Cardano AI Oracle: Real-World Data On-Chain

[Proposal setup] Proposal title

Please provide your proposal title

Cardano AI Oracle: Real-World Data On-Chain

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

95000

[Proposal Summary] Time

Please specify how many months you expect your project to last

8

[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 lacks AI-powered oracles to process unstructured real-world data (weather, IoT, sentiment), limiting DeFi, insurance, and DAO use cases that need intelligent, verifiable insights.

[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

Our project outputs will be open source throughout the entire lifecycle of the project. We are committed to fostering collaboration, transparency, and innovation within the Cardano community by making our codebase accessible to all interested parties.

[Theme Selection] Theme

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

Oracles

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).

Unlike existing oracles that deliver raw data (mainly crypto prices), our solution provides AI-processed insights from unstructured data such as weather, IoT, or sentiment. This is the first Cardano-native oracle to combine AI pipelines with verifiability methods like ZK proofs, enabling new transaction types such as automated insurance payouts, sentiment-driven lending, and DAO governance triggers. No prior Catalyst project has delivered an AI-driven oracle MVP for Cardano.

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

Our MVP will demonstrate a working AI-powered oracle on Cardano testnet. It will process weather and sentiment data, convert it into verifiable on-chain events, and trigger smart contract actions (e.g., micro-insurance payout, DAO decision). A public demo dApp with open API access will be hosted, along with a GitHub repository containing the code and documentation, enabling developers and the community to test and integrate the oracle into their own projects.

Describe realistic measures of success, ideally with on-chain metrics.

Success will be measured by live testnet transactions triggered by AI-oracle data, such as automated insurance payouts or DAO votes. At least 2 demo dApps will integrate the oracle (insurance + governance). On-chain metrics include number of oracle-fed transactions, number of smart contracts consuming oracle data, and API usage statistics. Community adoption will be tracked via GitHub stars, forks, and developer feedback.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

We will build an AI-powered Oracle MVP for Cardano that makes it simple for smart contracts to use real-world data. Instead of raw feeds, the oracle will process data sources like weather updates, IoT sensor data, or social media sentiment with lightweight AI models, then provide structured outputs that contracts can directly use. For example, the oracle could detect rainfall above a threshold and automatically trigger an insurance payout, or measure community sentiment and inform DAO governance decisions.

The MVP will first run on Cardano testnet and connect to two demo dApps:

A micro-insurance prototype that uses weather data to trigger payouts.

A DAO governance demo that reacts to sentiment scores.

All components — oracle service, smart contracts, and API — will be open-source, with documentation so developers can test, build on top, and integrate into their own dApps. This approach shows clear on-chain transactions, delivers a working prototype, and makes it easy to expand to other data sources in the future.

[Your Project and Solution] Impact

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

Our AI-powered Oracle MVP will expand what developers can build on Cardano by making real-world data easy and reliable to use in smart contracts. This creates immediate benefits for the community:

New dApp possibilities – Developers can build use cases that were not possible before, such as automated insurance, sentiment-based lending, and dynamic DAO governance.

More on-chain activity – By triggering smart contract actions with real-world events, the project will generate real transactions, fees, and user engagement on Cardano.

Open-source tools – The oracle, smart contract libraries, and API will be released publicly, giving the community reusable components to accelerate their own projects.

Ecosystem leadership – By being the first AI-driven oracle on Cardano, the project positions the ecosystem as a pioneer in combining AI + blockchain, attracting developers, researchers, and partners.

In short, the project lowers barriers for developers, creates new business models, and drives adoption of Cardano as a platform for real-world impact.

[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?

Our team combines blockchain development (Plutus, Lucid, smart contract design) with AI/ML expertise, giving us the technical foundation to deliver both the oracle infrastructure and AI integration. We have prior experience building open-source Cardano tools and MVPs, which ensures transparency and accountability from day one.

To build trust, the project will be fully open-source under MIT license, with code hosted publicly on GitHub, progress tracked via issues, and monthly updates shared on the Cardano Forum and community calls.

We will validate feasibility in three ways:

Testnet deployment – Oracle and demo dApps will first run on Cardano testnet to prove they function in real blockchain conditions.

Demo integrations – Two clear use cases (insurance + DAO governance) will validate that the oracle’s outputs can trigger real smart contract actions.

Community feedback – Developers will be invited to test the API and contracts early, providing feedback that will guide improvements.

This transparent, iterative approach ensures feasibility is proven step by step, with measurable results visible to the Cardano community.

[Milestones] Project Milestones

Milestone Title

Research & Design

Milestone Outputs

A detailed system design document outlining the oracle’s architecture, AI data processing pipeline (weather + sentiment), and smart contract interaction model. A public GitHub repository will be created with an initial roadmap, project issues, and contribution guidelines.

Acceptance Criteria

The design document must clearly explain the oracle workflow, from real-world data sources to Cardano smart contract consumption. It will be internally reviewed, refined, and shared publicly to ensure feasibility is validated before coding starts.

Evidence of Completion

A GitHub repository containing the system design files, roadmap, and project documentation. A Catalyst community post or Medium blog will share the design, collect early developer feedback, and demonstrate transparent progress.

Delivery Month

1

Cost

15000

Progress

20 %

Milestone Title

Oracle Prototype Development

Milestone Outputs

A functional oracle prototype that ingests weather data and sentiment data, processes them with lightweight AI models, and transforms outputs into structured JSON that can be consumed by Cardano testnet contracts.

Acceptance Criteria

The prototype must run reliably on Cardano testnet, delivering at least two categories of real-world data. Contracts must be able to request and receive oracle outputs, with successful test transactions proving basic functionality.

Evidence of Completion

A testnet deployment of the oracle accessible via API, with transaction explorer links showing contracts consuming oracle data. Open-source prototype code in GitHub and a short demo video will be shared with the Cardano community.

Delivery Month

3

Cost

30000

Progress

50 %

Milestone Title

Smart Contract Integrations

Milestone Outputs

We will show how the oracle connects directly with Cardano smart contracts in a simple and practical way. The goal is to demonstrate that real-world data, once processed by the oracle, can be sent to the blockchain and accessed by contracts without extra steps. This will give developers a clear example of how to plug oracle data into their own projects.

Acceptance Criteria

The oracle must be able to pass data to Cardano smart contracts on testnet in a consistent and working setup. The connection should be reliable enough to prove that when new data is processed, it can be sent to a contract and trigger actions automatically. This will confirm that the oracle can function as a bridge between real-world data and smart contracts.

Evidence of Completion

We will provide open-source code and examples on GitHub that show how the oracle connects to contracts. A simple demo video will walk through the process of the oracle sending data to a smart contract on Cardano testnet, making it easy for anyone in the community to see and replicate the integration.

Delivery Month

5

Cost

30000

Progress

80 %

Milestone Title

Public Release & Documentation

Milestone Outputs

A full open-source release of the oracle MVP, including an accessible API, SDK, and smart contract templates. Documentation will include setup guides, tutorials, developer FAQs, and practical integration examples.

Acceptance Criteria

Independent developers must be able to follow the documentation and integrate the oracle into a basic testnet contract within one day. At least 5 community testers will validate usability and provide feedback on improvements.

Evidence of Completion

A published documentation website, GitHub release tags for the oracle MVP, and public testimonials from developers who tested the oracle. A Catalyst community update video and posts will confirm successful release and adoption.

Delivery Month

7

Cost

20000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Milestone 1 – Research & Design (₳15,000)

Covers planning, oracle architecture design, AI data pipeline outline, and initial GitHub setup. Includes team coordination, documentation, and early community updates.

Milestone 2 – Oracle Prototype Development (₳30,000)

Development of the oracle backend, AI model integration (weather + sentiment), and Cardano testnet deployment. Resources include developer time, infrastructure costs, and testing.

Milestone 3 – Smart Contract Connection (₳30,000)

Implementation of smart contract integration with the oracle, demonstrating real-world data passed on-chain. Includes contract development, integration testing, and refinement for stability.

Milestone 4 – Public Release & Documentation (₳20,000)

Final open-source release of the oracle MVP, API, and templates. Preparing full documentation, guides, tutorials, and running community testing sessions. Covers outreach and developer support.

[Final Pitch] Value for Money

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

The requested ₳95,000 represents strong value for the Cardano ecosystem because it delivers the first AI-powered oracle MVP, creating entirely new categories of dApps that depend on real-world data. Most of the budget (₳60,000) is focused on direct development of the oracle and its integration with smart contracts, ensuring funds go into building working technology.

The remaining budget covers essential design, documentation, and community testing, so the project is not only delivered but also usable by other developers. By releasing everything open-source, the investment produces reusable infrastructure and developer tools that will save future projects time and costs.

For less than ₳100k, the community gains a foundational oracle framework that unlocks use cases in insurance, governance, and DeFi. This positions Cardano ahead of competitors in combining AI and blockchain, making the spend high-impact, transparent, and beneficial long after the project ends.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes