No Witness - MACS coin selection algorithm for Evolution SKD

[Proposal setup] Proposal title

Please provide your proposal title

No Witness - MACS coin selection algorithm for Evolution SKD

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

100000

[Proposal Summary] Time

Please specify how many months you expect your project to last

5

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

Cardano developers lack access to advanced coin selection in evolution-sdk. Integrating MACS will solve UTxO inefficiencies and unlock optimal transaction building capabilities.

[Proposal Summary] Supporting Documentation

Supporting links

• https://ieeexplore.ieee.org/document/10411438
,
• https://github.com/no-witness-labs/evolution-sdk
,
• https://cardanofoundation.org/blog/macs-a-new-approach-to-multi-asset-coin-selection
,
• https://github.com/cardano-foundation/CIPs/tree/master/CIP-0002

[Proposal Summary] Project Dependencies

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

No

Describe any dependencies or write 'No dependencies'

No dependencies

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

License and Additional Information

Fully open source MIT license from day one

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal

UTXO

[Campaign Category] Category Questions

Mention your open source license and describe your open source license rationale.

This project will be fully open source under MIT license from day one. We believe all developer tooling should be open source which helps teams build new products, but also improve and develop tooling by collaboration

How do you make sure your source code is accessible to the public from project start, and people are informed?

Our project will be open source from day on at:

https://github.com/no-witness-labs

We will also be sharing all development and updates regularly on our X account:

https://x.com/nowitnesslabs

How will you provide high quality documentation?

Jonathan, lead developer is taking all the lessons learned from creating Lucid Evolution library and applying them to this project to have high quality documentation having in mind developers transitioning to Cardano as well as those that have been building here for years.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

MACS (Multi-Asset Coin Selection) is a research algorithm developed by the Cardano Foundation that addresses key limitations in UTxO-based blockchain coin selection.

Unlike traditional algorithms that focus primarily on ADA optimization, MACS considers transaction fees, UTxO pool size, transaction age, and privacy while maintaining optimal distribution of UTxO inputs and preventing long-term UTxO accumulation Cardano Foundation https://ieeexplore.ieee.org/document/10411438 .

The algorithm uses sophisticated scoring mechanisms to balance multiple objectives simultaneously, making it particularly effective for complex multi-asset transactions.

Our solution integrates this Multi-Asset Coin Selection (MACS) algorithm into evolution-sdk, creating the first production implementation of this breakthrough research alongside established CIP-0002 standards. Currently, evolution-sdk developers are limited to basic coin selection methods that don't optimize for multi-asset transactions, leading to higher fees and suboptimal UTxO management.

We will implement a modular coin selection architecture that allows developers to choose the optimal algorithm per transaction type. The system includes four key selection strategies: MACS algorithm for advanced multi-asset optimization using sophisticated scoring mechanisms, CIP-0002 compliant Largest-First and Random-Improve algorithms for standards compatibility, asset-specific selection for targeted token management, and random selection for testing and experimental scenarios.

The technical approach involves extending evolution-sdk's transaction builder with a clean API that accepts algorithm parameters. Developers can specify their preferred coin selection strategy when building transactions, enabling dynamic optimization based on transaction characteristics. For DeFi applications requiring cost efficiency, MACS provides superior multi-asset UTxO selection. For applications needing CIP-0002 compliance, standard algorithms remain available. Gaming applications can leverage asset-specific selection for targeted NFT or token management.

This addresses the core problem by providing evolution-sdk developers with advanced coin selection capabilities previously unavailable in production SDKs. The modular design ensures backward compatibility while enabling cutting-edge optimization. By bridging academic MACS research with practical developer tools, we unlock significant fee savings and UTxO efficiency improvements for the entire Cardano ecosystem. The solution transforms evolution-sdk into the most comprehensive transaction building toolkit available, giving developers the flexibility to optimize coin selection based on their specific use case requirements rather than being constrained by one-size-fits-all approaches.

[Your Project and Solution] Impact

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

This project creates real positive impact for the Cardano community by turning theoretical research into practical tools that actually help developers, users, and everyone else in the ecosystem.

Implementing MACS alongside other coin selection algorithms in evolution-sdk tackles a genuine infrastructure gap that affects pretty much everyone building on Cardano.

For developers, this means finally getting sophisticated transaction optimization tools that just haven't existed in production before. DeFi teams can leverage MACS optimization for tricky multi-asset operations, potentially slashing user costs and making their protocols way more competitive. Gaming and NFT projects get asset-specific selection that lets them handle tokens exactly how they need to. Plus, all developers still have their trusty CIP-0002 algorithms while gaining some seriously powerful new optimization options.

Users feel the impact through cheaper transaction costs and smoother app performance across the board. As developers start using smarter coin selection strategies, regular users get lower fees for multi-asset transactions and wallets that just work better. This cost reduction makes Cardano apps way more attractive and accessible to everyday people.

The ecosystem-wide benefits include actually putting Cardano Foundation research to good use, making sure academic breakthroughs become real-world improvements instead of just sitting in research papers. The open-source approach means other dev teams can learn from and build on this work, lifting the quality of all Cardano tooling. The modular setup gives everyone a solid foundation for integrating whatever cool research comes next.

[Your Project and Solution] Capabilities & 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?

No Witness Labs is founded by seasoned blockchain developers with a proven track record of delivering high-quality, impactful open-source tools and protocols in the Cardano ecosystem.

Our co-founder, Jonathan Rodriguez, is the creator and lead maintainer of Evolution SDK—the next generation of the widely adopted Lucid—which has become a cornerstone for off-chain transaction building on Cardano. His work has enabled countless developers to rapidly build, test, and deploy Cardano dApps with improved developer experience and reliability.

Our team collectively has extensive experience building both open-source and production-grade blockchain solutions. Members have contributed to many ecosystem projects and several protocol-level designs including cross-chain bridges, staking systems, and Layer 2 frameworks.

No.Witness Labs operate with transparency and accountability as core principles and all significant of our work are developed open-source, ensuring community visibility, code review, and independent audit potential.

Our deep experience, combined with a proven history of delivering developer-focused infrastructure, ensures that No Witness Labs can execute this project with the highest standards of trust, transparency, and technical excellence.

[Milestones] Project Milestones

Milestone Title

Foundation & MACS Implementation

Milestone Outputs

1. MACS integration in evolution-sdk: multi-asset scoring, UTxO selection logic, deterministic/seeded behavior, and parameter config
2. Modular API surface to select algorithm per transaction (MACS, CIP-0002, asset-specific, random) with strong TypeScript types

Acceptance Criteria

1. All MACS integration tests pass in CI
2. Outputs stable across runs with the same seed and parameters
3. API allows runtime selection of coin selection strategy without breaking existing evolution-sdk builders

Evidence of Completion

1. Links to GitHub commits implementing MACS with v0.1.0 tag.
2. Documentation and example code demonstrating MACS selection end-to-end

Delivery Month

2

Cost

30000

Progress

20 %

Milestone Title

Algorithm Expansion & Testing

Milestone Outputs

1. Add CIP-0002 algorithms (Largest-First, Random-Improve)
2. Benchmark comparable metrics (inputs used, fees, tx size, UTxO fragmentation) across algorithms.
3. Extended test suite covering edge cases (multi-asset bundles, min-ADA, change composition, large UTxO sets).

Acceptance Criteria

1. CIP-0002 implementations match reference behavior
2. Benchmarks show repeatable results
3. v0.2.0 release with 3 runnable examples comparing MACS vs CIP-0002 vs asset-specific on provided datasets.

Evidence of Completion

1. Commit link for new algorithms, tests, and benchmark scripts
2. v0.2.0 tag
3. Published benchmark report
4. Example run logs and sample CSV/JSON

Delivery Month

3

Cost

30000

Progress

40 %

Milestone Title

CLI Tool & Documentation

Milestone Outputs

1. CLI tool to run selections against user UTxOs, generate reports, and compare strategies.
2. Comprehensive documentation: API reference, algorithm guides, parameter tuning, and integration tutorials.
3. Integration examples: drop-in SDK usage in common app types (DeFi swap, NFT mint, payment), each with scripts/tests.

Acceptance Criteria

1. CLI produces human-readable and machine-readable reports without erorrs
2. Docs site live with comprehensive documentation icluding Getting Started, Choosing an Algorithm, and Benchmarking Your UTxOs
3. v0.3.0 release

Evidence of Completion

1. Links to npm package and GitHub v0.3.0 tag
2. Docs URL with screenshots of guides and API pages
3. Short demo video showirg unning the CLI on a sample UTxO set and interpreting the report.

Delivery Month

4

Cost

30000

Progress

80 %

Milestone Title

Project Closeout & Analysis

Milestone Outputs

1. Performance analysis report comparing MACS, CIP-0002, asset-specific, and random across scenarios metrics.
2. Final SDK release v1.0.0 (npm) with signed artifacts, stable APIs
3. Closeout report with lessons learned and guides
4. Video closeout report with guide

Acceptance Criteria

1. Report quantifies fee reduction, input count, and UTxO efficiency by scenario, including recommendations per use case.
2. All examples work out-of-the-box
3. CI and release signing green.
4. Project closout report can be found at https://github.com/no-witness-labs

Evidence of Completion

1. Links to final report can be found at https://github.com/no-witness-labs
2. npm package link, GitHub v1.0.0 release with release notes.
3. URLs to docs site

Delivery Month

5

Cost

10000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

The total budget for the proposed project is estimated at 105.500 ADA, equivalent to 102.400 USD at the current ADA price of 0.97 USD. This plan is designed to efficiently deliver the project within 4 months, ensuring quality while addressing all cost considerations.

Senior Developer:

Hiring two developers is essential for the successful completion of the project within the specified timeframe. Their expertise will be crucial for delivering high-quality project.

Senior developers' rate: Range from 80-120 USD per hour.

Estimated Total Cost in ADA (5 months):

80 USD/hour: For two developers working full-time (40 hours per week for 4 months), the total cost per developer would be 51,200 USD, equivalent to 52.780 ADA.

Thus, hiring two developers at the 80 USD/hour rate will collectively cost approximately 105.567 ADA over the full project duration.

However due to category cap of 100k ADA we will split 50.000 ADA per developer and deliver all of the work proposed.

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

Turning peer-reviewed research (MACS) into a production-grade, open source implementation inside evolution-sdk the ecosystem gets an implementation that any wallet, dApp, or SDK can consume.

Even modest, consistent optimizations from MACS (vs. basic CIP-0002 strategies) translate into:

• Lower average fees

• Smaller tx size in multi-asset flows (DEXs, NFT/Gaming, wallets)

• Better UTxO sets over time that is less fragmentation and better UX

We’re not just including MACS in Evoution SDK, we’re shipping a selection framework: MACS + CIP-0002 (Largest-First, Random-Improve) + asset-specific + random. That gives developers fine-grained control.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes