity Vote, using the established DIDs for secure and verified voting.

Acceptance Criteria: Users can utilize their DIDs to vote within the Clarity Vote platform, with all votes being verifiable and tied to authenticated digital identities.

Evidence of Milestone Completion: Video documentation of the voting process and a comprehensive technical report detailing the integration and functionality.

Milestone 5: Public Beta Testing

Output: Launch a public beta test of the integrated Clarity Vote platform to gather user feedback and ensure system robustness.

Acceptance Criteria: Successful operation of the Clarity Vote platform during the beta phase, with feedback collected from users to identify any issues or areas for improvement.

Evidence of Milestone Completion: Compilation of user feedback, video documentation of the testing process, and a beta test report.

Final Milestone: Official Launch

Output: Official launch of the Clarity Vote platform with full functionality, including KYC, DID integration, and a secure voting mechanism.

Acceptance Criteria: Clarity Vote is fully operational for the general public with all functionalities working as intended, and compliance with all regulatory requirements confirmed.

Evidence of Milestone Completion: Press release, launch event documentation, and a final report summarizing the project development, implementation, and compliance status.

These milestones are designed to ensure a systematic and transparent approach to project development, from user onboarding to the final launch. By clearly outlining the acceptance criteria and providing robust evidence of completion, we aim to demonstrate our commitment to delivering a trustworthy and functional system that enhances the capabilities of the Cardano ecosystem.

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

A. Companies

Clarity Vote [DAO, Governance; https://www.clarity.vote/https://iamx.id/ ]

Create, join, and manage decentralized organizations. Leverage no-code DAO tooling built for Cardano. The project is led by Logan and Justin, who have a proven track record in managing and scaling tech-driven projects. Their leadership in developing Clarity Vote showcases their capability to oversee complex, decentralized governance structures effectively.

IAMX [Digital Identity]

IAMX operates a cutting-edge platform for creating user-owned, controlled, and verifiable compliant digital identities for individuals, companies, and assets. This digital identity framework facilitates compliant mutual authentication, business process automation, and biometric authorization.

IAMX compliance service modules per partner:

AML (Anti-Money Laundering): Provided by Intrum AG, which employs 10,000 staff across 160 offices globally, helping to mitigate money laundering risk

Identity Verification: Handled by IDnow via Intrum, conducting over 30 million identity verifications annually across 195 countrie

KYT (Know Your Transaction) Wallet and Transaction Monitoring: Merkle Science enhances crypto compliance, anti-money laundering, and fraud prevention through innovative technology, tools, and services that ensure safety and regulatory compliance in the cryptocurrency sphere.

B. Persons

Dennis Mittmann

CTO IAMX https://iamx.id

https://www.linkedin.com/in/dennis-mittmann/

Tim Brückmann

CMO IAMX https://iamx.id

https://www.linkedin.com/in/tim-b-7864a284/

Tim Heidfeld

CEO IAMX https://iamx.id

https://www.linkedin.com/in/tim-heidfeld/

Logan Panchot

Clarity https://www.clarity.vote/

https://www.linkedin.com/in/logan-panchot/

Justin Schreiner

Clarity https://www.clarity.vote/

https://www.linkedin.com/in/justinschreiner/

C. Roles

Logan and Justin of Clarity Vote hold the role of Product Owner. They are primarily responsible for setting the strategic direction of the project, overseeing all operational aspects, and ensuring that the project aligns with its goals.

Dennis Mittmann - Serving as the CTO at IAMX, Dennis contributes his deep technical expertise to the IT development aspect of the project regarding the DID-methods and verifiable credentials

Tim Brückmann - As the CMO at IAMX, Tim is tasked with the support of all marketing activities. He develops and executes marketing strategies to enhance the visibility of the wallet and drive user adoption, leveraging his extensive experience in digital marketing within the blockchain space.

Tim Heidfeld - The CEO at IAMX, Tim oversees legal and compliance matters for the project. He ensures that all operations comply with relevant regulations and legal standards, which is crucial for maintaining the project's integrity and trustworthiness.

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

IT Development

The IT development segment of our project involves critical components such integration of KYC, DID-methods and verifiable credentials. To achieve these objectives, we will engage 2 senior developers, project management, product owner, over a period of 4 months. The budget allocation for this essential phase is as follows:

Total Cost: 265,000 ADA

Design and Layout

This portion of the budget covers the design, layout, and output formats essential for the application's user interface and user experience components. Effective design is crucial for ensuring that the application is accessible, intuitive, and user-friendly.

Total Cost: 15,000 ADA

Legal Analysis and Agreements

Legal integrity is paramount in projects that handle KYC data to ensure compliance with data protection regulations. This budget allocation will cover all necessary legal analysis and the drafting of agreements.

Total Cost: 30,000 ADA

Publicity, Community Engagement, and Project Management

To ensure the project reaches a wide audience and engages effectively with the community, funds are allocated for publicity and community engagement activities. Additionally, this allocation covers the overall project management, documentation, and reporting to keep stakeholders informed and involved throughout the project lifecycle.

Total Cost: 15,000 ADA

Total Project Budget: 325,000 ADA

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

The total project budget of 325,000 ADA allocated for the development of Clarity Vote is a strategic investment that brings significant value to the Cardano ecosystem by enhancing the functionality, security, and compliance of decentralized governance applications. Here's how this cost represents value for money within the Cardano community:

Enhancing Cardano's Technological Framework

The investment in IT development, which totals 265,000 ADA, focuses on integrating advanced features such as KYC, DID methods, and verifiable credentials into the Clarity Vote platform. This not only boosts the security and functionality of decentralized applications on Cardano but also:

• Positions Cardano as a leading blockchain for secure and compliant decentralized applications, appealing to a broader range of developers and enterprise clients.
• Demonstrates Cardano's capability to support complex, real-world applications that require robust identity verification and governance structures.

User Experience and Accessibility

Allocating 15,000 ADA for the design and layout ensures that Clarity Vote is not only powerful but also accessible and user-friendly. This investment:

• Makes it easier for users of all technical levels to participate in decentralized governance, expanding the user base and increasing overall engagement on the Cardano platform.
• Supports broader adoption of Cardano’s applications by making them more approachable and intuitive, which is crucial for long-term growth.

Legal Compliance and Integrity

The 30,000 ADA dedicated to legal analysis and agreements ensures that Clarity Vote adheres to global data protection and privacy regulations. This compliance is essential for:

• Building trust among users and regulators, which is vital for the acceptance and success of blockchain solutions in regulated industries.
• Protecting the Cardano ecosystem from potential legal challenges that could arise from non-compliance.

Community Engagement and Project Management

Investing 15,000 ADA in publicity, community engagement, and project management ensures that the project is not developed in isolation but with regular input and feedback from the community. This approach:

• Helps align the project’s development with the needs and expectations of the Cardano community, ensuring that it delivers real value.
• Enhances visibility and fosters a sense of ownership among community members, which can drive further innovation and participation.

Milestone-Based Accountability

The project is structured around clear milestones with specific outputs and acceptance criteria, each backed by tangible evidence such as video documentation and technical reports. This milestone-based approach:

• Provides transparent benchmarks for progress and success, making it easier to track and manage the project effectively.
• Ensures that funds are released based on verifiable achievements, enhancing accountability and ensuring efficient use of resources.

Overall, the expenditure on this project is a calculated investment into making Cardano a preferred platform for secure, compliant, and user-friendly decentralized applications. By successfully implementing this project, we not only enhance the capabilities of the Cardano ecosystem but also ensure that it remains competitive and relevant in the rapidly evolving blockchain space.