Modular DePIN SDK: Unlocking New Revenue Streams for SPOs

[GENERAL] Name and surname of main applicant

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

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

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

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

We are developing a lightweight DePIN client for SPOs, allowing them to easily deploy new DePIN models on their existing infrastructure and generate additional revenue.

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

[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?

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

The project will be open source under MIT License. This will allow anyone to do whatever they wish with the original code, as long as the original copyright and license notice is included either in the distributed source code or software.

[METADATA] SDG rating

SDG rating:

SDG Goals

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

17 - Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

SDG Subgoals

17.19 - By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries

17.3 - Mobilize additional financial resources for developing countries from multiple sources

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

9.b - Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

Key Performance Indicator (KPI)

9.1.1 - Proportion of the rural population who live within 2 km of an all-season road

9.1.2 - Passenger and freight volumes, by mode of transport

9.3.1 - Proportion of small-scale industries in total industry value added

9.3.2 - Proportion of small-scale industries with a loan or line of credit

9.b.1 - Proportion of medium and high-tech industry value added in total value added

17.3.1 - Foreign direct investment, official development assistance and South-South cooperation as a proportion of gross national income

17.3.2 - Volume of remittances (in United States dollars) as a proportion of total GDP

17.19.1 - Dollar value of all resources made available to strengthen statistical capacity in developing countries

17.19.2 - Proportion of countries that (a) have conducted at least one population and housing census in the last 10 years; and (b) have achieved 100 per cent birth registration and 80 per cent death registration

[SOLUTION] Please describe your proposed solution

The DePIN (Decentralized Physical Infrastructure) Modular SDK is designed to facilitate the development of decentralized applications, such as those resembling the TOR network, utilizing the infrastructure provided by Cardano Stake Pool Operators (SPOs). This SDK aims to minimize computational overhead while maximizing security and decentralization.

Components of DePIN:

The components of DePIN

DePIN consist mainly of four components:

1. Physical Infrastructure - Cardano SPO Nodes

The physical infrastructure encompasses tangible elements such as servers, sensors, and connectivity hardware, essential for establishing the network's physical presence and functionalities. In our case it is Cardano node servers.

2. Offchain Compute Infrastructure

Offchain compute infrastructure refers to the middleware responsible for processing real-world data before its integration into the blockchain network. It plays a vital role in managing and interpreting data collected by the physical infrastructure.

3. Blockchain Architecture

Blockchain technology forms the cornerstone of decentralized infrastructures, offering a decentralized and secure ledger. It is instrumental in maintaining device registries and supporting the network's token economy.

4. Token Incentives

Tokens serve as both rewards to incentivize network participants and as the currency within the network's economy. This incentivization mechanism is pivotal for motivating contributors to actively engage in building and sustaining the network.

We will build a modular light DePIN client to do this. The SDK will support applications that require low computational power.

SDK Features:

• Base Tool for Light DePIN Applications: Enables development of lightweight DePIN applications requiring minimal computation, ideal for running alongside SPO servers.
• Creation of Token Incentives for SPOs: Facilitates the generation of additional token incentives for SPOs, fostering greater participation in the network.

DePIN Modular Architecture

Base Node Customization

• Description: Customizes Cardano Stake Pool Operator (SPO) nodes to integrate seamlessly with the DePIN SDK.
• Components:
• Node Configuration: Configures nodes to support data collection, processing, and blockchain integration.
• Data Collection: Gathers real-world data from connected physical infrastructure.
• Data Processing: Preprocesses collected data using offchain compute middleware.
• Blockchain Integration: Integrates nodes with Cardano's blockchain for secure data storage and transaction processing.

Logic of Request Propagation across Relay Nodes

• Description: Handles request routing and propagation across the network through relay nodes.
• Components:
• Request Routing: Routes incoming requests to appropriate relay nodes based on factors like proximity and capacity.
• Relay Node Communication: Facilitates efficient communication between relay nodes.
• Load Balancing: Distributes requests evenly across the network to optimize resource usage.
• Fault Tolerance: Reroutes requests during node failures or network disruptions to maintain continuous operation.

Logic of Offchain Compute Middleware

• Description: Preprocesses real-world data before integration into the blockchain network.
• Components:
• Data Preprocessing: Ensures data consistency, accuracy, and security.
• Algorithm Execution: Executes preprocessing tasks using optimized algorithms.
• Resource Management: Efficiently manages computing resources to minimize latency.
• Security Measures: Implements encryption, authentication, and access control for data protection.

Logic of Rewarding Mechanism based on Tasks

• Description: Incentivizes participation and engagement within the ecosystem through rewarding mechanisms.
• Components:
• Task Definition: Defines tasks eligible for rewards, such as node operation and data validation.
• Reward Calculation: Calculates rewards based on task complexity and contribution.
• Token Issuance: Issues utility tokens as rewards for completed tasks.
• Incentive Alignment: Aligns incentives with desirable behaviors to foster network growth and sustainability.
• Staking: Staking mechanism for token holders to provide security for the network.

Use Cases

The DePIN Modular SDK will support a variety of low-processing DePIN applications, including:

1. Decentralized Virtual Private Networks (VPN)
2. Decentralized Messaging Platforms
3. Decentralized Identity Management Systems
4. Decentralized Content Delivery Networks (CDNs)
5. many more..

Conclusion

In conclusion, the DePIN Modular SDK aims to provide a boilerplate to build DePIN dApps by leveraging Cardano's stake pool operator network. By providing a robust infrastructure and modular SDK, developers can create innovative applications while stakeholders can contribute to and benefit from a more decentralized and secure ecosystem. Through incentivization mechanisms and versatile use cases, the DePIN SDK brings newer revenue streams for SPOs.

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

The DePIN Modular SDK project offers substantial benefits to the Cardano community:

• New Revenue Streams for SPOs: The project creates opportunities for stake pool operators (SPOs) to generate additional revenue through the deployment of new services and applications within the Cardano ecosyste
• Expanded Use Cases for the Cardano Community: By providing developers with versatile tools and resources, the SDK encourages the exploration and implementation of innovative use cases, enriching the Cardano experience for users and stakeholder
• Simplified Development of DePIN Products: The SDK streamlines the development process for DePIN products, offering developers user-friendly tools and frameworks to accelerate product creation and deployment.

Key Metrics:

• Adoption Rate: Tracks SDK adoption among developers and stakeholders through github.
• dApp Deployment: Measures the number and quality of dApps built with the SDK.
• Stakeholder Engagement: Solicits feedback to gauge satisfaction and engagement.

Sharing outcomes:

• Community Engagement: Regular updates across forums and social media.
• Workshops: Distributes comprehensive documentation and hosts workshops.
• Collaborative Initiatives: Seeks partnerships with SPOs to amplify impact.
• Developer Support: Establishes support channels and feedback mechanisms on Github.

Through transparent communication and collaborative efforts, the project aims to maximize its impact on the Cardano ecosystem's growth and success.

[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?

Capability to Deliver

Our team is uniquely equipped to deliver this project with high levels of trust and accountability, thanks to a blend of direct experience and technical expertise within the Cardano ecosystem:

• Proven Track Record: Our team has been building products and solutions for Cardano under Lovelace Club brand since past two years that required meticulous planning and robust technical implementation, recognized for their innovation and impact.

• Development Team: Our developers have extensive experience in blockchain development, particularly on the Cardano platform. They have contributed to successful Cardano-based projects and are proficient in cardano dApp development.

• Established Brand Presence: We have built a recognized brand within the Cardano community, the Lovelace Club, where we successfully ran an on-chain randomized lottery platform. This experience highlights our capability to manage and execute blockchain-based projects effectively.

• Expertise and Experience: Our team possesses extensive experience in blockchain development and cryptography, providing us with a profound understanding of the complexities involved. We have successfully developed several products and brands within the Cardano ecosystem, including:
• An on-chain randomized lottery protocol (https://alpha.lottery.lovelaceclub.com/),
• A staking protocol (https://staking.lovelaceclub.com),
• An on-chain communication platform (https://v1.adaconnect.io).

With a collective experience of over 20 years in the blockchain domain, our team is well-equipped with the necessary expertise to develop and deliver this project. This blend of experience and proven success in the Cardano ecosystem ensures that we are prepared to bring this concept to fruition, enhancing the Cardano blockchain's capabilities and community engagement.

Validating Feasibility

To ensure our approach is feasible and to refine our project concept, we will:

• Concept Testing: Initially, we will develop a low-fidelity prototype to test the core concepts and gather early feedback from a small group of ADA holders and startups.

• Community Feedback: We will engage with the wider Cardano community through forums and interactive sessions to validate our approach and adapt based on community input.

• Iterative Development: By adopting an agile methodology, we will iteratively develop and enhance the prototype, ensuring each stage is aligned with user needs and project goals.

Trust and Accountability in Fund Management

We are committed to managing funds with transparency and responsibility. Here are the key steps and processes we will implement:

• Transparent Reporting: We will provide regular, detailed reports on fund allocation and project progress, available to all stakeholders through our website and community forums.

• Stakeholder Engagement: By maintaining open lines of communication and involving stakeholders like founders and developers, we build trust and ensure that the project remains aligned with the community’s interests and expectations.

This comprehensive capability and robust track record position us to deliver this proposal on Cardano, driving forward the blockchain's evolution and expanding its use cases for a global audience.

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

Milestone 1: Designing the Architecture of the DePIN Modular SDK

A: Milestone Outputs

• A detailed architectural design document for the DePIN Modular SDK that will:
• Outline the architecture and modular components.
• Define the integration points for Cardano Stake Pool Operators (SPOs) to ensure seamless interaction with the SDK.
• Describe the offchain compute infrastructure and its role in preprocessing real-world data before blockchain integration.
• Detail the token incentive structures and mechanisms to reward SPOs and other network participants.

B: Acceptance Criteria

• The architectural design will provide a comprehensive blueprint with clearly defined modules and interfaces.
• Integration strategies with Cardano SPOs will be clearly laid out to facilitate easy adoption and minimal overhead.
• The design will include robust data preprocessing and security measures to ensure the integrity and safety of offchain computations.
• Token incentive mechanisms will be aligned with network sustainability and participant engagement, ensuring a balanced and growth-oriented ecosystem.

C: Evidence of Milestone Completion

• A finalized architecture design document, approved by the development team and external blockchain architecture experts.
• A workshop or presentation session where the architectural design is shared.

Development and Testing of the DePIN Modular SDK

A: Milestone Outputs

• A fully developed DePIN Modular SDK that will:
• Include base tools for developing lightweight DePIN applications requiring minimal computation, suitable for running alongside SPO servers.
• Support the creation of token incentives for SPOs, with tools for managing and distributing these incentives based on predefined logic.
• Feature components for node customization, request propagation, offchain compute middleware, and rewarding mechanisms as per the designed architecture.

• Comprehensive testing documentation that will:
• Detail the testing strategies and frameworks used to ensure the SDK’s functionality and performance.
• Include results from unit tests and integration tests to validate all aspects of the SDK.

B: Acceptance Criteria

• The SDK will include all the necessary modules and tools as outlined in the architectural design, with high code quality and documentation.
• The development process will incorporate feedback from initial testing phases to refine functionality and user experience.
• Testing will cover all critical paths and modules, ensuring robust performance and security, with all major bugs and issues addressed and resolved.

C: Evidence of Milestone Completion

• A complete version of the DePIN Modular SDK, ready for deployment, accompanied by a comprehensive developer guide.
• A testing report summarizing the methodologies, tests conducted, and outcomes, along with any remediation steps taken.

Open-Sourcing and Launch

A: Milestone Outputs

The open-sourcing of the DePin Modular SDK which will:

Include publishing the SDK on prominent open-source platforms like GitHub, with clear licensing and contribution guidelines.

Feature a launch to introduce the SDK to a broader audience, including developers, SPOs, and other stakeholders in the Cardano ecosystem.

B: Acceptance Criteria

The SDK will be fully open-sourced with clear documentation, enabling external developers to contribute to and extend its capabilities.

The launch will effectively promote the SDK, with demonstrated interest and engagement from the community, reflected in downloads, issues, and contributions on the repository.

C: Evidence of Milestone Completion

Links to the public repositories where the SDK is available.

Press releases, blog posts, or community updates detailing the launch and its impact on the Cardano ecosystem.

Final Milestone

A: Milestone Outputs

A comprehensive project closure report that will:

Provide an overview of the project’s achievements, including key milestones, major learnings, and any deviations from the original plan.

Share insights and feedback from the user and developer communities collected during the launch.

Outline future development pathways and potential enhancements for the SDK, ensuring long-term viability and growth.

B: Acceptance Criteria

The project closure report will encapsulate the entire development journey, offering clear guidance for future enhancements and community involvement.

C: Evidence of Milestone Completion

• A detailed project closure report, including feedback from stakeholders and a roadmap for future updates and community engagement.

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

Adnan Khan - Tech Lead, Lovelace Club | Product Owner, SyncAI

Adnan is a seasoned web3 professional with 5 years experience in building MVPs, product development, and achieving scalability for early-stage startups. He is graduated with a bachelors in Data Science and Machine Learning. His expertise includes data analytics and web3 development, particularly on-chain analytics. Adnan has served as a research analyst at GravityX Capital and collaborated with top web3 projects like dYdX, Polygon, Frontier, and Bullieverse. He is also a three-time Catalyst winner with a track record of successful proposals.

Uzair Anwar - Growth and Operations Lead, Lovelace Club

Uzair is driving Lovelace Club's product and business growth since it's inception He excels in strategic business development, operational efficiency, and leveraging DeFi and NFT landscapes for growth.

Lovelace Club Our team has over 20 years of collective experience in blockchain development and cryptography. We have successfully developed products within the Cardano ecosystem, including:

• An on-chain randomized lottery protocol (https://alpha.lottery.lovelaceclub.com/)
• A staking protocol (https://staking.lovelaceclub.com)
• An on-chain communication platform (https://v1.adaconnect.io/)

Our expertise ensures we are well-prepared to develop and deliver innovative solutions that enhance the Cardano blockchain's capabilities and community engagement.

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

Milestone 1: 

Total Duration: 45 Days

Senior Cardano Developer: 16000 ADA

Senior Systems Expert: 20000 ADA

Solution Architect: 9000 ADA

Total: 45000 ADA

Milestone 2: 

Total Duration: 45 Days

Senior Cardano Developer: 16000 ADA

Senior Systems Expert: 20000 ADA

Solution Architect: 9000 ADA

Total: 45000 ADA

Milestone 3:

Total Duration: 30 Days

Total Duration: 45 Days

Senior Cardano Developer: 16000 ADA

Senior Systems Expert: 20000 ADA

Solution Architect: 9000 ADA

Total: 45000 ADA

Final Milestone:

Total Duration: 30 Days

Senior Cardano Developer: 10000 ADA

Senior Systems Expert: 5000 ADA

Total: 15000 ADA

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

The cost of the project, set at 150,000 ADA, represents significant value for money for the Cardano ecosystem, taking into account the following factors:

Expertise in Cardano: The project necessitates skilled professionals with specialized knowledge of the Cardano blockchain & ecosystem.

These skills are in high demand and command premium rates. The budgeted costs are aligned with industry standards for such expertise.

• Efficient Resource Allocation: The proposed costs for developing and deploying the Modular DePIN SDK on the Cardano blockchain are carefully evaluated to ensure efficient resource allocation. By leveraging existing infrastructure and expertise within the Cardano community, the project minimizes unnecessary expenditures while maximizing the impact of the investment.

• Community-driven Development: The costs are justified by the extensive user feedback and low-fidelity prototype development process. This ensures that resources are allocated towards building a solution that resonates with the needs and preferences of the Cardano community, maximizing the likelihood of adoption and success.

• Feasibility Assessment: The costs are determined based on a thorough feasibility assessment, taking into account factors such as development complexity, regulatory considerations, and market dynamics. This rigorous evaluation process minimizes the risk of budget overruns and ensures that the project remains financially viable throughout its lifecycle.

• Value Proposition: The costs of the proposal are justified by the potential value it brings to the Cardano ecosystem. By democratizing access to venture capital and fostering innovation within the community, the project has the potential to unlock new opportunities for growth and development, ultimately delivering significant long-term value for stakeholders.

In summary, the costs associated with the proposal are justified by the efficient allocation of resources, community-driven development approach, thorough feasibility assessment, and the potential value proposition for the Cardano ecosystem.