[VTC] ADAtrust: Decentralized Fund Management Solution on Cardano

[GENERAL] Name and surname of main applicant

Nguyen Viet Thanh

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

Entity (Incorporated)

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

6

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

Yes

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

Adatrust provides a platform to create and manage DeFi Funds with transparent spending and automated profit sharing, using multi-signature and smart contracts on Cardano, ensuring security.

[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 entire source code will be released as open source under the GPL-3.0 (GNU General Public License v3). This allows everyone to use or further develop it

[METADATA] Horizons

DAO

[SOLUTION] Please describe your proposed solution

1.Problem Awareness and Our Approach:

Currently, one of the biggest challenges for investment funds and fundraising projects is the lack of transparency in expense management, profit distribution, and fair management of stakeholder and investor rights. Additionally, members, shareholders, and investors often face difficulties tracking cash flow, confirming ownership, or participating in decision-making processes.

The Adatrust project was developed to address these issues by creating an open-source tool on the Cardano platform, allowing businesses, projects, and individuals to create and manage investment funds in a decentralized, transparent, and secure manner. By leveraging unique Cardano blockchain features like multi-signature, smart contracts, and on-chain metadata, Adatrust brings a trusted environment for all transactions and financial decisions.

2.Our Solution and Approach:

Adatrust is designed as an open-source tool that allows the community to easily customize and deploy according to the unique needs of each organization or individual. We aim to create a truly decentralized platform that anyone can participate in and contribute to, ensuring fairness and long-term scalability.

(Image 01: Adatrust System Architecture Diagram)

Adatrust includes the following main components:

Decentralized Fund Management Smart Contracts: Smart contracts on Cardano automate processes from share management and profit distribution to voting on important decisions.

  

Decentralized Voting and Governance System: Integrates on-chain voting mechanisms so that all members of the fund can participate in decision-making, such as adding new members, changing profit-sharing ratios, or restructuring the fund.

(Image 02: On-chain Voting Process Diagram)

Automated Profit Distribution System: Uses native tokens on Cardano to represent investors' shares. The system ensures that each member receives profits in proportion to their ownership, transparently and automatically.

(Image 03: Data Flow Diagram - Automated Profit Sharing)

Transparent Expense Management Tool: Administrators can create spending requests and send them to other members for approval via the multi-signature system and on-chain voting. Once the required number of signatures is reached, transactions are automatically executed without the need for any individual intervention.

Transparent Management and Reporting Interface: Provides a graphical interface (dApp) for investors and shareholders to track fund details, spending, and voting history. All information is stored on the blockchain to ensure immutability.

3.Target Users and Beneficiaries of Adatrust

Businesses, Projects, and Individuals: Those who need to create and manage decentralized investment funds with member consensus, enhancing transparency and efficiency in capital management.

Communities and DAO Projects: Projects and communities seeking decentralized self-governance can use Adatrust to build fair governance and capital allocation models, ensuring every decision is agreed upon by the entire community.

Developers and the Open Source Community: They can leverage Adatrust to build additional features or integrate with other asset management platforms on Cardano, expanding the system's applicability.

4.Uniqueness and Value of Adatrust for the Cardano Ecosystem

Adatrust is a pioneering open-source solution in building decentralized investment funds on Cardano, featuring high automation and transparency. This makes Adatrust not only a fund management platform but also a standard tool for projects and businesses wanting to harness Cardano's potential in decentralized finance (DeFi) and automated governance, with standout values as follows:

Promotes Transparency and Accountability in Every Project: Deploying Adatrust on Cardano will enhance transparency and security for investment funds, minimize fraud risks, and build trust for investors.

Increases Scalability and Broadens Cardano's Blockchain Applications: With its open-source and easy integration nature, Adatrust will be an ideal governance and fund management tool for DAOs, charitable organizations, and enterprises seeking transparent governance solutions.

Creates Community Development Motivation: Adatrust encourages participation and contributions from developers worldwide, helping the Cardano ecosystem become more complete and expanding its applicability.

We believe Adatrust will play an important role in building a trusted decentralized investment fund management platform for the Cardano ecosystem.

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

1.Positive Impact on the Cardano Community from Our Project

Adatrust will make a positive contribution to the Cardano community by providing an open-source solution, enabling anyone to easily deploy and manage decentralized investment funds (DeFi Funds). This platform not only meets the needs of businesses and organizations for fund management but also facilitates individual and community participation in investment processes democratically and fairly.

When implemented, Adatrust will create the following positive impacts:

Increase Transparency and Trust in Legitimate Investment Funds: With the ability to record all transactions and governance decisions on the blockchain, investment funds using Adatrust ensure absolute transparency. This helps investors and shareholders trust the fairness and transparency of the fund.

Promote Community Participation in Decentralized Governance and Investment: Adatrust provides tools to build democratic governance models for decentralized autonomous organizations (DAOs) and community funds, encouraging members to actively participate in important investment decisions.

Enhance Cardano's Application in Finance and Asset Management: With its comprehensive fund management features, Adatrust will help expand the use of the Cardano blockchain, making it an ideal platform for decentralized finance solutions.

Support the Development of Charitable and Nonprofit Funds: Adatrust can be used to manage charitable funds with public spending tracking, ensuring community contributions are used correctly and not misused.

2.How We Will Measure the Impact of the Project

We will use both quantitative and qualitative methods to measure the impact of the project on the Cardano community.

Quantitative factors will include:

Number of Investment Funds Deployed: Measure the number of investment funds and organizations using Adatrust for fund management. The minimum goal is to establish 10 investment funds in the first year after launch.

Number of Governance Participants: Measure the number of members and investors involved in voting and decision-making in funds using Adatrust. The goal is at least 100 active members in funds using the Adatrust platform.

Voting and Governance Participation Rate: Measure the participation rate in voting and approval of important fund decisions. The goal is for at least 51% of members to participate in voting for each decision.

Total Value Locked (TVL): Measure the total asset value (ADA and native tokens) managed through investment funds on Adatrust. The target is to reach a total managed asset value of 5 million ADA within one year.

Qualitative factors will include:

User Satisfaction Surveys: Collect feedback from investors and fund members on their experience, security, and the efficiency of Adatrust.

Case Studies: Use case studies with investment funds and charities using Adatrust to continuously improve governance and asset management with each version.

Interaction and Contribution from the Open-Source Community: Track the level of participation from open-source developers in improving and developing new features for Adatrust.

[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?

1.Team Capabilities and Experience

Highly Qualified Team: The Adatrust project team consists of members with expertise in managing several communities within the Cardano ecosystem, with many of them being ambassadors or contributors to major projects like World Mobile Token, Pavia, and CSWAP. With extensive experience working directly on the Cardano platform and deep knowledge of technical infrastructure, gained from nearly a decade of software product development, our team is confident in successfully building and deploying this project. We have successfully delivered a funded project from Fund 11, demonstrating our execution ability and commitment to the Cardano community: [Bamboo Smart Support App](https://projectcatalyst.io/funds/11/cardano-use-cases-concept/bamboo-smart-support-app-for-cardano-ecosystem-users).

Transparent and Responsible Financial Management: We have planned a clear budget for each category, ensuring the efficient and reasonable use of resources. We provide transparent financial reports to stakeholders, demonstrating our commitment to responsible fund management. We successfully managed funds from the previous project without any financial issues and are currently progressing well with the project funded under Fund 12: [Open Source for Hydra Wallet Integrated into Telegram](https://projectcatalyst.io/funds/12/f12-cardano-open-developers/open-source-for-hydra-wallet-integrated-into-telegram). We are close to completing this project.

Additionally, some members of our team have a background in managing traditional financial funds (investments in real estate, gold, and stocks) and have implemented several joint investment projects in Cardano's DeFi. This allows us to combine solid financial principles with practical decentralized solutions, ensuring the product meets both technical requirements and investment and governance needs in real-world environments.

2.How We Came Up with the Idea and Developed Our Approach

Detailed Planning: We conducted requirements gathering and analysis sessions with the Cardano community to understand the common investment and fund management needs of individuals and some projects. Then, we researched technical requirements, identified challenges, and proposed suitable technological solutions.

Thorough Learning and Technology Experimentation: All team members delved into reading and understanding the documentation, forming an idea of the technologies to be used in the project. We successfully deployed a basic smart contract prototype using multi-signature technology, Timelock scripts, and native tokens, which are core components for the Adatrust project.

We then drafted a detailed development plan for each phase to facilitate easy management and progress tracking. After each development phase, testing is conducted to validate the correctness and stability of the system.

With experience in software product development and managing projects on Cardano, we are confident in successfully implementing Adatrust. We are committed to executing the project with the highest level of responsibility, bringing maximum value to the Cardano community, and helping build a transparent and fair decentralized investment fund management ecosystem.

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

Functional Specification Analysis and Development Preparation (1 Month)

A. Milestone Outputs:

Detailed Requirement Analysis and Functional Specification for Each Module in Adatrust: Identify core functionalities (fund creation, share management, expense management, governance, and voting). Provide technical specifications for each smart contract that needs to be developed.

Research Necessary Technologies: Select suitable libraries, tools, and frameworks to develop on the Cardano platform (e.g., Plutus, Aiken, Marlowe, Mesh.js).

Prepare Development Environment and Set Up Infrastructure: Set up the testing environment on the Cardano Testnet. Create multi-signature (multisig) wallets and admin accounts.

Build the Team and Assign Roles: Establish the development team with specific job roles and precise time allocation.

B. Acceptance Criteria:

Completion of detailed functional specification documentation for all planned features.

Successful setup of the testing environment on Testnet, with administrative wallets interacting with Testnet.

Clear role assignments and confirmed full participation of the team members.

C. Evidence of Milestone Completion:

Detailed Specification Document: Describes all functional requirements, business processes, and system architecture of Adatrust.

Team Allocation Chart: Defines the roles, responsibilities, and work plan for each team member.

User Interface (UI/UX) Design and User Experience (1 Month)

A. Milestone Outputs:

Complete UI/UX Design of Adatrust dApp for the following features:

Dashboard: Displays information about funds, members, and investment status.

Fund Creation Interface: Allows users to enter information for creating a new investment fund.

Member Management Interface: Manages the member list and individual shares.

Voting Interface: Designs screens for proposal creation, viewing, and conducting governance votes.

Design Icons, Colors, and UI/UX Layout to meet standards ensuring consistency and user-friendliness.

Create a Prototype and Design Documentation for Adatrust dApp.

B. Acceptance Criteria:

User interface is fully designed for all planned features, including dashboards, forms, and interactive screens.

Clickable Prototype to present to stakeholders.

Ensures the design meets all standards of UI/UX and usability.

C. Evidence of Milestone Completion:

UI/UX Design Documentation: Includes wireframes, detailed sketches, and screen designs.

Prototype Link: Access to an interactive prototype (on Figma or similar design tools).

Core Smart Contract Development and Basic dApp Features (2 Months)

A. Milestone Outputs:

Develop Core Smart Contracts for Adatrust, including:

Fund Management Contract: Supports fund creation, share management, and profit distribution.

Multisig Contract: Enables transaction approval based on the required number of signatures.

Share Management and Profit Distribution Contract.

Integrate These Smart Contracts into the dApp User Interface.

Deploy Contracts on Cardano Testnet and conduct unit testing and integration testing.

B. Acceptance Criteria:

Smart contracts function correctly on the Testnet with all features, such as fund creation, member management, spending requests, and transaction approval.

Full Integration of contracts into the dApp, ensuring interaction between the dApp and contracts.

Achieve a minimum 80% success rate in test scenarios.

C. Evidence of Milestone Completion:

Demo Video: Shows the process of fund creation, adding members, and share distribution on Testnet.

GitHub Source Link: Contains smart contract code along with testing documentation.

Testing Report: Details the results of smart contract and dApp integration testing on Testnet.

On-Chain Governance and Voting System Integration (Month 2)

A. Milestone Outputs:

Integrate Governance and Voting Functionality into the dApp. Implement proposal creation, voting system, and vote validation.

Optimize User Interface to display voting processes and update status in real-time.

B. Acceptance Criteria:

Voting features function stably, and results are accurately recorded on the blockchain.

No significant security vulnerabilities after security testing.

Voting results are displayed accurately on the dApp and updated in real-time.

C. Evidence of Milestone Completion:

Demo Video: Illustrates the proposal creation, voting process, and result display on the dApp.

GitHub Link: Contains the smart contract source code and documents related to the voting functionality.

Testing Report: Details the results of security and functionality testing.

Real-World Testing on Mainnet and Official Launch (1 Month)

A. Milestone Outputs:

Deploy the dApp and Smart Contracts on Mainnet with a group of trial funds.

Collect User Feedback and make adjustments based on the gathered results.

Officially Launch the Platform with full functionality.

B. Acceptance Criteria:

The dApp functions stably on Mainnet.

Adjustments Made and issues resolved as they arise.

C. Evidence of Milestone Completion:

Testing and User Feedback Report: Detailed records of the testing process and collected results.

Introduction and Demo Video: Demonstrates the full functionality and operation of the platform on Mainnet.

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

Below are the key personnel involved in the development of ADATrust. During the project, additional suitable members will be recruited based on project requirements and progress.

1.Nguyen Viet Thanh

Position: Project Manager

Experience: CEO of Vtechcom, holding a Bachelor's degree in Business Administration (E-commerce) and an Information Technology Engineer in Vietnam. Over 10 years of experience managing software outsourcing projects. Extensive knowledge of Agile/Scrum and Waterfall project management methods, as well as requirement analysis, planning, team management, financial management, and change management in software projects.

Role in the project: Responsible for planning, including team organization, and managing progress and quality of project functionalities.

LinkedIn: https://www.linkedin.com/in/nguyenvietthanh/ | https://vtechcom.org/

2.Nguyen Anh Tuan

Position: Programmer Manager

Experience: Project Development Manager at ITSA, an IT solutions provider with over 15 years of experience. Expertise in blockchain application development, CRM management, mobile app development, and website design. Skilled in consulting and deploying flexible, secure blockchain systems and process optimization software solutions for corporate clients. A dedicated expert in delivering effective and innovative technology solutions.

LinkedIn: https://www.linkedin.com/in/nguyen-tuan-38147a292/

3.Pham Van Hai

Position: Backend, Blockchain Developer

Experience: Developer with over 3 years of deep experience in Vue.js, Nuxt 3, TypeScript, and JavaScript. Experience with backend frameworks such as NestJS and ExpressJS, as well as UI development with Tailwind CSS and other front-end technologies. Currently a Frontend Web Developer at tabtab.me, an AI-powered real estate platform. Holds a degree in Thermal Engineering from Hanoi University of Science and Technology.

LinkedIn: https://www.linkedin.com/in/phamhai99/

4.Nguyen Van Thang

Position: Frontend Developer

Experience: Software development expert with 5 years of experience in Node.js backend development and mobile app development. Previously a full-time Mobile Developer at Viettel Post, BnK Solution, and Heligate. Proficient in JavaScript, React Native, Node.js, C#, and DevOps.

LinkedIn: https://www.linkedin.com/in/thang-nguyen-b396171a9/

5.Duong Thanh Hieu

Position: Backend Developer, Blockchain Developer

Experience: React Native developer with over 5 years of experience. Previously worked at Sotatek and Famtech Global, developing mobile apps with React Native and ReactJS. Holds a background in Information Technology from the University of Engineering and Technology - Vietnam National University, Hanoi. Strong communication, project management, and high-quality software development skills.

LinkedIn: https://www.linkedin.com/in/hiuudt/

6.Dang Xuan Hoang

Position: UI/UX Designer

Experience: Over 3 years of experience in UX/UI design for mobile apps and games, specializing in user experience design for dApps. Proficient in UX/UI design, prototyping, user experience research, and interactive interface design.

LinkedIn: https://www.linkedin.com/in/dangxuanhoang/

7.Dao Van Dong

Position: Backend Developer

Experience: A software engineer specializing in mobile application development with years of experience at major technology companies such as Sotatek, Viettel Postek, and GEM Global. Skilled in various cross-platform development technologies like iOS/Swift, React Native, Java/Android, and Flutter. Dong has the ability to build complex solutions, optimize code, and deploy custom SDKs for mobile projects. He also has experience in technical process management, UI development, and system integration.

LinkedIn: https://www.linkedin.com/in/daomydong1995/

8.Le Thi Hue

Position: QA/QC Engineer

Experience: Over 5 years in software testing, particularly in software and mobile app testing. Extensive experience in functional testing, test case creation, product quality assurance, and security testing. Currently a QA/QC Engineer for the Travala project.

Other personnel will be recruited as needed to supplement project resources.

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

To execute the ADATrust project, below is a detailed cost estimate table by category and phase, ensuring that every element in the plan is reflected in the budget. We will mobilize a professional team including:

1 Project Manager

2 Backend Developers

1 Frontend Developer

2 Blockchain Engineers

1 UI/UX Designer

1 Quality Assurance (QA) Specialist

1 Documentation Writer & Community Manager

The current average hourly rate globally ranges from $75 to $200 USD/hour or higher, depending on expertise and reputation (citing statistics from reputable job websites like LinkedIn Salary, Glassdoor, Payscale, etc.).

Our company is fortunate to operate in Vietnam, where the cost of living is lower compared to other countries, allowing us to apply an average blockchain industry rate in Vietnam of about $40 - $100/hour, equivalent to 115 ADA - 285 ADA/hour (1 ADA = $0.35), depending on the position, while still ensuring high-quality work. The breakdown of projected time and costs for each department is as follows:

I. Personnel Costs (exchange rate of 1 ADA = $0.35):

Project Manager

Working hours: 150 hours

Cost: 150 hours x 150 ADA/hour = 22,500 ADA

Backend Developers

Working hours per person: 200 hours

Total hours: 400 hours

Cost: 400 hours x 150 ADA/hour = 60,000 ADA

Frontend Developer

Working hours: 150 hours

Cost: 150 hours x 150 ADA/hour = 22,500 ADA

Blockchain Engineers

Working hours per person: 150 hours

Total hours: 150 hours

Cost: 150 hours x 200 ADA/hour = 30,000 ADA

UI/UX Designer, System Architect

Working hours: 150 hours

Cost: 150 hours x 95 ADA/hour = 14,250 ADA

QA Specialist

Working hours: 150 hours

Cost: 150 hours x 150 ADA/hour = 22,500 ADA

Documentation Writer & Community Manager

Working hours: 100 hours

Cost: 100 hours x 95 ADA/hour = 9,500 ADA

Total Personnel Costs: 187,750 ADA

II. Third-Party Service Costs

Server Infrastructure Rental for Testing and Maintenance during 6-Month Development: 5,000 ADA

Software Licenses and Development Tools: 2,000 ADA

Total Third-Party Service Costs: 7,000 ADA

III. Total Estimated Project Cost

Total Cost = ∑ Personnel + ∑ Third-Party Services

T = 187,750 + 7,000 = 194,750 ADA

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

1.Reasonable Costs Compared to Global Average Salaries

Hourly Rates in Vietnam:

Blockchain Engineers, Average salary ranges from $40 to $100/hour, equivalent to 115 ADA

Other Positions (Backend Developer, Frontend Developer, Project Manager, UI/UX Designer, QA Specialist): Average salaries range from $30 to $65/hour, equivalent to 85 ADA

In this project, we applied salaries within this range, ensuring compliance with market rates while maintaining quality:

Project Manager: 150 ADA/hour

Backend Developer: 150 ADA/hour

Frontend Developer: 150 ADA/hour

Blockchain Engineer: 200 ADA/hour

UI/UX Designer, System Architect: 95 ADA/hour

QA Specialist: 150 ADA/hour

Documentation Writer & Community Manager: 95 ADA/hour

These costs reflect the market value in Vietnam, where living costs are lower compared to developed countries, optimizing the budget while ensuring quality.

2.Cost Effectiveness and Budget Management

We commit to a reasonable and transparent allocation of costs, including:

High-Quality Personnel with Appropriate Salaries.

Third-Party Service Costs that only include essential items like server infrastructure and software licenses.

Our company has experience managing funds from previous projects, ensuring effective and responsible use of resources.

3.Supporting Evidence for Cost Reasonableness

All cost data is referenced from reputable sources: Market salaries were compiled from trusted job sites like LinkedIn Salary, Glassdoor.com, Payscale, vietnamworks.com, etc., showing that the proposed salaries are reasonable.

These rates were carefully considered when compared to international costs: Compared to the international rates for blockchain engineers ($75 - $200/hour), personnel costs in Vietnam are lower, helping save the budget without compromising quality.

4.Investment Benefits for the Long-Term Growth of the Cardano Ecosystem

Promote the Development of Decentralized Investment Funds and DAOs: Adatrust will provide an automated and transparent investment fund management solution, making it easier for businesses, organizations, and communities to create decentralized investment funds (DeFi Funds) on Cardano. This will generate new opportunities to attract more capital and users to the ecosystem.

Set Standards for Financial Management dApps on Cardano: Adatrust uses Cardano's core technologies like multi-signature, Timelock scripts, and on-chain metadata, creating a standard model for other DeFi applications on Cardano, thereby enhancing Cardano's credibility and competitiveness in decentralized finance.

Motivate Community Participation: By designing Adatrust as an open-source project, the Cardano developer community will have the opportunity to learn and contribute to the project, driving the growth of the open-source ecosystem. This not only helps reduce long-term development costs but also fosters a strong developer community around DeFi products on Cardano.

Thus, the costs of the Adatrust project are not just an investment in building a DeFi product but also a long-term investment in the Cardano ecosystem, providing a transparent, decentralized, and secure platform for investment funds and DAOs. With the goal of enhancing the standards and applicability of Cardano in decentralized finance, Adatrust will bring great value and long-term benefits to the community and users of the Cardano ecosystem. We hope to receive community support to help us develop the project and contribute to ecosystem growth.