NuNet: Decentralized SPO Computing - Scaling&Expansion

[Proposal setup] Proposal title

Please provide your proposal title

NuNet: Decentralized SPO Computing - Scaling&Expansion

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

250000

[Proposal Summary] Time

Please specify how many months you expect your project to last

6

[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?

How to boost Cardano's decentralization and resilience? NuNet’s decentralized compute layer, proven with SPO deployments, needs broader adoption and stronger operational tooling and security.

[Proposal Summary] Supporting Documentation

Supporting links

• https://nunet.io/
,
• https://gitlab.com/nunet/device-management-service
,
• https://gitlab.com/nunet/cardano
,
• https://medium.com/nunet/how-nunet-will-help-cardano-stay-decentralized-5cd8ff36cd36
,
• https://www.linkedin.com/pulse/continuing-cardano-stake-pool-use-case-building-dms-v050-oliuf

[Proposal Summary] Project Dependencies

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

Yes

Describe any dependencies or write 'No dependencies'

Internal dependencies (existing NuNet technologies that will be augmented during the project) Core Infrastructure Layer The primary dependency is NuNet's device-management-service (DMS) protocol, which provides the foundational decentralized orchestration layer for compute resources distributed across globally available compute devices. DMS enables distributed task execution across a network of participating devices, handling resource discovery, allocation, and coordination in a trustless environment. For the Hydra payment implementation, this layer will be extended to support deployment of Hydra Heads via NuNet on decentralized hardware provided by community, multi-party payment provider roles and real-time settlement tracking. Secure Programming Framework The NuActor system is an integral part of device-management-service which delivers a specialised programming model designed for secure development of decentralised systems. NuActor framework provides isolation guarantees, message-passing semantics, and fault-tolerance mechanisms essential for distributed application reliability. The system abstracts the complexities of distributed state management while maintaining security properties across network boundaries. Cardano Stake Pool Operators (SPOs) Each SPO is an individual entity and some might join but drop out during the process due to a multitude of reasons (private, death, re-location etc.). NuNet will ensure consistency by having a solid backlog of SPOs interested in joining the pilot.

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

License and Additional Information

Most projects under https://gitlab.com/nunet are licensed with Apache 2.0 including the main platform Device Management Service at https://gitlab.com/nunet/device-management-service

[Theme Selection] Theme

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

Developer Tools

[Campaign Category] Category Questions

Describe your established collaborations.

NuNet has established multiple collaborations with key entities within and also outside of the Cardano ecosystem. We’ve established partnerships with a range of smaller datacenters, providing accessible infrastructure for efficient deployment and supporting SPO operations. Simultaneously, we’ve onboarded a growing network of stake pool operators (SPOs), relying on their expertise and commitment to the Cardano network. Through these collaborations, we’re actively working to refine the deployment platform based on practical feedback, building a robust and secure decentralized Cardano solution.

Describe funding commitments.

NuNet utilizes its own independent funding to build the decentralized computing platform which continues to be developed with more features, improvements and bug fixes. This additional funding will be used to ensure the adoption of the platform by onboarding more Compute Providers with stable hardware and attracting more Cardano Stake Pool Operators into the platform.

Describe your key performance metrics.

NuNet will provide metrics on usage of developed Decentralized SPO deployment expansion with the following KPIs:

• Amount of Compute onboarded during the project

• Number of SPOs running mainnet Cardano Stake Pools on NuNet Platform

• The amount of staked ADA on Stake Pools running on NuNet

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

This proposal focuses on strengthening Cardano by deploying and expanding the NuNet decentralized compute platform as a resilient foundation for SPO operations. By reducing reliance on centralized cloud providers, NuNet enables Cardano to evolve into a truly decentralized and censorship-resistant blockchain, with a globally distributed infrastructure that is both economically sustainable and technically robust.

The primary objective is to ensure the usefulness, accessibility, and resilience of the NuNet platform for SPOs and the broader Cardano ecosystem. To achieve this, we will invest in the development of new tools that enhance the operational efficiency of SPOs, enabling seamless adoption of decentralized infrastructure without compromising on performance or security. These tools will address pain points such as deployment complexity, cost management, monitoring, and usability, giving SPOs a straightforward pathway to run their stake pools on NuNet.

Strategic Partnerships & Cost Optimization

One of the key benefits for Cardano is the opportunity to reduce SPO operating costs. Today, many SPOs are dependent on major cloud providers, which dominate the market with high and relatively inflexible pricing. This centralization creates risks of censorship, single points of failure, and cost-driven SPO attrition. NuNet changes this dynamic by building partnerships with small, reliable data centers and independent compute providers, introducing real competition into the infrastructure layer. Early adopters will benefit from lower and more predictable costs, while the network as a whole gains from greater decentralization and diversity of hosting environments.

Security & Trustworthiness

Equally important is security. SPOs form the backbone of Cardano, and the infrastructure they run must be resilient against vulnerabilities and attacks. This proposal includes the design and implementation of enhanced security measures across the NuNet platform, protecting deployments and sensitive assets in decentralized environments. By doing so, we will not only increase trust in SPO deployments on NuNet, but also demonstrate how Cardano can serve as the foundation for secure, large-scale decentralized systems.

SPO Onboarding & Ecosystem Expansion

NuNet is already running a pilot SPO program, with more than 20 SPOs interested in early deployments. The next step is to expand onboarding efforts and provide structured support to ensure that SPOs of all sizes can participate. By working directly with SPO operators, we will create clear onboarding pathways, provide technical assistance, and build community-driven feedback loops. This ensures that adoption grows steadily while continuously improving platform usability and resilience.

Platform Enhancements for Cardano

For Cardano to fully benefit from NuNet, the platform itself must evolve. This proposal includes continuous improvements in scalability, performance, and usability. While the current platform requires a degree of technical expertise, we will invest in creating intuitive user interfaces, comprehensive documentation, and real-time monitoring dashboards. These enhancements will make NuNet accessible to a broader pool of SPOs, reducing barriers to entry and encouraging greater participation in decentralized node hosting.

Benefits for Cardano’s Future

The benefits to Cardano are substantial:

• Greater decentralization and resilience by distributing SPO infrastructure across diverse compute providers.
• Reduced costs of operation for SPOs, strengthening small and independent operators and enhancing stake pool diversity.
• Enhanced censorship resistance and robustness by reducing reliance on centralized cloud platforms vulnerable to political or market pressures.
• Strengthened security and trustworthiness of SPO deployments, safeguarding Cardano’s critical infrastructure.
• Long-term economic alignment through the eventual use of NTX (a Cardano native token) for compute payments, embedding NuNet—one of Cardano’s largest open-source projects—into the financial fabric of the ecosystem.

This multi-faceted approach, combining strategic data center partnerships, streamlined SPO onboarding, continuous platform improvements, and user-focused enhancements, will accelerate adoption and establish NuNet as a thriving decentralized Cardano node deployment platform. By investing in this initiative, Catalyst ensures that Cardano remains not only one of the most decentralized blockchains but also one of the most resilient, cost-efficient, and future-ready infrastructures in the world.

[Your Project and Solution] Impact

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

With this expansion work, NuNet will be able to onboard additional SPOs and compute providers to its platform and increase the decentralization of the Cardano ecosystem. Additionally, we anticipate a substantial increase in the accessibility and democratization of staking opportunities.

Currently, there are technical and financial barriers associated with setting up a stake pool using data centers from big tech providers. NuNet's decentralized platform should enable a broader range of individuals and organizations to engage in the Cardano network's core ecosystem.

This expanded participation will increase network security and resilience as more contributors validate transactions and participate in the maintenance of the integrity of the blockchain. Following on this, it should also result in greater competition amongst SPOs which result in increased performance and innovation within the Cardano network.

NuNet is currently running a pilot project where selected SPOs are deploying their relay and block producing nodes on decentralized hardware provided by NuNet.

NuNet, for this purpose is providing subsidized compute resources from reliable small compute providers.

NuNet is also in motion to expand the compute offering with a multitude of traditional and novel web3 compute providers.

The SPOs that have expressed written interest to join the pilot so far are:

HAMDA, BBHMM, TIPFS, ECP, PREEB, FLUID, PET♥, ADRIA, DOTAR, BETTR, TDSP, EMPL, PLKOZ, AFICA, 8BALL, PREEB, KTOP, SHA, ENVY, OTG, CARDS, SUDTI, ZAMBIA, SHAMROCK

The SPOs that have been onboarded, are already deployed and in the process of (or done) signing pilot contracts:

HAMDA, BBHMM, ENVY, KTOP, PORTO, CARDs, AFICA, FLUID

SPOs have an option to gain a new revenue model by participating as decentralized payment providers, managing liquidity, and securing settlement channels. This model aligns incentives for SPOs to contribute compute capacity, while also strengthening the reliability of Cardano infrastructure.

Payment providers are incentivized with additional yields, creating a self-reinforcing loop of liquidity, adoption, and decentralization. The project thereby broadens economic participation across the Cardano ecosystem, engaging SPOs, developers, liquidity providers, and compute users in building a global Web3 compute marketplace.

Beyond these immediate benefits, NuNet's platform is strategically positioned to drive wider adoption of Cardano itself. The ease of deployment, support for decentralized payment and compute infrastructure will accelerate the growth of Cardano's ecosystem, attracting new developers, businesses and users.

[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?

Illustration of Capacity:

Our organization comes with a history of successfully bringing intricate technology projects to fruition. The pillars of our success lie in our deep-rooted technical understanding, stringent project management practices, and an unwavering focus on transparency and responsibility.

Our team is populated with seasoned software engineers with excellent skills who have built a solid foundation for the NuNet platform that supports the deployment of any containerized job across a decentralized pool of compute infrastructure. This platform now supports deploying Cardano Nodes and, we are currently running the pilot program for Cardano Stake Pool deployment in collaboration with several SPOs.

NuNet is committed to Open Source Software development from the inception. Therefore, all our development and progress is available for public scrutiny at all times as well as open collaboration with the community. We actively invite and work with the community in regards to contribution, usage, work and testing of the platform codebase.

Link: https://gitlab.com/nunet

NuNet licencing policy:

https://docs.nunet.io/nunet-licensing-policy/

Openness and Responsibility:

We have established a robust framework to ensure openness and responsibility in the execution of the project and the management of finances:

1. Elaborate Budgeting: We present an exhaustive budget layout at the start of the project that details the fund allocation across various tasks. This leaves no room for ambiguity regarding the utilization of funds.
2. Periodic Reporting: Regular updates regarding the project and financial statements will be shared, offering complete transparency into the progression of the project and the use of funds.
3. External Auditing: We are open to audits conducted by independent third parties at regular intervals. This ensures responsibility and openness in our financial management.
4. Escrow Mechanisms: To further reassure proper use of funds, we can utilize an escrow service. This arrangement ensures that the project funds are held by a third party and released according to pre-set milestones. This provides an extra layer of assurance for the funds.
5. Payment Based on Milestones: Our payment structure is built around specific, agreed-upon milestones. This ensures that funds are released as we achieve these milestones. The completion of each milestone can be verified, ensuring you pay only for verifiable progress.

These measures reflect our commitment to openness, responsibility, and proper management of funds. We believe that these factors, along with our technical capabilities, make us an ideal choice to successfully execute this project.

We understand that not all steps we have implemented are valid for the Catalyst proposal but it demonstrates the internal working procedures we have in place.

Catalyst Experience

NuNet also has received the funding for proposals in Fund7 and Fund8. Both proposals have been delivered. Overall, the funds were spent as intended on the development which can be monitored on Gitlab with daily commits since the award.

https://gitlab.com/groups/nunet/-/milestones/19#tab-issues

https://gitlab.com/groups/nunet/-/milestones/20#tab-issues

Financial Stability:

As a 20+ strong team, we have independent funding to develop the core platform with a cash runway for at least 1-1.5 years. Cardano Catalyst proposals are used to extend the functionality and add features to the platform in order to enrich the possible use cases.

Risk analysis and mitigation:

Too few compute providers - If network doesn't contain enough compute providers available for running Cardano Nodes because of their substantial requirements for compute resources, a compensation structure will be implemented wherein the SPO pays a monthly rate of NTX to compute providers, similar to how they would pay for monthly access to cloud computing. Additionally, NuNet will provide a certain amount of its own hardware resources for the purpose of balancing the network and ensuring availability at all times.

[Milestones] Project Milestones

Milestone Title

Gather SPOs' needs and feedback from running pilot program to improve the platform's usability

Milestone Outputs

Improved UI and Organization management on NuNet Appliance that makes it straight forward for SPOs to deploy their Cardano relay and block producing Nodes, clear and concise documentation and easy onboarding guide/tutorial.

Acceptance Criteria

Upgraded platform features are implemented, tested live by at least 5 SPOs by only following the prepared documentation and guides. The results should not include process breaking bugs or result in inability for SPOs to produceblocks. This will ensure that wider adoption with more SPOs follows.

Evidence of Completion

Public repository containing all assets, documentation and examples in addition to test reports from SPOs.

Delivery Month

2

Cost

75000

Progress

20 %

Milestone Title

Onboard Compute Providers

Milestone Outputs

Partnerships with small data centers and onboarding compute providers to meet the compute demand from SPOs. Currently NuNet has at least 1-3 interested parties and plans to onboard additional reliable compute providers as well as web3 compute providers.

Acceptance Criteria

Easily available and reliable compute resources on the NuNet network for Cardano Stake Pool deployments. NuNet will ensure and reserve sufficient compute resources for the duration of the project for a target of 20 SPOs.

Evidence of Completion

Increase in available compute resource for SPOs and testing reports from SPOs. Development of a data center integration/controller module.

Delivery Month

3

Cost

75000

Progress

40 %

Milestone Title

Onboard Additional SPOs

Milestone Outputs

Support more SPOs to transition from running in centralized hardware to NuNet's decentralized computing platform. The goal is to reach 20 SPOs running on the NuNet decentralized protocol as soon as possible.

Acceptance Criteria

Increased number of SPOs running their Cardano Nodes on NuNet's decentralized infrastructure to the minimum of 10 SPOs and up to planned 20 SPOs. Depending on the achieved computing costs more SPOs could be onboarded.

Evidence of Completion

Test reports from more SPOs utilizing the platform. These should include uptime and blocks minted, as well as any bugs encountered.

Delivery Month

5

Cost

75000

Progress

80 %

Milestone Title

Documentation and Continual Support

Milestone Outputs

A well established onboarding mechanism for SPOs to deploy on decentralized infrastructure and documentation of all necessary steps. In addition empower Open Source developers and SPO community to provide mutual support for continuos scaling & expansion of the decentralized stake pool deployment infrastructure.

Acceptance Criteria

Support provided and continuing to be provided to newly joining Compute Providers and SPOs on a publicly accessible platform. The SPOs will receive a stable platform with sufficient documentation to be able to run on it independently.

Evidence of Completion

A self-sustaining online SPO community for mutual support in running Cardano Nodes on NuNet's decentralized network.

Delivery Month

6

Cost

25000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

The following budget breakdown provides an overview of the anticipated costs essential to delivering the expansion of the decentralized SPO computing project. This allocation supports every critical stage, including project management, coordination, software development and associated research of ecosystem technologies, ensuring that NuNet has the resources necessary to build a robust and production-ready system for the Cardano Stake Pool infrastructure.

Outlined in ADA, the budget is categorized to cover project management, IT development, system integration, compliance/security, and research. This structured approach ensures operational efficiency, seamless technical execution, and a strategic reserve for unforeseen requirements — setting a strong foundation for project success.

Milestone #1 Improve Platform Usability for SPOs

75,000 ADA / Resources & Skills Needed: Software engineers, QA testers, DevOps, test program design, feedback analysis, software development expertise

Milestone #2 Onboarding More Compute Providers

75,000 ADA / Resources & Skills Needed:, compute resource cost and outreach

Milestone #3 Onboarding More SPOs

75,000 ADA / Resources & Skills Needed: Community outreach, technical support, marketing, onboarding,

Milestone #4 Documentation and Community Creation

25,000 ADA / Resources & Skills Needed: Technical write up and documentation, tutorial and guide creation, community management

[Final Pitch] Value for Money

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

This project delivers exceptional value to the Cardano ecosystem by addressing a critical infrastructure gap in decentralized compute and payment settlement, building on the success of Phase 1 of NuNet’s decentralized SPO computing initiative (alyst.io/funds/7/a-i-and-singularitynet-a-5t-market/nunet-decentralized-spo-computingCatalyst reference). The Cardano network’s decentralization and resilience ultimately depend on reducing reliance on a small number of centralized cloud providers, which today host a significant portion of stake pool nodes. These providers offer convenience but create risks of censorship, vendor lock-in, price manipulation, and systemic vulnerability.

By leveraging NuNet’s decentralized compute layer, this proposal enables SPOs to deploy their block-producing and relay nodes on distributed, community-powered infrastructure. This not only enhances decentralization—by diversifying compute sources—but also boosts robustness and censorship resistance, since SPO operations will no longer be concentrated within a handful of cloud giants. In times of political pressure, technical outages, or cost spikes, SPOs running on NuNet will be far less exposed, improving the overall resilience of the Cardano network.

From an economic perspective, NuNet’s decentralized platform introduces healthy competition to the infrastructure layer, driving down costs for SPOs who today face high and often unpredictable fees from centralized cloud providers. By enabling SPOs to pay per-use via Hydra-based microtransactions, the platform further optimizes operational expenses. This reduced cost of operation translates directly into increased stake pool profitability, better sustainability for small and medium SPOs, and ultimately a healthier level of decentralization across Cardano.

Importantly, this project also brings direct value to Cardano’s token economy. Over time, payments for compute resources will be denominated in NTX, a native Cardano token, thereby anchoring the world’s largest open-source decentralized compute project directly into the Cardano ecosystem. This ensures that as NuNet grows across DePIN, AI, robotics, IoT, and smart manufacturing markets, Cardano becomes the financial settlement layer for global-scale machine-to-machine economies.

By combining SPO adoption, Hydra-powered scalability, and tokenized settlement, this project positions Cardano at the forefront of the decentralized physical infrastructure (DePIN) movement. It not only strengthens Cardano’s decentralization, robustness, and censorship resistance but also showcases to the world that Cardano is the blockchain of choice for building resilient, open-source, real-world infrastructure. The requested funding delivers far more than a technical deployment—it creates long-term economic, operational, and reputational value for Cardano at the protocol, community, and ecosystem levels.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes