Equb Reinvented: Leveraging Cardano for Transparent and Secure Community Savings in Ethiopia

[GENERAL] Name and surname of main applicant

Dawit Wujra

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

Individual

[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

No

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

This project integrates Ethiopia’s traditional savings system with the Cardano blockchain using ADA for transactions promoting transparency and greater ADA adoption in real world use cases.

[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?

No

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

We will ensure the security and privacy of sensitive financial data and users’ personal information. While core components of the platform will follow open-source best practices, the privacy of user transactions necessitates restrictions on full open-sourcing.

[METADATA] Horizons

Financial Services

[SOLUTION] Please describe your proposed solution

Traditional community savings groups, known as Equb, are a longstanding part of Ethiopian culture. These groups allow people to save collectively, but current systems lack transparency, are prone to inefficiencies, and often depend on manual trust-based processes. There is a growing need to digitize and modernize these systems while retaining their community-driven nature.

This project will significantly contribute to the broader adoption and utility of ADA by showcasing its power in addressing real-world humanitarian needs. It will position Cardano as a leader in blockchain-based philanthropic solutions, highlighting the advantages of transparency, decentralization, and efficiency. By integrating blockchain technology into the aid sector, the project will inspire future initiatives and help grow the Cardano ecosystem.

In the long term, this initiative could be expanded to cover other regions facing humanitarian crises, creating a scalable model for blockchain-driven social impact worldwide.

Solution:

It is Blockchain-powered Community Savings Groups aims to digitize these traditional savings systems using the Cardano blockchain. The platform will facilitate Equb transactions in ADA, enabling transparent, secure, and tamper-proof savings. Smart contracts will automate contributions, distributions, and withdrawals based on pre-agreed rules, eliminating the need for manual management and ensuring trustless operations.

Through Equb, participants will be able to:

• Create or join a group: Equb members will pool their funds through ADA payments.
• Automated distribution: Smart contracts will govern the distribution of pooled funds to members.
• Transparent tracking: Every transaction, from contributions to withdrawals, will be transparent, trackable, and recorded on the blockchain.

By leveraging the Cardano blockchain, this project promotes ADA usage, introduces blockchain technology to a traditionally underserved community, and addresses the need for secure, transparent financial inclusion.

Target Stakeholders:

• Equb Participants: Individuals who are already part of traditional Equb savings groups, or those looking for more secure and transparent savings options.

• Microfinance Institutions: Organizations that work closely with community savings groups will benefit from streamlined processes and improved financial literacy.

• Cardano Enthusiasts: Individuals and groups within the Cardano ecosystem interested in promoting ADA as a medium for everyday transactions will support the project for its potential to increase ADA adoption.

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

Who Will Benefit and Why Is This Important for Cardano?

• Equb Participants: Traditional Equb participants will enjoy improved financial security, transparency, and the added efficiency of digital transactions, empowering those without access to formal banking systems.

• Cardano Ecosystem: The project will boost ADA utility by introducing it to a vast number of users in Ethiopia, helping position Cardano as a leading blockchain for financial inclusion in emerging markets.

Impact on the Cardano Community:

• Increased ADA Utility: By facilitating savings and transactions in ADA, this project increases everyday usage of Cardano’s native token, driving liquidity and adoption.

• Real-World Adoption: The integration of blockchain in traditional systems will demonstrate how Cardano can be applied in non-tech-savvy regions, highlighting its potential for scalability and widespread use.

• Community Engagement: Equb will engage local communities, allowing them to participate in a global blockchain ecosystem, which will further empower the Cardano network through global engagement.

How We Will Prove Our Impact:

• Transaction Volume:
• ADA transactions processed through the platform will be tracked to assess the project’s impact on blockchain adoption and economic activity.

• Savings Group Creation:
• The number of new Equb groups formed and successfully completing their savings cycles will be a key indicator of the platform’s success.

• User Growth:
• The total number of participants who join the platform, both new Equb members and existing groups transitioning to the blockchain, will measure community engagement.

• Community Feedback:
• Regular surveys will capture participant feedback on the platform’s usability and how well it serves their needs for transparent savings.

[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?

To be completedThe team brings a diverse set of skills that align well with the project's objectives, including expertise in blockchain development, smart contract programming, software development, project management, and marketing. The project will harness the capabilities of the Cardano blockchain, utilizing its scalability features to deliver high-performance and energy-efficient transaction processing. Cardano's strong blockchain architecture and smart contract functionality make it an ideal platform for the project, with its scalability and low transaction costs providing significant efficiency benefits.

The budget for the project is well-planned, with a clear distribution of funds for development, testing, marketing, and ongoing support, ensuring that every aspect of the project is adequately funded. To address potential risks such as technical setbacks, regulatory challenges, and market competition, the team has developed proactive mitigation strategies. Additionally, they have prepared contingency plans that include backup development resources and alternative funding options to maintain steady progress if needed.

What Makes this project Unique:

• Cultural Integration with Modern Technology: Equb modernizes a longstanding tradition in Ethiopia by blending cultural practices with cutting-edge blockchain technology. This innovation promotes financial inclusion without disrupting community values.

• ADA Transactions and Utility: All payments will be processed using ADA, promoting widespread adoption and on-chain activity, directly benefiting the Cardano ecosystem.

• Trustless Automation: Using smart contracts, contributions and payouts are automated, reducing the need for manual intervention and trust-based disputes.

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

Planning & Research (Months 1):

Milestone Outputs

• Finalize platform architecture and gather user requirements from Equb participants and microfinance partners.
• Research local regulatory requirements and cultural sensitivities.

Deliverables

• Detailed data of user needs and preferences 

Acceptance Criteria

• Compiled data of measured and analyzed user needs and feedback 
• 
  

Backend and Smart Contract Development (Months 2-3):

Milestone Outputs

• Develop the smart contract system that automates payments, contribution cycles, and withdrawals.
• Set up user authentication for Equb participants and wallet integrations for ADA transactions.

Deliverables

• First stage of the backend and Smart contracts 

Acceptance Criteria

• A functioning backend and smart contract 

Frontend Development & UI/UX Design (Months 3-4):

Milestone Outputs

• Build an intuitive web and mobile interface that allows users to create and manage Equb groups, contribute ADA, and track savings cycles.

Deliverables

• Web and mobile-friendly UI/UX to ensure accessibility for all users.

Acceptance Criteria

• Functional frontend interface with features such as auction, sales and bidding linked with the backend
• URLs for the demo version of the backend

Alpha Testing (Month 5):

Milestone Outputs

• Launch the platform for a select group of users to test key functionalities, collect feedback, and resolve any issues or bugs.

Deliverables

• Data from the stakeholders for further improvement and to be analyzed

Acceptance Criteria

• Alpha release exclusively for testers
• A structure and statistical data of testers 
• List of fixed bugs during alpha testing

Beta Testing and Final Rollout (Month 6):

• Broaden testing, optimizing the user experience for wider adoption.
• Finalize and release the platform publicly with initial partner groups and promotion.

Deliverables

• Promote and operate the platform 

Acceptance Criteria

• Final output submission
• Report of early user engagement and transaction volume

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

Dawit Wujra

Project Leader 

Bachelor in Architecture and Urban planning 

Yeabsira Abebe

Fullstack developer 

BSC in software engineering 

https://drive.google.com/file/d/1qMDUAicpqhvLqajA7AIFeuZDs4J7Pgi4/view?usp=drive_link

https://www.linkedin.com/in/yeabsira-abebe-b1705723b/

Dagim Tizazu

Fullstack developer 

BSC in software engineering 

https://my-portfolio-two-tau-95.vercel.app/ 

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

Budget Breakdown:

Development Costs:

• Backend Development and Smart Contracts: 8,000 ADA
• Frontend Development and UI/UX Design: 7,500 ADA
• Testing and Security Audits: 3,000 ADA

Marketing and Community Outreach:

• Digital Marketing and Promotions: 8,000 ADA
• Partnership Development with Galleries and Firms: 5,500 ADA

Legal and Compliance Costs:

• Legal Consultations for Regulatory Compliance: 7,000 ADA

Operational and Maintenance Costs:

• Ongoing Platform Maintenance and Customer Support: 9,000 ADA

             Contingency and Miscellaneous Expenses: 5,000 ADA

Total: 53,000 ADA

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

The Equb project is an excellent onchain entry point for novel uses of ADA as users will have their ADA spent in a real world context, increasing the volume of transactions on the network, and growing the block chain ecosystem in Ethiopia. This project integrates the traditional systems with blockchain technology to offer a cost-efficient and scalable model for financial inclusion with long term benefits to the Cardano community.