AI Bookkeeping for Cardano Crypto Transactions

[Proposal setup] Proposal title

Please provide your proposal title

AI Bookkeeping for Cardano Crypto Transactions

[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

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?

Crypto users, traders, and businesses face a universal challenge: every transaction must be reported for compliance.

[Proposal Summary] Project Dependencies

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

Yes

Describe any dependencies or write 'No dependencies'

“Yes” for Dependencies — because project may rely on external factors such as: Third‑party accounting software APIs (QuickBooks, Xero, Sage, etc.) Cardano blockchain APIs and node infrastructure (Blockfrost, Cardano node) Cloud hosting providers (AWS, Azure, etc.) Open‑source AI frameworks (PyTorch, TensorFlow, Hugging Face libraries)

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

Please provide details on the intellectual property (IP) status of your project outputs, including whether they will be released as open source or retained under another licence.

Public GitHub repository maintained throughout lifecycle.

License: Apache 2.0.

Open‑source components: Cardano ingestion, AI semantics engine, review interface, export modules.

Restricted components: cloud deployment scripts, proprietary datasets.

[Theme Selection] Theme

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

AI

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).

Compared to existing market tools: Most crypto accounting platforms today are portfolio trackers, not true bookkeeping engines. They log raw blockchain events but fail to interpret them as meaningful financial entries.

They are extremely expensive, designed for retail tax reporting rather than professional accountants.

They lack multi‑jurisdiction tax logic, human‑in‑the‑loop workflows, and integration with enterprise accounting systems (QuickBooks, Xero, Sage, SAP).

They do not provide audit‑ready records or compliance transparency. What makes our idea innovative:

AI Transaction Semantics Engine

Inspired by Elmmetric’s invoice reasoning mode (refer to the link elmmetric.com), as I am part of the Elmmetric team and can bring team expertise applied to Cardano blockchain events.

Transforms ADA transactions into accountant‑grade entries (income, disposal, transfer, expense, treasury movement).

Goes beyond raw logs to infer context: business vs personal, taxable vs exempt, internal vs external.This innovation is transformative. By making ADA transactions compliant, auditable, and accountant‑grade, we reduce friction for users and businesses, lower costs for accountants, strengthen Cardano’s credibility in regulated environments, enable adoption by enterprises, DAOs, and accounting firms, and position Cardano as the first blockchain with enterprise‑grade bookkeeping infrastructure.

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

Our MVP will show a working web dashboard that ingests Cardano ADA transactions and uses an AI semantics engine to classify them into accountant‑grade categories. It will include a human‑in‑the‑loop review interface, generate audit trails, and allow exports to CSV/Excel and QuickBooks/Xero/Sage.

The prototype will be accessible as a secure web‑based SaaS beta for ~50 test users, with all open‑source components published in a public GitHub repository (Apache 2.0 license). Documentation and demo materials will also be shared with the Catalyst community.

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

Transactions processed: ≥100,000 ADA transactions ingested and classified during MVP.

Wallet coverage: ≥500 unique Cardano wallets connected.

Classification accuracy: ≥90% correct categorization, validated against accountant review.

Audit trail completeness: 100% of processed transactions generate compliance logs.

Beta adoption: ≥50 active testers using the MVP.

Export integrations: ≥200 successful exports to QuickBooks/Xero/Sage/CSV.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

We will build the Cardano‑first AI Crypto Bookkeeping & Compliance Engine that transforms raw blockchain data into accountant‑grade, audit‑ready financial records.

Core features:

Multi‑source data ingestion – wallets, smart contracts, staking rewards, native tokens, Catalyst treasury.

AI transaction semantics – classify intent, detect transfers, categorize revenue/costs, taxable vs non‑taxable events.

Tax & accounting logic – capital gains, staking income, NFT transactions, cost‑basis, disposal vs income.

Human‑in‑the‑loop review – AI drafts, accountant approval, audit trail, continuous learning.

Exports & integration – QuickBooks, Xero, CSV/Excel, IFRS/GAAP‑compatible journals.

This makes Cardano usable for accountants, businesses, and high‑activity users, driving ecosystem adoption through compliance and trust.

[Your Project and Solution] Impact

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

This project directly supports ecosystem growth by solving a critical barrier: accounting,

compliance, and reporting for Cardano transactions.

Impact outcomes:

 Allows businesses and institutions to adopt Cardano with confidence

 Makes Catalyst-funded teams fully compliant with treasury tracking

 Helps users and accountants handle ADA, native assets, and staking rewards

professionally

 Enables reliable tax reporting across multiple jurisdictions

 Increases developer capacity by providing a standard accounting format

 Establishes Cardano as a compliance-friendly blockchain for enterprise 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?

We already have a strong, production-grade AI accounting foundation (Elmmetric.co) that

handles:

 AI extraction and reasoning

 categorization of financial events

 multi-country accounting logic

 human review workflows

 syncing with accounting systems

We will extend this existing engine to handle Cardano’s blockchain data.

This gives us a significant head start and reduces technical risk.

Prior research material links :-

Elmmetric website design link: Elmmetric.com

Proof of concept: Refer to the demo at Elmmetric website

How Elmmetric Works: AI that thinks like a bookkeeper—simple steps, with you as the final approve. Refer Elmmetric.

In-house talent team : With existing team experience in Bookkeeping and Accounting

Technical feasibility and credibility: Refer to experienced team portfolio and Linkedin profiles

[Milestones] Project Milestones

Milestone Title

Cardano Blockchain Ingestion Layer

Milestone Outputs

As part of this milestone, we aim to strengthen the overall architecture by building specifically,

Parse ADA transactions

Parse delegation, staking, and rewards

Support multi-asset / native tokens

Acceptance Criteria

As part of this milestone, we are implementing the below acceptance criteria to fulfill the transaction analysis across Cardano.

Given a wallet address, the system extracts all Cardano transaction events

Evidence of Completion

Completion will be shown through sample outputs of parsed ADA, staking, rewards, and native token transactions from test wallets, verified against with code and documentation published in the public GitHub repository

Delivery Month

2

Cost

15385

Progress

10 %

Milestone Title

AI Transaction Semantics for Cardano

Milestone Outputs

The output of this milestone is going to be as described below:

A model trained to classify transaction meaning, identify taxable vs. non‑taxable events, and detect internal transfers with counterparty logic.

Acceptance Criteria

As we are doing ingestion and evaluation on a set of transactions, we measure results of the classification. And we align with the following criteria. Achieve ≥80% accuracy on a test dataset of Cardano transactions.

Evidence of Completion

Accuracy report from test dataset showing ≥80% classification performance.

Sample outputs demonstrating correct categorization of taxable vs non‑taxable events.

GitHub commits and documentation of trained model and evaluation scripts.

Verification logs showing detection of internal transfers and counterparty relationships

Delivery Month

3

Cost

25000

Progress

20 %

Milestone Title

Accounting & Tax Logic Integration

Milestone Outputs

The output of this milestone is going to be as described below:

The Capital gains engine for ADA and native assets; classification logic for staking rewards, and integration of multi‑country tax rules.

Acceptance Criteria

System must generate accurate accounting journals for at least three countries, applying local tax frameworks to capital gains, staking rewards, and asset disposals, ensuring compliance and consistency

Evidence of Completion

Sample journals produced for 3 countries (e.g., EU, US, Asia) showing capital gains, staking income, and NFT transactions.

Verification by accountants or domain experts confirming compliance with tax rules.

GitHub commits documenting tax logic modules and rule sets.

Test reports demonstrating correct cost‑basis and disposal vs income classification

Delivery Month

4

Cost

19231

Progress

30 %

Milestone Title

User Interface + Review Workflow

Milestone Outputs

Deliver a functional user interface that enables transaction review with integrated audit trail and approval workflow. Users can approve or reject AI‑generated entries, with all actions securely logged to ensure compliance, transparency, and accountability

Acceptance Criteria

Provide a user interface that allows users to approve or reject AI‑generated accounting entries. Every action must be captured in a secure, auditable trail to ensure compliance, transparency, and accountability across the review workflow.

Evidence of Completion

Screenshots or demo video of the UI showing transaction review and approval/rejection actions.

Audit logs demonstrating user actions recorded for compliance.

GitHub commits documenting UI and workflow implementation.

Test reports confirming usability and correct audit trail generation.

Delivery Month

5

Cost

23077

Progress

20 %

Milestone Title

Export & Reporting Integration

Milestone Outputs

Deliver export functionality supporting QuickBooks, Xero, CSV, and IFRS/GAAP formats, alongside basic reporting dashboards. Ensure seamless data transfer into accounting platforms and provide clear, standardized outputs for compliance and financial analysis.

Acceptance Criteria

Ensure exported data can be successfully imported into at least two accounting tools, such as QuickBooks and Xero. Imports must preserve accuracy, formatting, and compliance with standards, demonstrating seamless integration and reliable interoperability across platforms.

Evidence of Completion

Demo showing exports generated in CSV, QuickBooks, and Xero formats.

Screenshots of successful imports into at least two accounting platforms.

GitHub commits documenting export modules and reporting dashboard code.

Test logs verifying compliance with IFRS/GAAP formatting standards.

Delivery Month

6

Cost

17307

Progress

20 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Cost Breakdown of Proposed Work & Resources (Total Request: 100,000 ADA)

Milestone 1 — Blockchain Ingestion Layer (15,385 ADA / 15%)

Resources:

1 Blockchain Developer (Cardano node integration)

Cloud hosting (AWS/Azure) for ingestion layer

QA tester for transaction parsing validation

Costs: Developer salary (10,000 ADA), cloud infra (3,000 ADA), QA/testing (2,385 ADA)

Milestone 2 — AI Transaction Semantics (25,000 ADA / 25%)

Resources:

1 AI/ML Engineer (model training & evaluation)

GPU compute instances for training

Dataset preparation & labeling support

Costs: Engineer salary (15,000 ADA), GPU compute (7,000 ADA), dataset prep (3,000 ADA)

Milestone 3 — Accounting & Tax Logic Integration (19,231 ADA / 19%)

Resources:

1 Blockchain Developer (capital gains engine)

1 Tax Advisor (multi‑country rules validation)

1 QA tester for journal accuracy

Costs: Developer salary (10,000 ADA), tax advisory services (6,000 ADA), QA/testing (3,231 ADA)

Milestone 4 — UI + Review Workflow (23,077 ADA / 23%)

Resources:

1 UI/UX Designer (interface design)

1 Frontend Developer (workflow implementation)

1 QA tester (usability & audit trail validation)

Costs: Designer salary (6,000 ADA), developer salary (12,000 ADA), QA/testing (5,077 ADA)

Milestone 5 — Export & Reporting Integration (17,307 ADA / 17%)

Resources:

1 Backend Developer (export modules)

1 QA tester (integration with QuickBooks/Xero)

Reporting dashboard setup

Costs: Developer salary (10,000 ADA), QA/testing (4,000 ADA), reporting tools (3,307 ADA)

Cross‑Cutting Costs (included across milestones)

Publicity & Community Engagement: 5,000 ADA (Catalyst town halls, social media, outreach)

Project Management: 7,000 ADA (dedicated PM for milestone tracking & reporting)

Documentation & Reporting: 3,000 ADA (technical docs, user guides, Catalyst reports)

Third‑Party Products & Services

Cloud Infrastructure: AWS/Azure compute, storage, GPU instances

Software Licenses: Figma (UI design), QuickBooks/Xero connectors, compliance tools

Professional Services: Legal/accounting advisors, code auditing partner

Shortfall Coverage

If costs exceed 100,000 ADA:

Internal Co‑Funding: Contribute staff time and infrastructure.

Discounted Services: Accounting/legal partners provide reduced rates in exchange for visibility.

Revenue Strategy: Early SaaS pilot subscriptions offset additional expenses.

[Final Pitch] Value for Money

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

Value for the Cardano Ecosystem

Strategic Impact

This project delivers a complete AI‑powered bookkeeping and tax compliance solution for Cardano transactions. By funding ingestion, semantic classification, tax logic, review workflows, and reporting integration, the ecosystem gains:

Trust & Transparency: Clear accounting journals and tax compliance across multiple jurisdictions.

Adoption Enabler: Businesses and individuals can confidently use ADA and native tokens without fear of tax ambiguity.

Infrastructure Layer: Export modules to QuickBooks/Xero make Cardano interoperable with mainstream accounting tools, lowering barriers for SMEs and enterprises.

Community Benefit: Reporting dashboards and audit trails empower users to validate AI outputs, strengthening trust in decentralized finance.

Justification of Costs

Developer & Engineer Salaries: In the EU, blockchain developers and AI engineers typically earn avg good per month ). Our allocations per milestone align with these market rates, ensuring fair compensation without inflation.

Professional Services: Tax advisors and auditors charge competitive fees. Budgeting ~40–60 hours per milestone ensures multi‑country compliance validation.

Cloud Infrastructure: GPU compute for AI training costs on AWS/Azure. Allocations for Milestone 2 reflect this necessity.

UI/UX & QA Testing: Freelance UI/UX designers in Europe charge per /hour. Our budget for Milestone 4 covers ~150 hours of design and testing.

Publicity & Community Engagement: Catalyst proposals often overlook outreach. We’ve allocated 5,000 ADA for town halls, social media, and community demos to ensure adoption.

Documentation & Reporting: 3,000 ADA ensures professional documentation, user guides, and transparent reporting back to the Catalyst community.

Value for Money

Proportional Costs: Each milestone budget is proportional to the complexity and resource intensity (e.g., AI training requires more compute, hence higher allocation).

No Waste: Every line item is tied directly to a deliverable — ingestion, AI, tax logic, UI, or reporting.

Leverage Effect: By integrating Cardano with mainstream accounting tools, the project multiplies ecosystem value far beyond the initial 100,000 ADA investment.

Co‑Funding Commitment:We contribute infrastructure and staff time, reducing reliance on Catalyst funds and ensuring sustainability.

[Self-Assessment] Self-Assessment Checklist

I confirm that evidence of prior research, whitepaper, design, or proof-of-concept is provided.

Yes

I confirm that the proposal includes ecosystem research and uses the findings to either (a) justify its uniqueness over existing solutions or (b) demonstrate the value of its novel approach.

Yes

I confirm that the proposal demonstrates technical capability via verifiable in-house talent or a confirmed development partner (GitHub, LinkedIn, portfolio, etc.)

Yes

I confirm that the proposer and all team members are in good standing with prior Catalyst projects.

Yes

I confirm that the proposal clearly defines the problem and the value of the on-chain utility.

Yes

I confirm that the primary goal of the proposal is a working prototype deployed on at least a Cardano testnet.

Yes

I confirm that the proposal outlines a credible and clear technical plan and architecture.

Yes

I confirm that the budget and timeline (≤ 12 months) are realistic for the proposed work.

Yes

I confirm that the proposal includes a community engagement and feedback plan to amplify prototype adoption with the Cardano ecosystem.

Yes

I confirm that the budget is for future development only; excludes retroactive funding, incentives, giveaways, re-granting, or sub-treasuries.

Yes

[Required Acknowledgements] Consent & Confirmation

I Agree

Yes