NuNet: Secure AI and DePIN deployment with Cardano staking

[Proposal setup] Proposal title

Please provide your proposal title

NuNet: Secure AI and DePIN deployment with Cardano staking

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

200000

[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?

In a decentralized peer to peer economy of compute powering AI agents and DePIN nodes, we need a way to establish trust, enable secure interactions and a fair exchange with frictionless payments

[Proposal Summary] Supporting Documentation

Supporting links

• https://nunet.io/
,
• https://gitlab.com/nunet
,
• https://gitlab.com/nunet/device-management-service/-/tree/main?ref_type=heads
,
• https://gitlab.com/nunet/device-management-service/-/tree/main/tokenomics/contracts

[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. It allows for peer to peer utilisation of hardware resources deployment of AI agents, DePIN nodes etc in strict adherence to contract terms. NuNet NuActor system The NuActor framework is the secure communication and authentication mechanism through which different entities interact in the NuNet network. It enables any two entities to interact via secure, asynchronous messages, allowing only authorised entities to utilise resources, trigger workflows etc. Nunet Contract Framework Contracts in Nunet allow entities to define their terms of engagement which gets enforced during orchestration of compute workloads on available resources. It also allows peer to peer payments to be made on chain for settlement of any compute utilisation. The current architecture considers use of a trusted third party to manage all operations related to Contracts using the secure authentication and communication layer provided by NuActor framework

[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.

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

Smart Contracts

[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).

Our novel orchestration protocol uniquely combines Decentralised Identity with Object Capability model to provide a mechanism for fine grained authorisation & decentralised authentication which is designed from the ground up for securely running AI agents, DePIN nodes etc on a distributed peer to peer network. Our contract implementation leverages the electronics rights paradigm to allow peers to express their terms of engagement including use of staking smart contracts as economic security or reputation. We integrate Cardano based payments for seamless settlement and micro-payments.

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

Our MVP will demonstrate a secure deployment of an AI application or DePIN node using Nunet's decentralised orchestration and Contract framework with NTX staking on Cardano as a requirement for economic security. A staking smart contract will be developed and integrated in the deployment workflow for demonstration. It will also show the workflow for payments on-chain using the NTX token on Cardano in accordance to pre agreed contract terms between parties. The complete solution will be open source and accessible on our Gitlab repository.

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

We can mention the following metrics that we would aim for

Number of Deployments: We aim to show at least 2 deployments with NTX staking specified in the Nunet contract. This proves the technical feasibility of the MVP.

Total NTX Staked: We project a total locked value of 5000 - 10,000 NTX

Number of Unique Addresses: Our target is to have at least 5 unique active wallets to interact with staking smart contract and the deployment workflow.

Settlement volume: We expect to show successful settlement with on chain transaction volume 1000 - 5000 NTX

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

What we already have

Nunet has developed a decentralised compute protocol with ability to orchestrate over distributed devices ranging from edge devices like raspberry pi to large data centre grade machines. Our solution allows for secure deployment of AI agents, DePIN nodes etc based on a Contract. It uses the object capability model along with decentralised identifiers (DIDs) to ensure secure and authorised usage of hardware resources as well as secure interactions between nodes. NuNet contracts are a novel integration of Agoric's Electronic Rights Transfer Protocol (ERTP) with object capability security models, creating secure decentralized economic contracts for compute resource sharing that can operate with both trusted third parties and blockchain execution environments while maintaining capability-based tokenomics.

Nunet Contract framework allows parties to define terms of engagement over the network. It enables settlement in NTX on Cardano blockchain. It leverages the inherent security and communication capabilities of the NuActor framework to manage the entire service lifecycle, from authentication to payment initiation. This includes:

• Decentralised Identifier: Entities are uniquely identified using DIDs which are an integral part of the NuActor framework
• Capability based Authorization: Instead of centralized permissions, ability to deploy on resources in the network will be determined by the capability that entity has been provided. These capabilities are non-transferable tokens that represent a specific right or permission, ensuring a zero-trust environment where no entity is inherently trusted.
• Trusted parties as Payment Provider and as Contract Host: The terms of a service agreement between two parties (e.g., a client and a service-providing AI agent) could be agreed off-chain or, if Cardano integration allows, via on-chain governance. These terms will be encapsulated and enforced by a Contract actor hosted by a trusted third party. Contract Actor also leverages NuActor framework for secure communication with authorised entities.

What we want to build next

We want to bring the ability to use NTX as economic security into our contracts functionality to add another level of trust and reputation for anyone using our protocol in a decentralised network. The core of this solution lies in further developing the decentralised orchestration capabilities based on NuActor framework to support integration with staking smart contracts on Cardano blockchain and adhering to specific stake requirements specified within the Nunet Contract architecture.

Core Components of the Solution:

• Integration with Cardano Smart Contracts: We will extend the Nunet frameworks to understand and verify the stake requirements specified in the contract.
• Contract Framework: Modify the architecture and implementation of the contracts functionality to support NTX stake requirement on Cardano blockchain.
• Decentralised Orchestration: Deployment with contract will be able to interact with the smart contract deployed on Cardano blockchain and verify that the stake requirements are correctly fulfilled by the participants as agreed in the contract.
• Model Staking Contract: We will create a simple staking contract to facilitate the demonstration of the functionality. It will allow participants to stake NTX on Cardano and remove their stake if no longer required.
• User Friendly UI based workflow: We will integrate the updated frameworks into Nunet Appliance which offers a standardised user friendly way to interact with the Nunet components

Summary

The protocol has security baked in with NuActor messaging framework. The architecture of Nunet contracts enables secure decentralized economic contracts for a fair utilisation of compute resources between peers. The staking functionality adds another layer to the decentralized network. It not only allows peers to interact with some economic security, NTX stake also serves as reputation information. This can be further enhanced into delegated staking for community involvement and participation.

[Your Project and Solution] Impact

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

Decentralized AI and DePIN ecosystems need several mechanisms to establish trust between peers on the network. By integrating Cardano-based NTX staking and stake verification into NuNet’s global compute orchestration layer, this project introduces an economic security mechanism directly into the workflow of decentralized computation. Stake becomes an enforceable signal of commitment and reliability, not just a passive asset.

Cardano as the trust and reputation layer for decentralized AI

This project elevates Cardano into the role of the settlement and reputation layer for AI-native networks. Staking on Cardano will function as:

• Economic skin-in-the-game for compute providers and agent operators
• A trust signal that informs access and prioritization
• A reputation anchor that persists on-chain and accumulates over time
• A security primitive that mitigates malicious or low-quality behavior
• A transparent ledger of participation for all actors in the ecosystem

This makes Cardano the foundation on which AI agents, workflows, and DePIN nodes can reliably operate at scale.

Driving sustained on-chain activity and real ecosystem demand

Because staking becomes an operational requirement within NuNet’s compute network, Cardano will see recurring, usage-driven on-chain activity, including:

• NTX staking and unstaking transactions
• Stake adjustments tied to workload requirements
• On-chain trust updates and reputation-linked events
• Smart contract calls triggered by compute job execution
• Payment and settlement events driven by cross-node deployments

As NuNet scales across regions, partners, and workloads, this generates sustained, utility-based demand for Cardano transactions — not speculative behavior, but real economic throughput tied to AI & DePIN workloads.

Embedded in real pilots and partner deployments

This staking mechanism will not remain theoretical. It will be integrated into NuNet’s active pilots and POCs with enterprise partners, DePIN projects, Cardano SPO etc.

Each deployment will require staking and stake verification as part of node onboarding, agent execution, and workflow orchestration. This guarantees real-world usage from the moment the prototype is delivered.

These pilots bring external organizations, compute operators, and AI developers onto Cardano—driving real adoption and long-term ecosystem participation.

Long-term impact

By delivering a working staking layer for decentralized compute and embedding it into active AI/DePIN pilots:

Cardano becomes a critical trust and verification layer for global decentralized AI and DePIN infrastructure.

NTX staking becomes a live economic mechanism, not just a financial instrument.

Developers gain a secure, Cardano-backed foundation for building AI-native applications, autonomous agents, and DePIN nodes.

In the long run, this positions Cardano at the center of a rapidly growing decentralized AI and DePIN ecosystem — where staking, reputation, and trust are essential primitives for intelligent, autonomous networks.

[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:

As such we do not see any major risk for this project. We need smart contract development capabilities for Cardano for which we will look at internal personnel or augment the team if specific expertise is needed. We also need compute providers signing contracts via the Nunet network. To mitigate this, Nunet commits to provide a certain amount of its own hardware resources for the purpose of this project.

[Milestones] Project Milestones

Milestone Title

Modify the Nunet Contract framework Architecture to support staking requirement

Milestone Outputs

A fully updated Contract Framework architecture that supports specifying NTX staking as an enforceable requirement within NuNet contracts. This includes extending schema definitions and contract templates to reference stake conditions; updating contract actors to interpret staking rules; and modifying the contract creation and signing flow so that staking requirements can be embedded and agreed upon.

Acceptance Criteria

Contract Framework successfully accepts and processes contract definitions that include NTX stake requirements. The updated implementation successfully passes unit tests and acceptance tests. The revised code is merged into the main branch.

Evidence of Completion

Evidence of Completion:

1. Public GitLab repository containing the updated framework code, documentation, diagrams, and test results.
2. Detailed commit history showing implementation of stake-related features.
3. CI/CD logs demonstrating successful unit tests and acceptance test execution.

Delivery Month

1

Cost

40000

Progress

20 %

Milestone Title

Update the Nunet orchestration protocol to verify stake on Cardano

Milestone Outputs

Milestone Outputs:

1. Integration of stake-verification logic into the orchestration workflow
2. Orchestration components updated to check whether stake conditions defined in the NuNet Contract can be validated against the Cardano smart contract.
3. Updated documentation capturing the support for stake verification functionality

Acceptance Criteria

Acceptance Criteria:

1. Orchestration is able to request and receive a stake-verification result for a given contract.
2. Deployments proceed when a positive stake-verification result is returned.
3. Deployments requiring stake are not executed if verification is not available.
4. Successfully passed unit tests and acceptance tests

Evidence of Completion

Evidence of Completion:

1. Public GitLab repository containing the updated code, documentation, diagrams, and test results.
2. Detailed commit history showing implementation of stake-related features.
3. CI/CD logs demonstrating successful unit, integration, and acceptance test execution.

Delivery Month

2

Cost

40000

Progress

40 %

Milestone Title

Implement NTX staking contract on Cardano

Milestone Outputs

Milestone Outputs:

1. A functional NTX staking smart contract deployed on Cardano testnet or mainnet (as appropriate for the MVP)
2. Basic staking and unstaking flow allowing participants to lock and release NTX
3. Contract logic designed to provide a clear verification signal that NuNet orchestration can consume

Acceptance Criteria

Acceptance Criteria:

1. Smart contract compiles successfully and supports staking and withdrawal of NTX in line with the MVP requirements
2. Verification of a staked amount can be retrieved by off-chain code or API used by NuNet’s orchestration layer.
3. Minimal test suite demonstrates correct behaviour for staking, verification, and basic failure cases.
4. Smart contract is deployed to Cardano and accessible for integration testing.

Evidence of Completion

Evidence of Completion:

1. Public GitLab repository with contract code, deployment scripts, and documentation.
2. Logs or screenshots confirming successful deployment on the target network.
3. Test output demonstrating that staking and verification functions behave as expected.

Delivery Month

4

Cost

60000

Progress

70 %

Milestone Title

Working deployment with NTX staking on Cardano Blockchain

Milestone Outputs

Milestone Outputs:

1. A working end-to-end demonstration showing a NuNet deployment that uses the staking contract as an economic-security requirement
2. Integration of the updated Contract Framework, orchestration layer, and staking smart contract into a cohesive workflow
3. A functional prototype illustrating how a user specifies staking requirements, protocol verifies stake, and completes a deployment

Acceptance Criteria

Acceptance Criteria:

1. A deployment requiring NTX stake can be completed successfully when staking conditions are met.
2. The process correctly blocks or halts deployments when no valid stake is detected.
3. All major components—Contract Framework, orchestration protocol, staking contract—operate together without errors in the demo environment.

Evidence of Completion

Evidence of Completion:

1. Video recording showing the deployment process with contracts, staking and payments.
2. Open source Gitlab repo with appropriate code and documentation.
3. Logs or test output illustrating at least one successful and one rejected deployment based on staking rules.

Delivery Month

6

Cost

60000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Our budget will be allocated across these key areas:

• Development & Integration: This covers the engineering and project management resources for modifying the NuNet frameworks, building and integrating the support for staking requirements, and implementing staking smart contract on Cardano. This includes research, software development, tools, documentation and testing.
• Infrastructure & Operations: This budget will support the initial setup and maintenance of our own nodes for testing, as well as covering any operational costs related to the initial deployment and orchestration of the MVP on devices in the network.
• If needed we may utilise funds to market the solution to Nunet community for testing and validation.

Milestone #1 Nunet Contract framework Architecture modification

40,000 ADA / Resources & Skills Needed: NuActor experts, QA testers, DevOps, test program design, feedback analysis, software development expertise

Milestone #2 Nunet orchestration framework modification

40,000 ADA / Resources & Skills Needed:, NuActor experts, QA testers, DevOps, test program design, feedback analysis, software development expertise

Milestone #3 Staking Contract implementation on Cardano

60,000 ADA / Resources & Skills Needed: Smart contract and blockchain specialists engineers, QA testers, test program design, feedback analysis, software development expertise

Milestone #4 Working deployment with NTX staking on Cardano Blockchain

60,000 ADA / Resources & Skills Needed: compute resources cost, NuActor experts, smart contract and blockchain specialists, video/demo production skills, full stack developers

[Final Pitch] Value for Money

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

This proposal delivers high technical value, clear deliverables, and long-term ecosystem impact at a extremely low cost The budget directly funds the design, development, testing, and deployment of Cardano-native staking contracts and integrates them into NuNet’s decentralized compute network—creating real, recurring on-chain activity.

High leverage for the Cardano ecosystem

For a relatively small investment, Cardano gains:

• A staking framework used by decentralized AI agents and DePIN devices
• A trust and reputation layer built on Cardano
• Integration into NuNet’s existing global compute network, multiplying usage without additional Catalyst spend
• mmediate adoption through multiple pilots and partner POCs

The result is a cost-efficient way to introduce Cardano to a rapidly growing sector: decentralized AI, DePIN networks and machine-to-machine economies.

Direct cost efficiency

This project leverages:

• NuNet’s existing orchestration framework
• Prior Catalyst-funded components already built and operational
• An established engineering team with expertise in decentralized compute
• Internal infrastructure for testing and deployment

Because much of the surrounding stack already exists, Catalyst funds are used solely for the new Cardano-specific components, maximizing output per ADA spent.

Deliverable-linked budget

The budget is tied tightly to concrete deliverables:

• Smart contract design & implementation
• Off-chain integration into NuNet nodes and workflows
• Automated staking verification logic
• Documentation, SDK updates, and tooling

Every cost component maps to a milestone with measurable outputs, ensuring transparency and accountability.

Generates ongoing on-chain value, not one-time output

Unlike many infrastructure projects, this integration produces recurring real-world transactions:

The more AI tasks and DePIN devices join the network, the more Cardano is used—creating compounding value well beyond the initial Catalyst investment.

Shared-risk, high-return development

NuNet is committing engineering time, infrastructure beyond and pilots with partners beyond what Catalyst funds cover. Catalyst funds “bootstrap” the Cardano components, while NuNet invests significantly in the wider compute network, partner integrations, and ongoing maintenance. This results in:

• Lower cost for Catalyst
• Higher leverage per ADA
• Long-term sustainability without repeated funding requests

Sustainable and self-reinforcing

Once delivered, the system becomes self-sustaining:

• Staking contracts require minimal ongoing maintenance
• Partner pilots will continue to consume Cardano resources
• New developers can integrate via SDKs and APIs without extra cost
• Real-world workflows create organic demand rather than subsidies
• This ensures that Catalyst’s investment continues generating value for years.

[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