RWA Tokenization of Agriculture Assets

[GENERAL] Name and surname of main applicant

José Ramón Velázquez Cáceres

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

Individual

[GENERAL] Requested funds in ada

150000

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

10

[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)

Tokens for fractional ownership in a cattle feedlot will be issued via NMKR, under a compliant legal framework. Smart contracts will automate dividend payouts for a secure investment opportunity

[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

The project will be open source with the exception of the token issuance process and necessary KYC (Know Your Customer) verifications, which will be managed by a third-party service provider (NMKR). All other components of the project, such as the smart contracts, legal framework, and operational processes, will be made available under the MIT License.

Smart contracts, designed using Aiken for automating dividend distributions, will be open source and maintained in a public repository. The legal framework, which ensures compliance with Paraguayan law for tokenizing real-world assets, will also be openly accessible. This approach ensures that both the legal and technical facets of the project are transparent and available for public benefit.

Although NMKR will handle the token issuance and KYC, all other project-related elements, including smart contracts and legal documentation, will be open for auditing, collaboration, and learning by the Cardano community. This fosters an environment of transparency and collaboration, offering a valuable framework for future projects focused on tokenizing real-world assets.

[METADATA] Horizons

RWA

[SOLUTION] Please describe your proposed solution

Problem

Cardano users currently lack accessible, secure, and legally compliant investment opportunities in the agricultural sector, particularly for fractional ownership in businesses like cattle feedlots. Agricultural businesses face challenges in attracting global investment due to high operational costs, limited legal frameworks, and difficulties in offering transparent, high-yield returns. This limits investment opportunities for Cardano users and hampers growth in the agricultural sector.

Our Approach

We propose to tokenize the equity of a cattle feedlot business using NMKR, enabling Cardano users to purchase fractional ownership in the business. Each token represents a share in the business, with profits distributed as dividends through Aiken smart contracts on the Cardano blockchain. This ensures transparency, automated dividend payouts, and full compliance with Paraguayan law. NMKR will handle stakeholder verification, including KYC, during the Proof of Concept (PoC) stage.

Unique Elements of the Solution

• Tokenization of Feedlot Business: Fractional ownership of the cattle feedlot will be offered through tokenized shares, providing Cardano users with secure, compliant investment opportunities.
• Aiken Smart Contracts for Dividends: Smart contracts will automate the distribution of profits, ensuring transparency and eliminating intermediaries.
• Insurance for Agricultural Risks: Collaborations with insurance providers will mitigate risks such as livestock mortality and operational disruptions, adding security for both physical assets and tokenized equity.
• Verification of Token Owners: NMKR will manage identity verification, ensuring compliance and smooth token issuance during the PoC stage.
• Web Portal for Token Services: A dedicated web portal, developed by full-stack developers, will integrate NMKR’s services through APIs for token minting, user onboarding, and investment tracking.
• Compliance with Paraguayan Legal Framework: The tokenization process will comply with Paraguayan law, protecting token holders' rights and enhancing investor confidence.
• Fully Collateralized and Liquid Ownership: Tokens will be 100% backed by real-world assets (the cattle feedlot), ensuring security. Smart contracts will allow token holders to exchange their tokens for ADA, offering liquidity. Token holders can liquidate their positions anytime but must hold until maturity to receive the annual percentage yield (APY).
• Scalability: This tokenization model can expand to other agricultural assets such as crops, real estate, and carbon credits, offering diversified opportunities within Paraguay.

Why This Approach?

Our solution leverages Cardano's blockchain technology, NMKR for token issuance, and Aiken smart contracts to create a secure, scalable, and legally compliant investment platform. This integration allows Cardano users to invest confidently in agricultural businesses, benefiting from automated, transparent dividend payouts.

The web portal simplifies user interaction, enabling easy participation in token sales and real-time investment monitoring. The legal framework ensures compliance with Paraguayan law, preventing fraud and ensuring transparent ownership records.

Who Will Benefit?

• Cardano Users/Investors: Gain access to secure, high-yield investment opportunities with automated dividend payouts and the ability to exchange tokens for ADA at any time.
• Cattle Feedlot Business: Increased liquidity and global investment will facilitate expansion and stability.
• Insurance Providers: Secure investments will be backed by collaborations with agricultural insurers covering key risks.
• Cardano Ecosystem: This project demonstrates Cardano’s ability to tokenize real-world businesses, offering compliant investment solutions and driving transaction volume.

Proving Our Impact

The success of the project will be measured through key performance indicators such as:

• Token issuance via NMKR: Tracking the number of tokens issued for fractional ownership.
• Investment raised: Monitoring the total investments from Cardano users.
• Dividends distributed via smart contracts: Measuring the volume and frequency of dividend payments.
• Insurance coverage: Tracking the number of insured assets for added security.
• Web portal adoption: Evaluating user engagement metrics for token minting and investment tracking.
• Scalability to other assets: Expanding the model to new agricultural assets such as crops and carbon credits.

Paraguay’s Strategic Position:

Paraguay is strategically positioned to benefit from large infrastructure projects such as the Transoceanic Bi-Corridor Highway, funded by FONPLATA. This major highway project connects Paraguay to key South American ports, significantly improving the country’s logistics capacity for agricultural exports. By improving access to international markets, Paraguay’s agricultural industry, including the cattle sector, will gain competitive advantages through reduced transportation costs and enhanced export opportunities.

Additionally, Paraguay’s beef exports to the U.S. are growing. According to the USDA, the demand for Paraguayan beef in the U.S. market is strong, driven by the country's ability to supply high-quality meat at competitive prices. Tokenizing the cattle industry aligns with these trends, providing a way to capitalize on Paraguay’s expanding role in the global meat market.

Sources:

• Paraguay Livestock and Products Annual
• Transoceanic Bi-Corridor Highway

Why is This Important to Cardano?

This project showcases how Cardano’s blockchain can tokenize real-world assets, providing legally compliant, transparent, and scalable investment opportunities in high-yield agricultural businesses. The use of Aiken smart contracts and a user-friendly web portal highlights Cardano’s strengths in decentralized finance and real-world asset tokenization.

By offering fully insured and 100% asset-backed tokens, and the ability to liquidate positions at any time, this project will demonstrate Cardano's potential as a platform for secure, innovative investment solutions in the agricultural sector.

Fully Collateralized Smart Contracts

Smart contracts will ensure that the tokens are 100% backed by real-world assets (the cattle feedlot). They will automate dividend payouts based on operational profits and allow token holders to exchange their tokens for ADA at any time. Investors must hold tokens until a specific maturity period to receive competitive APY returns. All investments will be fully insured, offering liquid ownership that can be cashed out whenever necessary.

Value for Money

This project provides significant value by offering Cardano users access to high-yield, legally compliant investment opportunities in the agricultural sector. By tokenizing real-world assets such as cattle feedlots, we enhance the Cardano ecosystem's real-world utility while driving transaction volume and global adoption of blockchain technology.

By integrating NMKR for token issuance and using Aiken smart contracts to automate dividends, the project reduces operational costs and ensures scalability. The open-source legal framework and transparent investment processes foster long-term trust, providing a foundation for replicable tokenization efforts across other asset classes, including real estate and carbon credits.

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

Value to the Cardano Community

This project will bring significant value to the Cardano community by unlocking new, legally compliant, and high-yield investment opportunities in agricultural assets. Tokenizing the equity of a cattle feedlot business allows Cardano users to access a traditionally underserved asset class, opening doors for diversified investment portfolios. The project demonstrates the real-world application of Cardano’s blockchain tools, strengthening the network’s position as a leader in tokenization and decentralized finance.

Key Benefits to the Cardano Community:

1. Increased Transaction Volume: The tokenization of real-world agricultural assets will drive transaction volume on the Cardano network, showcasing its scalability and real-world utilit
2. Open-Source Legal Framework: This project will develop an open-source legal framework for asset tokenization, allowing other businesses and sectors, such as real estate and supply chain machinery, to follow sui
3. Increased Liquidity: Tokenization will increase liquidity for agricultural businesses, providing easier access to capital while allowing Cardano users to trade fractional ownership easil
4. Competitive High Yields: Investors can achieve high-yield returns, potentially higher than traditional staking, while benefiting from the transparency and security of the Cardano blockchain (expected to be 30% APY, final calculations are being done by the team now)
5. Portfolio Diversification: Cardano users can diversify their portfolios by gaining exposure to agricultural and other future tokenized assets, reducing risk while increasing stabilit
6. Showcasing Cardano Tools: The project will serve as a case study for using Cardano tools such as NMKR and Aiken smart contracts to build secure, transparent, and compliant tokenization model

Measuring the Impact

Quantitative Metrics:

• Transaction Volume: We will track the total number of transactions on Cardano resulting from the tokenized feedlot.
• Token Issuance via NMKR: The number of tokens issued and sold to investors.
• Investment Raised: The total volume of investments raised from Cardano users.
• Dividends Distributed: The volume and frequency of dividends paid out to token holders through Aiken smart contracts.
• Insurance Coverage: The number of insured assets to safeguard investors' capital.
• Web Portal Engagement: User interaction metrics on the NMKR-linked portal, including how many users mint tokens and monitor investments.

  

Qualitative Metrics:

• Stakeholder Verification : Tracking the verification of key stakeholders, ensuring transparency and compliance.
• Open-Source Legal Framework Adoption: Monitoring how many other businesses and projects use the framework for their tokenization initiatives.
• Portfolio Diversification: Evaluating the diversity of portfolios within the Cardano community as users invest in tokenized real-world assets.

Sharing Outputs and Opportunities:

1. Open Reports: We will publish quarterly reports on metrics such as token issuance, dividends distributed, and investment volume
2. Workshops and Presentations: We will organize workshops to showcase the success of the project and how Cardano’s tools can be leveraged for tokenizatio
3. Case Studies: A comprehensive case study on the project’s impact, challenges, and success will be made available to the Cardano ecosyste
4. Collaborations: We will actively collaborate with other Cardano-based projects and businesses, sharing our knowledge and resources to maximize the impact and drive innovation within the Cardano ecosyste

Conclusion

By providing Cardano users with secure, high-yield, and legally compliant investment opportunities in agriculture, this project will demonstrate the potential of tokenizing real-world assets on the Cardano blockchain. It will pave the way for further adoption of Cardano tools like NMKR and Aiken across multiple industries, establishing Cardano as a leader in secure and compliant blockchain-based investments.

[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 the Project

Our team’s unique combination of hands-on agricultural experience, blockchain expertise, legal knowledge, and governance leadership positions us to deliver this Real-World Asset (RWA) tokenization project with high levels of trust, accountability, and innovation.

• Jose Velazquez (Project Lead & Strategic Management):
• Jose is not only a Fund 7, Fund 8, and Fund 12 proposer but also the founder of the Bolivia Community Hub and co-founder of the Paraguay Community Hub, demonstrating his ability to build and lead decentralized communities. His ownership of a cattle feedlot in Paraguay gives him direct insight into the operational challenges and opportunities within the agricultural sector. This real-world experience allows him to translate traditional agricultural business models into tokenized assets that are accessible on the Cardano blockchain. His deep understanding of governance, having hosted constitutional workshops in Ecuador, Paraguay, and Bolivia, will be key in designing a transparent, decentralized investment model that is aligned with investor interests and regulatory frameworks. His candidacy for the Intersect Civics and Budget Committees further strengthens his commitment to transparent governance structures, which will be embedded into this project.

• David Tacuri (Lead Developer & Aiken Smart Contract Expert):
• David’s role as co-founder of the Bolivia Community Hub and host of the Ecuador constitutional workshop highlights his expertise in community-driven governance. His technical skills as a smart contract developer using Aiken are unmatched in the ecosystem, having served as a delegate for the Argentine Constitutional Convention and as a Fund 7, Fund 11, and Fund 12 proposer. He will be responsible for building the Aiken smart contracts that automate dividend payouts and ensure transparent, secure transactions. In addition to coding, David will incorporate decentralized governance principles into the technical framework, allowing for a project that not only runs smoothly but also offers community oversight and accountability. His leadership in decentralized solutions will also help ensure that the project’s governance and legal structures are adaptable and scalable.

• Roberto Cerrud (Blockchain Lead Developer):
• With 18 years of development experience and 25 years in technical support, Roberto brings technical depth to blockchain architecture and development. As a Plutus Pioneer and Haskell educator, he will focus on ensuring the security, scalability, and efficiency of the blockchain infrastructure, critical to the project’s long-term success. Roberto will also lead efforts in technical integrations with NMKR for token minting, ensuring that the token issuance process is user-friendly and legally compliant, while maintaining transparency for all stakeholders.

• Nestor Rodriguez (Paraguayan Legal Expert):
• Nestor’s deep connections within Paraguayan legal and governmental sectors make him a critical player in ensuring that the project meets all legal requirements. His role goes beyond traditional legal counsel; Nestor will oversee the development of a legally compliant tokenization framework that ensures investor rights are protected. He will work closely with government bodies to establish a legal precedent for tokenized agricultural assets in Paraguay, providing a solid foundation for future tokenization projects. His expertise ensures the project's smooth navigation through regulatory processes.

• Fernando Yánez (Software Engineer & Lead Full Stack Developer):
• Fernando’s background in electoral systems provides a unique perspective on developing transparent and secure software infrastructure. His knowledge will be essential in ensuring that the tokenization platform is tamper-proof, scalable, and efficient, while his project management skills will ensure that the technical team meets its deadlines. Fernando will also focus on building the web portal linked to NMKR, creating a seamless user experience for token holders to monitor their investments, receive dividends, and engage with the platform.

Managing Funds with Trust and Accountability

We take transparency and accountability very seriously. Our approach to managing project funds involves multiple layers of oversight and verification to ensure that community trust is maintained throughout the project lifecycle.

• Milestone-Based Fund Release:
• Funds will be disbursed incrementally, contingent upon the successful completion of predefined milestones such as token issuance, legal compliance, and smart contract deployment. Each milestone will be verified by third-party auditors and shared publicly with the Cardano community. This ensures that funds are used responsibly and efficiently, with no unnecessary spending or delays.

• Quarterly Financial Reports:
• Detailed financial reports will be published quarterly, outlining every allocation and expense. These reports will provide full transparency on how the funds are being utilized and will be shared with the Cardano community and Project Catalyst. This approach allows stakeholders to track project progress and financial health at regular intervals.

• Independent Audits:
• Independent, third-party audits of the Aiken smart contracts will ensure that the technology is secure, functional, and compliant. These audits will safeguard the integrity of the entire financial and technical system, particularly concerning dividend distribution. The audits will be made publicly available, ensuring full transparency and trust from the investor community.

• Legal Compliance:
• With Nestor Rodriguez overseeing the legal structure, the entire tokenization process will be in full compliance with Paraguayan law, protecting both the investors and the agricultural businesses involved. We will also ensure that investor rights are legally enforceable, providing an additional layer of protection and trust.

Validation of Feasibility

• Proof of Concept (PoC) Stage:
• The project will begin with a fully operational Proof of Concept utilizing NMKR for token issuance and Aiken smart contracts for automated dividend distribution. The PoC will validate the technical, legal, and business models, ensuring that the project is feasible and scalable.

• Stakeholder Engagement:
• Throughout the PoC and beyond, we will engage closely with agricultural businesses, legal experts, and Cardano investors. By gathering continuous feedback, we will refine the tokenization model to meet the needs of all stakeholders while adhering to local regulations.

• Scalable Expansion:
• Once the PoC is validated, the tokenization model will be expanded to include other agricultural assets, such as crops and farming machinery, offering a diversified portfolio of real-world assets. This approach ensures that Cardano users have multiple high-yield investment options, while maintaining legal and technical integrity.

Why We’re Uniquely Positioned to Deliver

Our team's combined expertise in governance, blockchain technology, and the agricultural sector uniquely qualifies us to deliver this project. Jose Velazquez’s direct experience with agricultural assets, combined with his leadership in governance-building within the Paraguay and Bolivia hubs, offers unparalleled insight into how to translate real-world businesses into tokenized assets on the Cardano blockchain. 

David Tacuri’s mastery of Aiken smart contracts, combined with his leadership in decentralized governance workshops across Ecuador and Bolivia, ensures that the technical infrastructure of this project is built with community governance in mind. The entire team’s commitment to transparency, regulatory compliance, and technological innovation ensures that we are not only capable of delivering this project but also setting a new precedent for real-world asset tokenization within the Cardano ecosystem.

By using a milestone-based funding approach, third-party audits, and comprehensive stakeholder engagement, we guarantee a project that is transparent, accountable, and legally sound, paving the way for future tokenization efforts in Paraguay and beyond.

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

Milestone 1: Legal Framework & Tokenization Design (30% of Funds - 45,000 ADA)

Timeframe: Month 1-3

Objective: Establish the legal framework for tokenization and design the token issuance mechanism for fractional ownership in the cattle feedlot.

Milestone Outputs:

1. Creation of legal documentation for token issuance, compliant with Paraguayan law, overseen by Nestor Rodriguez.
2. Design of the tokenomics model for fractional ownership, including token supply, dividends, and governance framework.
3. Collaboration with the legal team to ensure compliance with regulatory requirements.
4. Onboarding of two cattle feedlots for the Proof of Concept (PoC), ensuring both legal and operational readiness.

Acceptance Criteria:

• Legal Documentation:
• Legal framework completed and aligned with Paraguayan law, approved by Nestor Rodriguez.
• Tokenomics Model:
• Completed tokenomics model outlining token supply, fractional ownership, and dividend distribution.
• Onboarding of Feedlots:
• Successful onboarding of two cattle feedlots into the tokenization model.
• Insurance Partnership:
• Agreement with an insurance provider covering risks related to the feedlots, such as livestock mortality or disease.

Evidence of Milestone Completion:

1. Signed legal documents and agreements uploaded to the project’s shared drive.
2. Finalized tokenomics model available for review.
3. Proof of onboarding for two cattle feedlots, including agreements and documentation.
4. Insurance policy documentation with a partner insurance company, uploaded for transparency.

Milestone 2: Onboarding of Feedlots & Insurance Setup (25% of Funds - 37,500 ADA)

Timeframe: Month 3-6

Objective: Complete the onboarding of feedlots and secure insurance coverage, ensuring that all key operational elements are in place before the token minting.

Milestone Outputs:

1. Full onboarding of two feedlots to the tokenization system, ensuring they are integrated with the legal framework.
2. Securing insurance coverage for risks such as livestock mortality and operational disruptions, ensuring protection for investors.
3. Collaboration with the insurance provider for stakeholder confidence and asset protection.

Acceptance Criteria:

• Feedlot Onboarding:
• Onboarding documentation, legal agreements, and operational plans for both feedlots are completed and integrated into the tokenization framework.
• Insurance Setup:
• Final insurance contracts signed, covering risks for the tokenized cattle feedlots.

Evidence of Milestone Completion:

1. Documentation of full onboarding for both feedlots uploaded for review.
2. Insurance contracts uploaded to the shared repository, detailing coverage for the assets.
3. Confirmation of insurance compliance with Paraguayan law.

Milestone 3: Smart Contract Development & Web Portal with NMKR Integration (30% of Funds - 45,000 ADA)

Timeframe: Month 6-9

Objective: Develop and deploy the smart contracts for dividend distribution, along with the web portal linked to NMKR for token issuance.

Milestone Outputs:

1. Development and deployment of Aiken smart contracts to automate dividend distribution for token holders.
2. Creation and launch of a secure web portal integrated with NMKR for token minting, user onboarding, and management.
3. Security audit of the smart contracts and the web portal to ensure compliance and security.
4. Testing of the smart contracts on the Cardano testnet to ensure proper functionality and compliance with the legal framework.

Acceptance Criteria:

• Aiken Smart Contracts:
• Smart contracts deployed on the Cardano testnet, successfully passing all tests related to dividend distribution.
• Web Portal:
• Fully functional web portal linked to NMKR, ready for investor onboarding and token issuance.
• Audits:
• Smart contracts and web portal must pass independent security audits, ensuring no vulnerabilities or risks.
• Successful Testing:
• Successful execution of test cases for both the web portal and smart contracts, with results documented.

Evidence of Milestone Completion:

1. Testnet logs showing successful deployment and testing of the smart contracts.
2. Web portal link for review, showcasing integration with NMKR and the tokenization process.
3. Audit reports from independent security auditors, available for review.
4. Testing report uploaded, documenting the outcomes and fixes made during the testing phase.

Final Milestone: Token Minting & Launch with APY Announcement (15% of Funds - 22,500 ADA)

Timeframe: Month 9-10 (1 Month)

Objective: Mint the tokens and launch the investment offering with competitive APY information, finalizing the Proof of Concept (PoC).

Milestone Outputs:

1. Token Minting: Successful minting of tokens through NMKR, representing fractional ownership of the cattle feedlot operation.
2. APY Announcement: Disclosure of the competitive APY to token holders, based on the projected returns from the feedlot operations.
3. Final Launch: Public launch of the investment offering with all components, including smart contracts, legal frameworks, insurance, and web portal fully functional.
4. Final Performance Review: A comprehensive review of the platform’s performance, including engagement metrics and feedback from early investors.

Acceptance Criteria:

• Token Minting:
• Tokens are minted successfully using the NMKR platform, and initial investors are onboarded.
• APY Information:
• Clear and competitive APY for the investment opportunity is disclosed, providing transparency on the returns expected from the feedlot operations.
• Final Launch:
• Full launch of the investment offering, with all systems functioning seamlessly (web portal, smart contracts, insurance, and legal compliance).
• Performance Review:
• Final review of platform performance, including feedback from early investors, metrics on token issuance, and stakeholder engagement.

Evidence of Milestone Completion:

1. Token issuance records and minting logs from NMKR, demonstrating the number of tokens minted and distributed.
2. Documentation showing the APY calculations and returns model shared with investors.
3. Public access to the live web portal with all integrated services (token minting, smart contracts, investor management).
4. Final performance report uploaded, including data on token minting, investor engagement, and platform metrics.
5. A closing video or blog post summarizing the journey of the project from inception to completion.

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

Our project team consists of highly experienced individuals with diverse skill sets across blockchain development, legal expertise, project management, and community engagement. Below is a detailed list of the key team members and their roles within this project:

Jose Velazquez – Project Lead & Governance Advisor

• LinkedIn: Jose Velazquez
• Role: Jose is responsible for overall project management, coordinating between the legal, technical, and business teams to ensure the timely delivery of project milestones. His experience in community governance and blockchain gives him the skills needed to oversee the regulatory and compliance aspects of the project.
• Experience:
• Fund 7, Fund 8, and Fund 12 Catalyst Proposer.
• Co-host of the Ecuador Constitutional Workshop and Paraguay Constitutional Workshop, and host of Bolivia Constitutional Workshop.
• Candidate for the Intersect Civics Committee and Budget Committee.
• Owner of a cattle feedlot in Paraguay.
• Elected Delegate for the Argentine Constitutional Convention.

David Tacuri – Lead Developer & Smart Contract Engineer

• LinkedIn: David Tacuri
• Role: David leads the technical development of the project, including the smart contract coding using Aiken and the development of the web portal integrated with NMKR. He will also manage technical audits and ensure secure token issuance.
• Experience:
• Fund 7, Fund 11, and Fund 12 Catalyst Proposer.
• Experienced in smart contract development with Aiken and web portal development.
• Co-host of the Bolivia Constitutional Workshop and host of the Ecuador Constitutional Workshop.
• Candidate for the Intersect Membership & Community Committee and Civics Committee.
• Elected Delegate for the Argentine Constitutional Convention.

Nestor Rodriguez – Legal Advisor

• Role: Nestor is the legal expert responsible for ensuring that the tokenization process complies with Paraguayan law. He will also oversee the drafting and approval of all legal documentation, ensuring that all stakeholders are protected.
• Credentials: http://csj.im/1BPZD
• If link doesn’t work use QR to verify Nestor’s credentials

• Experience:
• Legally registered lawyer in Paraguay with deep expertise in local regulations.
• Well-connected within Paraguay, which will be essential for ensuring smooth regulatory approvals and legal structuring of the feedlot and tokenization framework.

Roberto Cerrud – Blockchain Developer & Technical Consultant

• LinkedIn: Roberto Cerrud
• Role: Roberto will provide blockchain and technical consulting support for smart contract audits and ensure the overall quality of the system's security and efficiency.
• Experience:
• Plutus Pioneer and Atala Pioneer Program graduate with 18+ years of experience as a developer.
• Deep expertise in Haskell, blockchain technology, and DevOps.
• Teaches Haskell and Plutus cohorts in Emurgo Academy, bringing an educational perspective to the project.

Fernando Yánez – Web Developer & Full Stack Engineer

• LinkedIn: Fernando Yánez
• Role: Fernando will assist in the development of the web portal and will manage the user experience and backend infrastructure, ensuring seamless integration with NMKR for token minting.
• Experience:
• Extensive background in software engineering and electoral processes in Ecuador.
• Knowledgeable in various programming languages and blockchain technology, ensuring a secure and scalable platform.

Recruitment Plans

If the project scales to include other agricultural assets and additional development requirements, we will recruit additional team members with the following skills:

1. Frontend Developer: To expand the user interface of the web portal for additional agricultural token offerings.
2. Marketing Specialist: To manage outreach, user engagement, and community building within the Cardano ecosystem and beyond.
3. Blockchain Auditor: To ensure thorough smart contract auditing for any additional features or expansions.

All the individuals mentioned above have already been engaged for this project, and they have confirmed their willingness and capacity to support its completion. Communication with the team happens through direct channels, ensuring smooth coordination.

Key Strengths of the Team

• Trust and Experience: The team includes experienced Catalyst proposers with funded projects across multiple rounds (Fund 7, 8, 11, 12) and extensive governance involvement, proving their commitment and ability to deliver.
• Blockchain Expertise: Strong blockchain development and smart contract capabilities ensure that the tokenization process will be secure, scalable, and efficient.
• Legal and Regulatory Knowledge: The team’s in-depth understanding of Paraguayan law, led by Nestor Rodriguez, guarantees compliance with local regulations, building trust and security for investors.

This team has the required expertise and resources to deliver the project successfully, with a focus on transparency, accountability, and compliance.

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

Milestone 1: Legal Framework & Tokenization Design  

Total Budget: 45,000 ADA  

Timeframe: Month 1-3

Objective:

Establish the legal framework for tokenization and design the token issuance mechanism for fractional ownership in the cattle feedlot.

Tasks Breakdown:

• Jose Velazquez – Project Management & Feedlot Onboarding (50 ADA/hour, 130 hours)  
• Coordinating with two feedlots and ensuring their operational readiness.
• Managing relationships with insurance providers and overseeing the general project management.  

 

Total Cost: 6,500 ADA

• Nestor Rodriguez – Legal Services (60 ADA/hour, 180 hours)  
• Drafting legal documentation for token issuance, ensuring it complies with Paraguayan law.
• Reviewing legal contracts and managing risk assessment for tokenized assets.  

 

Total Cost: 10,800 ADA

• David Tacuri – Lead Developer (65 ADA/hour, 110 hours)  
• Designing tokenomics, including fractional ownership, dividend structures, and governance mechanisms.
• Creating smart contract requirements for future implementation.  

 

Total Cost: 7,150 ADA

• Fernando Yánez – Web Portal Developer (55 ADA/hour, 100 hours)  
• Initial planning for web portal architecture to integrate NMKR services.
• Designing the user interface for ease of investor onboarding and token management.  

 

Total Cost: 5,500 ADA

Outcome:

• Completed legal framework.
• Tokenomics structure defined.
• Web portal architecture and initial design prepared for integration.

Milestone 2: Onboarding of Feedlots & Insurance Setup  

Total Budget: 37,500 ADA  

Timeframe: Month 3-6

Objective:

Complete the onboarding of feedlots and secure insurance coverage, ensuring all key operational elements are in place before token minting.

Tasks Breakdown:

• Jose Velazquez – Project Management & Feedlot Onboarding (50 ADA/hour, 100 hours)  
• Finalizing feedlot onboarding, including completing documentation for tokenization.  
• Coordinating insurance partnerships and securing coverage for operational risks like livestock mortality.  

 

Total Cost: 5,000 ADA

• Nestor Rodriguez – Legal Services (60 ADA/hour, 120 hours)  
• Finalizing legal agreements with insurance providers and ensuring legal compliance with regulatory requirements.
• Risk management consultations with the feedlot operators.  

 

Total Cost: 7,200 ADA

• David Tacuri – Lead Developer (65 ADA/hour, 80 hours)  
• Ensuring that smart contracts can handle insurance coverage triggers, integrating risk mitigation mechanisms into the system.  

 

Total Cost: 5,200 ADA

• Fernando Yánez – Web Portal Developer (55 ADA/hour, 90 hours)  
• Integrating insurance and feedlot data into the web portal, ensuring transparency for investors.  

 

Total Cost: 4,950 ADA

Outcome:

• Full onboarding of feedlots.
• Secured insurance contracts covering operational risks.
• Feedlot data integrated into the web portal for investor viewing.

Milestone 3: Smart Contract Development & Web Portal with NMKR Integration  

Total Budget: 45,000 ADA  

Timeframe: Month 6-9

Objective:

Develop and deploy smart contracts for dividend distribution, and integrate the web portal with NMKR for token issuance.

Tasks Breakdown:

• Jose Velazquez – Project Management (50 ADA/hour, 80 hours)  
• Ongoing coordination of project tasks between legal, technical, and business teams.
• Ensuring smooth progress toward smart contract deployment and web portal completion.  

 

Total Cost: 4,000 ADA

• Nestor Rodriguez – Legal Services (60 ADA/hour, 100 hours)  
• Conducting legal audits of the smart contracts and ensuring compliance with token issuance regulations.
• Reviewing legal processes for automated dividend distribution.  

 

Total Cost: 6,000 ADA

• David Tacuri – Lead Developer (65 ADA/hour, 150 hours)  
• Developing Aiken-based smart contracts for automating dividend payouts and ensuring secure and decentralized operations.
• Conducting security audits and testing on the Cardano testnet.  

 

Total Cost: 9,750 ADA

• Fernando Yánez – Web Portal Developer (55 ADA/hour, 130 hours)  
• Finalizing the web portal and integrating NMKR’s API to allow users to mint and manage tokens.
• Ensuring the platform is secure and user-friendly for investors.  

 

Total Cost: 7,150 ADA

Outcome:

• Fully developed and tested smart contracts.
• Secure and functional web portal integrated with NMKR, ready for token issuance.

Milestone 4: Token Minting & Final Launch  

Total Budget: 22,500 ADA  

Timeframe: Month 9-10

Objective:

Mint the tokens and launch the investment offering with competitive APY information, finalizing the Proof of Concept (PoC).

Tasks Breakdown:

• Jose Velazquez – Project Management (50 ADA/hour, 60 hours)  
• Overseeing the minting process and ensuring the final token distribution is seamless.  
• Coordinating the public launch and managing investor relations.  

 

Total Cost: 3,000 ADA

• Nestor Rodriguez – Legal Services (60 ADA/hour, 70 hours)  
• Performing a final legal review to ensure compliance with all applicable laws before the public token offering.  

 

Total Cost: 4,200 ADA

• David Tacuri – Lead Developer (65 ADA/hour, 50 hours)  
• Conducting final audits on the smart contracts and preparing the system for the public launch.  

 

Total Cost: 3,250 ADA

• Fernando Yánez – Web Portal Developer (55 ADA/hour, 80 hours)  
• Conducting final tests on the web portal to ensure the minting process works smoothly for investors.
• Deploying the final version of the platform with full token management capabilities.  

 

Total Cost: 4,400 ADA

Outcome:

• Tokens successfully minted and distributed.
• Public launch with full investor onboarding and token management.
• APY information released to token holders.

Total Budget: 150,000 ADA

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

Value for Money for the Cardano Ecosystem

This project offers significant value to the Cardano ecosystem by establishing a pioneering framework for tokenizing real-world agricultural assets in Paraguay. By leveraging local expertise and positioning Cardano as a leader in this space, the project opens the door to new markets and investment opportunities within Paraguay’s growing agricultural sector, all while ensuring that costs remain optimized.

Justification of Costs

• Strategic Access to Paraguay’s Markets
• The project will set the stage for future tokenization initiatives in Paraguay, a country with vast agricultural potential. We are not just creating a one-off solution but establishing scalable legal and technical structures that can be replicated across various sectors, including crops, real estate, and carbon credits. Cardano will become the go-to platform for tokenizing real-world assets in this region, setting a global precedent for blockchain-driven agricultural investment.

• Local Expertise at Competitive Rates
• By working with local professionals in Paraguay, we ensure the project remains cost-effective without compromising on quality. For instance, legal services (60 ADA/hour) and smart contract development (65 ADA/hour) are priced at competitive rates for local freelance markets, offering both cost efficiency and high-level expertise necessary to navigate Paraguayan legal and business landscapes. These rates reflect a balanced approach to delivering complex blockchain solutions while ensuring value for money.

• Long-Term, Scalable Impact
• The legal and technical frameworks established for this project will serve as a foundation for future tokenization efforts. By investing in this first initiative, Cardano lays the groundwork for lower-cost replication across multiple asset classes, significantly increasing the long-term return on investment (ROI) for Cardano's ecosystem.

• Unlocking New Investment Opportunities
• This project will provide global investors access to fractional ownership of Paraguayan agricultural businesses, an asset class previously difficult to reach. Through the use of blockchain technology, we offer transparent, secure, and compliant investment opportunities, boosting Paraguay’s ability to attract international capital and providing Cardano users with diversified investment options.

Ensuring Cost-Effectiveness

• Outcome-Driven Accountability
• Instead of traditional milestone-based payments, we are adopting an outcome-driven accountability model. This ensures that funds are allocated based on the achievement of clearly defined outcomes, such as the successful deployment of smart contracts or completion of legal frameworks. Payments are only made once outcomes are validated, promoting higher accountability and ensuring that funds are spent effectively.

• Efficient Resource Allocation
• The project maximizes value by having key team members wear multiple hats, reducing the need for additional personnel while ensuring the highest level of expertise. For instance, Jose Velazquez leads both project management and feedlot onboarding, streamlining operations and keeping costs low without sacrificing quality.

• Future Cost Reduction Through Reusability
• The reusable legal and technical structures created in this project will significantly reduce the cost of future tokenization initiatives. By establishing the groundwork now, future projects in the agricultural and real estate sectors will benefit from reduced legal and development costs, making this project an investment in scalability.

Value to the Cardano Community

This project serves as a critical stepping stone for Cardano’s role in real-world asset tokenization, particularly in South America’s growing markets. By facilitating secure and compliant investments in Paraguayan agriculture, Cardano users gain access to new, high-value investment opportunities, and Paraguayan businesses benefit from increased liquidity. The frameworks developed here can be reused, ensuring that the initial investment in this project pays dividends in future tokenization efforts across various sectors. This positions Cardano as a global leader in real-world asset tokenization, providing long-term value to the ecosystem.