MLabs + Cardano Racers: Powering-Up Dynamic NFTs With CIP-68

[Proposal setup] Proposal title

Please provide your proposal title

MLabs + Cardano Racers: Powering-Up Dynamic NFTs With CIP-68

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

149600

[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 Racers NFTs are locked as static CIP-25 assets, blocking upgrades, power-ups, and visual evolution. This limits player progression, engagement, and long-term retention.

[Proposal Summary] Supporting Documentation

Supporting links

• https://linktr.ee/CardanoRacers
,
• https://www.cardanoracers.com

[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

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.

The CIP-68 NFT smart contract and library for calling the smart contract actions will be open sourced. The Unity code will remain closed source.

[Theme Selection] Theme

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

GameFi

[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).

Cardano Racers is already live on Cardano mainnet, but its game NFTs are still static CIP-25 assets. Most blockchain racing titles either fix stats at mint or rely on ad-hoc burn/re-mint flows and off-chain state. On Cardano, racing options remain relatively limited, so turning Cardano Racers into a flagship title with truly upgradeable assets is a direct win for players and for the ecosystem.

Our proposal is innovative in two ways. First, we introduce standardised, onchain, upgradeable NFTs (CIP-68 + CIP-67) into a production racing game, so cars and drivers can evolve with cosmetics, temporary boosts, and stat changes driven by the NITRO native token. These improved NFTs will remain first-class Cardano assets. Second, we design and deliver a clean migration path from legacy CIP-25 to CIP-68 NFTs, including backend APIs, swap endpoints, and user guides, so existing players can bring their current cars and drivers forward without losing value.

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

The MVP will demonstrate live, upgradeable game assets in Cardano Racers using CIP-68/CIP-67. Players will be able to connect a Cardano wallet, view their existing CIP-25 car and driver NFTs, and smoothly migrate them to new CIP-68 “dynamic” versions. After migration, they can apply NITRO-driven upgrades (cosmetic changes, temporary boosts, and stat increases) and see those changes reflected both in-game and in on-chain metadata.

The prototype will be accessible through the existing Cardano Racers web client at cardanoracers.com, initially via a dedicated flow for testing and hardening the new CIP-68 features, and then rolled out to the wider mainnet player base once the contracts and APIs are battle-tested.

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

Success will be measured by tracking how many legacy CIP-25 car and driver NFTs are migrated to CIP-68 and what share of the total collection that represents. We will monitor the number of unique wallets interacting with the new contracts, the volume of NITRO used in upgrade flows, and the frequency of metadata-update transactions touching the new NFT type.

We will also look at player behaviour and ecosystem impact: changes in DAU/MAU and returning-player rates for wallets that hold CIP-68 assets, and the total Cardano transaction volume driven by the new CIP-68 infrastructure. Together, these metrics will show whether dynamic NFTs actually deepen engagement and generate meaningful activity, rather than being a purely novel upgrade.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

We aim to solve a very concrete limitation: Cardano Racers’ current CIP-25 NFTs are static, so cars and drivers cannot naturally evolve as players race, spend NITRO, or earn rewards. That holds back progression, tuning, and player retention in an otherwise live Cardano title. Our solution is to upgrade the game’s asset model to CIP-68, with CIP-67-compliant naming, and wire this cleanly into the existing Racers backend and game client.

Practically, this means introducing reference NFTs and a dedicated metadata validator for cars and drivers, migrating the existing CIP-25 collection to CIP-68, and exposing admin and player flows through APIs and the web client. Players will be able to see their current cars and drivers, swap them for dynamic CIP-68 versions, and then apply cosmetics, temporary boosts, and NITRO-driven stat upgrades that are reflected directly in on-chain metadata.

[Your Project and Solution] Impact

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

This project turns Cardano Racers into a live showcase of dynamic game NFTs on Cardano. By upgrading the existing CIP-25 collection to CIP-68 and wiring NITRO-driven upgrades directly into onchain metadata, we create a concrete example of how Cardano can support progression-based gaming without sacrificing decentralisation. For the wider ecosystem, this raises the profile of Cardano as a home for interactive GameFi, gives existing players a richer, more durable reason to keep using their wallets, and provides other teams with a practical blueprint for handling CIP-25 to CIP-68 migrations.

We will measure impact quantitatively through on-chain and behavioural metrics: the proportion of the CIP-25 car/driver collection successfully migrated to CIP-68, the number of unique wallets interacting with the new contracts, the volume of NITRO used in upgrade flows, and the frequency of metadata updates on the new NFT type. On the player side, we will track changes in DAU/MAU, returning-player rates for wallets holding CIP-68 assets, and the total Cardano transaction volume attributable to the new infrastructure. These metrics show whether dynamic NFTs deepen engagement and drive meaningful onchain activity rather than remaining a purely novel enhancement.

[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 proven Cardano and Web3 expertise with experienced full-stack game developers. Cardano Racers brings an already-live mainnet title, a working game client, and an existing NFT collection. MLabs, a leading Cardano consultancy, provides smart contract, metadata, and infrastructure architecture, including prior work on the Cardano Racers platform. Development will follow the Catalyst’s clear and transparent framework, with clarified outputs, acceptance criteria, and deliverables supporting detailed reporting, budget tracking, and community oversight.

[Milestones] Project Milestones

Milestone Title

Requirement Analysis & Design

Milestone Outputs

1. Define functional and non-functional requirements for the new metadata subsystem.
2. Prepare a comparative report highlighting the advantages of CIP-68 over CIP-25 for Cardano Racers, including an assessment of the migration's impact on platform users.
3. Define how user interfaces will change in-game

Acceptance Criteria

1. The project requirements are clearly defined, complete, and approved by stakeholders, thoroughly detailing all necessary changes.
2. The comparative report is complete, accurate, and approved by stakeholders, with a clear assessment of user impact.
3. The user interfaces includes a visual design and references to the backend/smart contract functionality that it will call.

Evidence of Completion

1. A link to the requirements document.
2. A link to the comparative report.
3. A link to the user interface design document

Delivery Month

1

Cost

14900

Progress

10 %

Milestone Title

CIP-68 Integration for Game Assets

Milestone Outputs

1. Update the game asset minting policy to enable minting of reference NFTs, ensuring that user tokens and reference NFTs share the same policy ID as required by CIP-68.
2. Develop an on-chain validator for CIP-68 reference NFTs, enabling upgradable metadata and secure asset management.
3. Update the off-chain minting contract to mint reference NFTs and lock CIP-68 metadata in a datum at the metadata validator address.
4. Enforce the CIP-68 / CIP-67 asset naming convention for game tokens and reference NFTs.

Acceptance Criteria

1. The game asset minting policy is updated for full compatibility with the new CIP-68 workflows, fully functional, and is documented.
2. An on-chain validator for managing upgradable game asset metadata is implemented, fully functional, and documented.
3. The game asset off-chain contract is updated to meet the new requirements, fully functional, and documented.
4. All newly minted game tokens and their corresponding reference NFTs follow the CIP-68 / CIP-67 naming convention, prefixed with the appropriate labels.

Evidence of Completion

1. A link to the Git revision containing the updated game asset minting policy.
2. A link to the Git revision containing the implemented metadata validator.
3. A link to the Git revision containing the updated off-chain minting contract.
4. A link to the Git revision containing the asset naming updates for game tokens and reference NFTs.

Delivery Month

3

Cost

39840

Progress

40 %

Milestone Title

Infrastructure & Testing

Milestone Outputs

1. Implement a query to fetch the current metadata for a specified game asset.
2. Implement an off-chain contract enabling admins to update metadata for a specified game asset, and expose this functionality via an API endpoint.
3. Develop unit and integration tests to validate the functionality of the new metadata subsystem.
4. Integrate cip-68 compatible assets into game.

Acceptance Criteria

1. The query is implemented, exposed via the API for users, fully functional, and well-documented.
2. The contract is implemented, exposed via the API for admins, fully functional, and well-documented.
3. Integration tests are implemented for all affected off-chain contracts, ensuring correct behavior in standard and edge-case scenarios. Unit tests cover all components, critical for the correct functioning of the new metadata subsystem. All tests are integrated into our continuous integration (CI) pipeline.
4. Game updates should reflect the design document.

Evidence of Completion

1. A link to the Git revision containing the implemented query.
2. A link to the Git revision containing the implemented contract, along with the corresponding query.
3. A link to the Git revision containing the implemented unit and integration test suites.
4. A link to video evidence of a CIP-68 asset working in-game

Delivery Month

4

Cost

35990

Progress

60 %

Milestone Title

Swapping Legacy CIP-25 Game Assets

Milestone Outputs

1. Add an endpoint enabling users to swap their legacy CIP-25 game assets for equivalent assets with upgradable CIP-68 metadata.
2. Provide Cardano Racers users with clear guidelines for exchanging legacy assets, including a detailed overview of the swap process, potential costs, and associated risks.

Acceptance Criteria

1. The endpoint is implemented and exposed via the API, allowing users to exchange their legacy CIP-25 game assets for equivalent CIP-68 assets, fully functional and thoroughly documented.
2. Guidelines are published and accessible to all Cardano Racers users, clearly describing the swap process, including steps, potential costs, and associated risks. The content is reviewed and approved by stakeholders for clarity, completeness, and accuracy.

Evidence of Completion

1. A link to the Git revision containing the implemented endpoint.
2. A link to the published user guide detailing the asset swap process.

Delivery Month

6

Cost

30590

Progress

80 %

Milestone Title

Mainnet Launch & User Feedback

Milestone Outputs

1. Release the new version of Cardano Racers with upgradable game assets and deploy it to Cardano mainnet.
2. Gather and evaluate user feedback to address identified issues and guide future platform development.

Acceptance Criteria

1. A new version of Cardano Racers has been released and deployed on mainnet, available for all users to try and evaluate.
2. All relevant user feedback is documented, analyzed, and summarized in a report highlighting identified issues and suggesting potential directions for improvement.

Evidence of Completion

1. A link to the GitHub release, accompanied by a short video demonstrating that the CIP-68 updates are live on mainnet.
2. A written report summarizing collected user feedback.

Delivery Month

8

Cost

28280

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

MILESTONE 1

Define requirements for the new metadata subsystem 20

Prepare a comparative report highlighting the advantages 20

Define how user interfaces will change in-game 18

TOTAL 58 hrs

MILESTONE 2

Update minting policy for CIP-68 35

Implement CIP-68 metadata validator 35

Update off-chain CIP-68 minter 70

Enforce CIP-68/67 naming rules 15

TOTAL 155 hrs

MILESTONE 3

Add game asset metadata query 40

Admin metadata update API contract 50

Add unit and integration tests 25

Integrate cip-68 compatible assets into game. 25

TOTAL 140 hrs

MILESTONE 4

User endpoint for CIP-25 to CIP-68 swap 80

Publish clear legacy swap guidelines 39

TOTAL 119 hrs

MILESTONE FINAL

Launch mainnet version with upgrades 75

Collect and analyse user feedback 35

TOTAL 110 hrs

Subtotal: 582 hours @90 USD/hour = 52,360 USD

Total (@ rate $0.35 USD / ADA): 149,600 ADA

[Final Pitch] Value for Money

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

This budget delivers high value to the Cardano ecosystem by funding a live, production upgrade of Cardano Racers from static CIP-25 NFTs to fully upgradeable CIP-68 game assets. The result is not just a better racing game, but a concrete, onchain demonstration of how dynamic NFTs, NITRO-driven upgrades, and collection-wide migration can work at scale on Cardano.

Every ADA spent creates ecosystem benefits. It directly supports wallet and onchain activity and user retention by giving existing and new players a reason to keep returning: their cars and drivers can now gain cosmetic improvements, temporary boosts, and persistent stat improvements that are reflected onchain. It drives transaction growth through CIP-68 mints, metadata updates, NITRO-powered upgrades, and asset swap transactions as legacy CIP-25 NFTs are migrated.

[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