ZK Identity Oracle: Sybil Defense & DeFi Compliance

[Proposal setup] Proposal title

Please provide your proposal title

ZK Identity Oracle: Sybil Defense & DeFi Compliance

[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

12

[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?

DeFi faces regulatory risks without KYC, yet KYC destroys privacy. DAOs are broken by Sybil bots. Builders lack a ZK-Oracle to verify "Compliance" & "Uniqueness" on-chain without revealing user data.

[Proposal Summary] Supporting Documentation

Supporting links

• https://socious.io
,
• https://github.com/socious-io

[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.

Our project is open source under the GNU General Public License v3.0 (GPLv3). This allows free use, modification, and distribution, provided any derivative work is also licensed under GPLv3. This approach fosters collaboration and community-driven innovation. By promoting shared knowledge, we aim to build a more transparent, robust, and impactful solution for the impact job sector with help from the global developer community.

[Theme Selection] Theme

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

Privacy

[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).

Innovation: Ecosystem Research & Value Proposition

Market Gap Analysis & Ecosystem Research

Our proposal is not creating a new Identity standard; it is creating the missing middleware that makes existing standards usable for dApp developers. We are submitting under the "Prototyping new substantial features to existing on-chain products" area of interest.

1. Ecosystem Research: The "Implementation Gap"

We have analyzed existing solutions within the Cardano ecosystem (including previous Catalyst-funded projects like IAMX and standard Identus implementations):

• Existing Identity Wallets (e.g., RootsWallet, Lace): These store credentials but do not provide a universal standard for private on-chain verification inside a third-party Smart Contract.

• DeFi KYC Solutions: Most currently rely on centralized "Allow Lists" (registering wallet addresses on-chain).

  • The Problem: This creates a public link between a user's wallet history and their real-world identity (GDPR nightmare), and often requires users to re-submit documents for every new dApp (high friction).

• Oracles (e.g., Charli3, Orcfax): These focus on price feeds and data, not Identity Attributes.

2. The Socious Value Proposition

We differ from existing market solutions by introducing Zero-Knowledge (ZK) Middleware utilizing Aiken. We are not building a "Walled Garden" identity app; we are building the API that allows other dApps (DEXs, Voting Tools) to consume identity safely.

Innovation A: Unlinking Identity from Activity (Privacy)

• Current Solution: A RealFi dApp whitelists user wallets. If the whitelist is leaked or inspected, the user is doxed.

• Socious ZK Innovation: We decouple the attribute from the identifier. The user proves they possess a "Compliant" credential via a mathematical Zero-Knowledge Proof submitted to our Oracle.

• The Outcome: The dApp receives a TRUE signal (User is Compliant), but never sees the user’s name, country, or wallet history. This is the breakthrough required for Institutional RealFi (RWA).

Innovation B: Sybil Resistance without Biometrics

• Current Solution: "Proof of Humanity" models often require video submissions on IPFS, creating privacy concerns.

• Socious ZK Innovation: We use the Liveness_Check credential stored in the user's self-sovereign DID (Hyperledger Identus). Our Oracle verifies uniqueness via a cryptographic "Nullifier."

• The Outcome: We enable Quadratic Voting (1 Person = 1 Vote) without ever asking users to publish biometric data publicly.

Innovation C: Developer Experience (The "One-Line" Integration)

• Current Solution: Integrating Identity into a dApp currently requires deep knowledge of CIPs (Cardano Improvement Proposals) and complex off-chain code.

• Socious ZK Innovation: We package the ZK verification into a simple SDK and an Aiken Smart Contract. A dApp developer can add Socious.verify({ requirement: 'human' }) to their workflow without being a cryptography expert.

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

Prototype Overview: Deliverables & Access

Prototype Goal: Functional Testnet Launch

In alignment with the category goal to "achieve a public launch... for testing and feedback," our MVP will demonstrate a fully functional Zero-Knowledge Identity Oracle running on the Cardano Pre-Production Testnet.

We have moved past the concept phase. As an existing Cardano builder (Socious Platform is live), we possess the foundational code for Credential Issuance. This project scopes the Verification Middleware.

What the Prototype Will Demonstrate

We will demonstrate three tangible components that prove the "End-to-End" flow of private verification.

1. The On-Chain Component: Aiken Oracle Contract

• Demonstration: A deployed smart contract that accepts ZK Proofs and returns validation data.

• Key Feature: High-efficiency validation logic written in Aiken to ensure the cost of verifying a user is negligible (low ADA fees).

• Verification: Users can inspect the script on Cardanoscan to confirm it executes logic trustlessly without centralized admins keys.

2. The User Component: The "ZK-Voting" Demo dApp

To gather user feedback, we will deploy a live Reference Implementation (e.g., "The Socious Mock DAO").

• Scenario: A "Sybil Defense" test.

• User Action: A user will claim a "Verified Human" credential from the Socious playground. They will attempt to vote on a proposal.

• The Proof:

  • Success: The vote counts, but the user's wallet address is NOT linked to their ID in the public metadata (Anonymous Voting).

  • Fail: The user switches to a second wallet and tries to vote again. The Oracle rejects the transaction (Sybil Defense) despite the wallet being different, proving the "Nullifier" logic works.

3. The Builder Component: Developer SDK & CLI

• Demonstration: A publicly available NPM package @socious/zk-oracle-sdk.

• Utility: Enables any developer to generate the necessary ZKP on the client side and submit it to the chain.

Community Engagement & Feedback Plan

Our engagement strategy prioritizes Developer Experience (DX) and Security Validation. We will move beyond passive updates to active collaboration with the Cardano developer ecosystem.

1. Transparent & Open Development (Milestones 1–3)

• Open Source First: All development will occur in public GitHub repositories. We will invite the Aiken Community and Intersect technical working groups to review our Oracle logic as it is built.

• Regular Updates: We will post progress logs on the Cardano Forum and Discord, soliciting feedback on architectural decisions (e.g., ZK circuit design) before they are finalized.

• Developer Office Hours: During the SDK development phase, we will host monthly open technical sessions to discuss integration friction points with early adopters.

1. The "Sybil Challenge" (Milestone 4)

We will gamify the testing process to ensure the protocol is battle-tested before Mainnet release.

• Gamified Stress Testing: We will launch the "Mock DAO" on Testnet and invite the community to "break" the identity uniqueness check.

• Structured Triage: We will utilize GitHub Issues with clear severity classifications to organize and address community findings publicly.

3. Knowledge Transfer & Adoption (Milestone 5)

• Integration Workshops: Post-launch, we will conduct virtual workshops demonstrating how to integrate the SDK into existing Governance tools and dApps.

• Strategic Alignment: We will actively solicit feedback from the Project Catalyst and Intersect operations teams to ensure our ZK-ID solution aligns with future requirements for "Voltaire" voting and Quadratic Funding.

Where to Engage

• Source Code & Issues: GitHub (Open License)

• Live Demo UI: playground.socious.io

• Documentation: docs.socious.io/zk-oracle

• Discussion: Dedicated channels on the Socious Discord.

Justification of On-Chain Transaction Impact

Every verification is a transaction.

• Direct Impact: Every time a user proves their identity to a dApp, they interact with the Oracle contract (TX generated).

• Multiplier Impact: By enabling compliance, we unlock Real World Assets (RWA) on Cardano. RWAs generate high-volume, high-value settlement transactions that currently cannot exist on Cardano due to compliance blockers.

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

Realistic Measures of Success

Our success criteria define the transition from "Proprietary Identity App" to "Public Infrastructure." With a budget of 200,000 ADA, we commit to delivering a robust, stress-tested protocol ready for critical ecosystem use.

We measure success through four distinct lenses: Technical Deliverables, On-Chain Functionality, Developer Engagement, and Ecosystem Validation.

1. Technical Deliverables (The "Definition of Done")

We commit to delivering verifiable, open-source code assets. Success is achieved when these components are public and usable:

• Aiken Smart Contracts: Completion and open-sourcing of the ZK-Oracle validation scripts, fully optimized for Mainnet fee parameters.

• Developer SDK: Publication of the @socious/zk-oracle package on NPM (Node Package Manager), enabling dApp integrations in under 30 minutes.

• Zero-Knowledge Circuits: Publication of the ZK-circuit logic used to verify Hyperledger Identus credentials without revealing PII.

2. On-Chain Metrics (Quantitative Verification)

We will demonstrate success through visible activity on the Cardano Pre-Production Testnet. We define success by the reliability of the protocol.

• Metric 1: Prototype Transaction Volume (Target: 1,000+ Interactions)

  • Measurement: Tracking the Script Address of the Socious ZK-Oracle on a block explorer (Cexplorer.io).

  • Target: We aim to generate 1,000+ verification transactions during the "Mock DAO" community testing phase. Each transaction represents a user generating a ZKP and the contract validating it.

• Metric 2: Sybil Defense Success Rate (Target: 100%)

  • Measurement: During the public "Sybil Challenge," we will track rejected transactions.

  • Success Criterion: The on-chain oracle must correctly reject 100% of attempts where a verified user tries to vote twice using different wallets. This serves as the technical Proof-of-Concept for secure Quadratic Funding.

• Metric 3: Smart Contract Optimization (Cost verification)

  • Measurement: Benchmarking ExUnits (Memory & CPU) usage.

  • Target: Ensuring verification costs remain minimal (approaching standard tx fees) to ensure this infrastructure is scalable for DAOs with thousands of members.

3. User Adoption & Feedback (The Feedback Loop)

Since this is a prototype, "User" is defined as Developers and Early Testers.

• Developer Engagement:

  • Metric: 5+ unique forks/stars on the GitHub repository within 3 months of launch.

  • Metric: 50+ unique downloads of the SDK via NPM, validating the "Developer Experience" (DX).

• The "Mock DAO" Participation:

  • Metric: 100+ Unique DIDs claiming credentials to participate in our demo environment.

  • Rationale: This proves that the User Experience (UX) of verifying—which requires interacting with a ZK-Prover—is seamless enough for average Cardano voters.

4. Qualitative Ecosystem Validation (Governance)

We aim to position Socious as the enabling technology for fair governance at scale.

• Catalyst Future Pathway: We aim to demonstrate that ZK-ID is the viable technical solution to implement secure Quadratic Funding in future Catalyst rounds, solving the current "1 Coin = 1 Vote" wealth bias without forcing DRep delegation.

• Intersect Scale: Successfully demonstrating that the solution can automate "Membership Checks" for Intersect’s constitutional governance, scaling their One-Person-One-Vote model using cryptographic verification rather than manual checks.

Justification of Metrics Strategy

These measures reflect a 200,000 ADA ambition. We are not just shipping "code that runs"; we are shipping "code that is secured, audited, and optimized." By tracking cost-efficiency and 100% Sybil defense rates, we demonstrate that Cardano has a production-ready Identity Oracle capable of handling millions of dollars in RWA or governance power.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

The Problem: The "Privacy vs. Trust" Paradox

Cardano adoption is currently throttled by two fundamental conflicts that cannot be solved by standard smart contracts alone:

1. DeFi Compliance (RealFi): To unlock Institutional Liquidity and Real World Assets (RWAs), protocols must enforce KYC/AML rules. Currently, this forces users to upload passports to centralized servers (high hacking risk) or whitelist public wallet addresses (doxxing their financial history). This destroys the privacy ethos of blockchain.

2. Governance Integrity (DAOs): Cardano governance (Project Catalyst, DAOs) aims for fairness. However, standard "1 Token = 1 Vote" systems inevitably lead to Plutocracy (Whale dominance). Alternative models like Quadratic Voting fail because they cannot prevent Sybil Attacks (one person creating 100 wallets).

The Solution: The Socious ZK-Identity Oracle

We are proposing the development of Middleware Infrastructure—an Aiken-based Zero-Knowledge Identity Oracle. This SDK allows any third-party dApp on Cardano to verify a user’s "Humanity" or "Compliance" status without ever seeing their underlying data.

This project is not a cold start; it is the strategic "Verification Layer" built on top of our existing, live Self-Sovereign Identity (SSI) platform.

1. Building on Proven Foundations (Foundational Work)

Unlike theoretical proposals, Socious is an established Cardano builder. The "Issuer" and "Holder" components of our architecture are already operational.

• Live Product: app.socious.io is a live Web3 platform where users create accounts and receive Decentralized Identifiers (DIDs).

• Open Source Commitment: Our entire tech stack operates with an "Open Source First" philosophy. Reviewers can verify our technical capabilities and existing work at our public repository: https://github.com/socious-io.

• The Prototype Gap: We currently issue credentials using Hyperledger Identus (formerly Atala PRISM). The missing piece—which this proposal funds—is the On-Chain Verification Bridge (The Oracle) that allows smart contracts to consume these credentials privately.

2. Technical Architecture: How the Oracle Works

Our solution architecture separates Identity (User) from Validation (dApp) using Zero-Knowledge Proofs (ZKPs).

Layer 1: The Identity Wallet (Existing/Socious)

• The user completes verification (e.g., Liveness Check or KYC) via the Socious platform.

• A verifiable credential (e.g., Credential_Humanity_V1) is issued to the user's DID.

Layer 2: The ZK-Prover (New Prototype Deliverable)

• We will build a client-side SDK that runs in the user's browser or wallet.

• When a user interacts with a dApp, this SDK generates a Zero-Knowledge Proof.

• The Logic: "I attest that I own a valid credential signed by Socious, and I generate Nullifier_Hash_XYZ."

• The Innovation: This proof does not contain the user's name, country, or wallet history—only the mathematical assurance of truth.

Layer 3: The Verification Smart Contract (New Prototype Deliverable - Aiken)

• We will deploy a highly optimized Aiken Smart Contract on the Cardano Pre-Production Testnet and Mainnet.

• This contract acts as the Oracle. It accepts the ZK Proof, verifies the cryptography on-chain, and returns a Boolean (True/False) to the calling dApp.

3. Addressing Key Use Cases

Use Case A: Sybil-Resistant Voting (Solving the Bot Problem)

DAOs want "One Person, One Vote" but don't want to force members to dox themselves.

• The Workflow:

  1. User connects wallet to DAO voting dApp.

  2. User calls Socious.Vote({ Proposal_ID }).

  3. Our system generates a "Nullifier" (a unique hash specific to this user + this vote).

• The Sybil Defense: If the user switches to a second wallet and tries to vote again, they will technically generate the same Nullifier (because it is derived from their unique biological identity/credential). The Oracle sees the duplicate Nullifier and rejects the second vote.

• Result: Mathematical guarantee of uniqueness without biometric exposure.

Use Case B: DeFi Compliance (Solving the Regulatory Problem)

RealFi protocols (e.g., Tokenized Bonds, Real Estate) need to block users from sanctioned jurisdictions.

• The Workflow:

  1. User connects wallet to a Compliance-Gated DEX.

  2. User generates a ZK proof: "My country is NOT in the list [NK, IR, RU, ...]".

  3. The Oracle verifies the proof valid.

  4. The DEX Smart Contract allows the deposit.

• Result: Regulatory compliance is satisfied, but the user's personal identity is never stored by the DEX or revealed on-chain.

4. Deliverables & Integration Plan

Our goal is to launch a functional Reference Implementation that developers can test.

Deliverable 1: The @socious/zk-oracle SDK

• An NPM package allowing any developer to integrate "Log in with ZK-Identity" in minutes.

• Example code: const verify = await Socious.verify({ requirements: ['KYC_Level_1'] });

Deliverable 2: The "Mock DAO" Demo App

• A publicly accessible URL where Catalyst users can claim a "Test Credential" and try to "break" the voting system using bots. This gamifies the testing process.

Deliverable 3: Open Source Aiken Contracts

• Fully commented, audited, and optimized Aiken scripts available on GitHub for community reuse.

Conclusion

This proposal upgrades the Cardano ecosystem from "Basic Identity" (storing data) to "Actionable Identity" (using data privately). By combining our existing open-source platform with a new Aiken verification layer, we provide the essential infrastructure required for Quadratic Voting, Privacy-Preserving DeFi, and Regulatory Compliance.

[Your Project and Solution] Impact

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

[IMPACT] Positive Impact on the Wider Cardano Community

Our proposal transforms Self-Sovereign Identity (SSI) from a theoretical standard into a commercial utility. By building the Socious ZK-Identity Oracle, we deliver the critical middleware that bridges the gap between user privacy and ecosystem needs (Compliance & Fairness).

We define our impact through three specific vectors: Unlocking RealFi Liquidity, Solving Governance Fairness, and Open-Source Developer Acceleration.

1. Driving Meaningful On-Chain Transaction Volume

In alignment with the category requirements, this project is designed to drive verifiable increases in network activity. Unlike standalone dApps limited by their own marketing, our product is Middleware. This means our transaction volume scales with the success of every dApp that integrates us.

• The "Verification" Transaction: Every time a user interacts with a gated DeFi pool, a Launchpad, or a DAO vote using our SDK, they must submit a Zero-Knowledge Proof (ZKP) to our on-chain Oracle.

• The Multiplier Effect:

  • If a Lending Protocol integrates Socious ZK-Oracle to comply with regulations, every loan origination generates an additional verification transaction on the Cardano network.

  • If a Voting Tool integrates us for Sybil Defense, every vote cast requires an accompanying Oracle verification call.

• Economic Impact: These are complex script interactions (Aiken Smart Contracts) that utilize block space and generate fees for Stake Pool Operators (SPOs), contributing directly to network sustainability.

2. Unlocking Institutional Liquidity (The RealFi Impact)

Cardano has technically superior DeFi primitives, yet it lags in Total Value Locked (TVL) from institutional sources compared to chains with mature compliance layers. Institutions cannot touch "Wild West" DeFi due to AML/sanctions risks.

• The Compliance Paradox: Current solutions force institutions to choose between using Cardano (and facing regulatory risk) or building private permissioned chains (fragmenting liquidity).

• Our Solution Impact: The Socious ZK-Oracle allows public Cardano dApps (DEXs, Lending Pools) to enforce regulatory rules (e.g., "Block Sanctioned Jurisdictions") without collecting user data.

• Ecosystem Result: This "Privacy-Preserving Compliance" removes the barrier to entry for Real World Assets (RWAs). It allows tokenized real estate, bonds, and corporate credit to flourish on Cardano Mainnet, bringing massive liquidity and utility to the chain.

3. Solving the "Plutocracy vs. Sybil" Governance Dilemma

Governance is the central pillar of Cardano (Voltaire Era). However, current voting mechanisms face a critical failure mode:

• 1 Token = 1 Vote: Leads to Plutocracy (Whale dominance).

• Quadratic Voting (1 Person = 1 Vote): Leads to Sybil Attacks (one person spinning up 100 wallets to game the system).

Our Solution Impact: By providing an API for Anonymous Uniqueness, we enable safe Quadratic Voting for the entire ecosystem (Project Catalyst, Intersect, independent DAOs).

• Sybil Defense: We allow DAOs to mathematically ensure 1 Person = 1 Vote using our "Nullifier" logic.

• Anti-Coercion: Because we use Zero-Knowledge proofs, voting remains private. This prevents vote-buying and coercion, protecting the integrity of Cardano’s decentralized governance.

4. Accelerating Developer Innovation (Open Source Impact)

This category focuses on "builders." We significantly reduce the barriers for new developers entering the ecosystem.

• Reducing Time-to-Market: Currently, a developer wanting to add Sybil resistance to their dApp must spend weeks learning cryptography, ZK-Snarks, and Identus standards. With the Socious SDK, they can implement Socious.Verify({ uniqueness: true }) in lines of code.

• Public Goods: We are committed to Open Source. All Aiken smart contracts and ZK circuit definitions produced in this pilot will be published under permissible licenses. This allows other identity providers to adopt our standards, fostering interoperability rather than vendor lock-in.

5. Enhancing Privacy as a Default

Privacy is a core value of the Cardano community (e.g., Midnight). However, privacy tools are often hard to use.

• Normalized Privacy: By embedding ZK verification into standard dApp flows (logging in, voting, trading), we normalize privacy-preserving behaviors. Users get utilized to proving attributes ("I am over 18") rather than revealing data ("Here is my date of birth").

• Data Minimization: We help dApp builders reduce their legal liability. By using our Oracle, a DeFi builder never has to touch user data (Passports/PII), saving them from GDPR/Data Protection liabilities.

Measure of Success for the Wider Community

We will consider this project a success for the community if we can demonstrate:

1. Interoperability: A user claiming a credential on Socious can use it to vote on a separate, third-party DAO interface (our "Reference Implementation").

2. Cost Efficiency: The gas fees for on-chain ZK verification are low enough that they do not price out users from participation.

3. Adoption: At least 2 external developer teams express interest in integrating the SDK during the feedback phase.

By funding this prototype, the community gains a foundational infrastructure primitive—a tool that allows every other builder on Cardano to create applications that are compliant, fair, and private by default.

[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?

Socious is not a new startup; we are a veteran Cardano builder with a production-ready platform.

• Cardano Integration Status: Our identity platform is built on Hyperledger Identus (formerly Atala PRISM) and is currently operational.
• Institutional Trust: We are a trusted partner of Intersect (Cardano governance), working with 14 major universities, and deploying solutions for Japanese companies.
• Safety Record: Zero security incidents or data breaches across four years of production operations.

Our team is aptly suited and equipped to successfully deliver this project. We possess the requisite capabilities that uniquely position us to execute this project to high standards of trust and accountability.

Socious is a fast-growing impact startup that provides a talent marketplace, making impact work accessible and transparent. We connect purpose-driven professionals with impact organizations through AI matching. We use blockchain to trace impact work and reward contributions.

Socious is supported by 500Global, Microsoft, and Milkomeda Foundation. Our platform lists over 100k jobs, 39k organizations, and has 16k registered users. Our team consists of experts in impact measurement, finance, data science, and blockchain development.

We have 10 full-time members and 20+ part-time contributors. Our team members include:

• Seira Yun

Title: Founder and CEO

Role: Product Ownership, Project Management, Research

Linkedin:

https://www.linkedin.com/in/seirayun/

Bio:

Seira Yun is a Cardano Ambassador and an ICC member. He is a serial impact entrepreneur and an impact angel investor with years of experience in the impact sector, leading teams within the ICRC, UNHCR, and social ventures. As a full-stack developer with a Master's degree in Social Innovation from the University of Cambridge, Seira enjoys blending technology with purpose. Upon exiting his first social venture in 2021, he founded Socious, a decentralized talent marketplace that uses blockchain for verified certificates and AI for matching individuals to meaningful jobs, eliminating background checks and fostering social and environmental change. He is also a board member at TELL, a suicide prevention non-profit. When not working, you can find Seira shooting hoops, running, reading, and spending quality time with his kids.

• Chrisanne Yee

Title: Founder’s Associate

Role: Project Management Assistant, Admin and Finance.

LinkedIn: https://www.linkedin.com/in/chrisanneyee/

Bio:

Chrisanne is trilingual in English, Chinese and Japanese. She has experience with marketing and business development. Chrisanne is an active Cardano community member and serves as an alternate to the Constitutional Convention in Argentina.

• Minh Douangprachanh

Title: Lead Designer

Role: Design

LinkedIn:

https://www.linkedin.com/in/michel-douang/

Bio: With more than a decade of experience specializing in product design, Minh is a multidisciplinary artist who has always believed art has a language of its own. As a neurodiverse individual, Minh is passionate about helping people and creating sustainable and inclusive solutions. Minh is a Cardano community member for the past 3 years.

• Ehsan Mahmoudi

Title: Lead Developer

Role: Backend/Blockchain/AI Engineering

LinkedIn:

https://linkedin.com/in/ehsan-mahmoudi-611123b8/

Bio: More than 8 years of experience in Python and Machine Learning as well as extensive experience in blockchain development. Ehsan has worked for global startups including Rechat, AEC, and Navaak. Ehsan is a Cardano community member for the past 3 years.

• Sanaz Mahmoudi

Title: Senior Frontend Developer

Role: Frontend Development

LinkedIn: https://www.linkedin.com/in/sanaz-mahmoudi/

Bio: An experienced frontend developer with 7+ years of experience. Sanaz is a Cardano community member for the past 2 years.

• Mohammad Balkhani

Title: Software Engineer

Role: Backend and DevOps Engineering

Commitment: Full-time

LinkedIn:

https://www.linkedin.com/in/mohammad-hosein-balkhani/

Bio: An experienced software engineer with 7+ years of experience. Mohammad is a Cardano community member for the past year.

The trustworthiness in our fund management processes is grounded in our serious adherence to legal and financial compliance. Each transaction conducted is meticulously documented with tangible evidence and audited internally for accuracy. To bolster our commitment to financial transparency, we have established collaborations with external accounting firms that assure compliance.

This meticulous, multilayered approach to fund management reflects our dedication to maintaining high levels of trust and accountability.

The feasibility of the proposed approach will be validated through a multi-pronged strategy that leverages our existing live platform and focuses on creating and testing key deliverables:

1. Building on Proven Foundations (Existing Product Validation):

   • The "Issuer" and "Holder" components of the architecture (users creating accounts and receiving Decentralized Identifiers/DIDs) are already operational on our live Web3 platform, app.socious.io. This eliminates the feasibility risk for the identity issuance side of the project.

   • Our commitment to Open Source allows community and technical reviewers to verify our existing work and technical capabilities at our public repository: [https://github\.com/socious\-io\.](https://github.com/socious-io`.)

2. Delivering and Testing the Core Technical Components (Prototype Validation):

   • Deliverable 1: The @socious/zk-oracle SDK (Client-Side Feasibility). The feasibility of the Zero-Knowledge Proof (ZKP) generation will be validated by successfully building this client-side SDK package and demonstrating its ability to generate a valid ZK Proof in the user's browser/wallet using an existing verifiable credential.

   • Deliverable 2: Open Source Aiken Contracts (On-Chain Feasibility). Feasibility will be proven by successfully deploying the highly optimized Aiken Smart Contract (the Oracle) to the Cardano Pre-Production Testnet and Mainnet. The contract must demonstrably verify the cryptography of the ZK Proof and return the required boolean (True/False) outcome to a calling dApp.

3. Real-World Demonstration and Stress Testing (Use Case Validation):

   • Deliverable 3: The "Mock DAO" Demo App. This is the ultimate proof of feasibility for the Sybil-Resistance use case. We will:

     • Create a publicly accessible URL where users can test the system.

     • Gamify the testing process by encouraging users to actively try to "break" the voting system using multiple wallets/bots.

     • The system is proven feasible if the Oracle successfully rejects duplicate votes by identifying the same Nullifier_Hash (derived from a single identity/credential), thereby providing a mathematical guarantee of uniqueness without exposing personal data.

[Milestones] Project Milestones

Milestone Title

ZK-Prover (Client SDK) Development

Milestone Outputs

Focus: Building the off-chain engine that generates the zero-knowledge proof.

1. Output (Deliverables):

   • A functional, local version of the @socious/zk-oracle NPM package.

   • Logic implementation to derive a Nullifier Hash from a Socious credential without revealing the user's DID.

   • Unit tests demonstrating the generation of a valid proof in a simulated client environment.

Acceptance Criteria

• The SDK can successfully take a credential input and output a valid ZK Proof string and Nullifier.

• The Nullifier is proven to be deterministic (generating the proof twice with the same credential yields the same Nullifier).

• Code is pushed to the GitHub repository (feature branch).

Evidence of Completion

• Video demo of the command-line interface (CLI) generating a proof.

• Link to the GitHub repository with the SDK source code and passing CI/CD test logs.

Delivery Month

3

Cost

60000

Progress

30 %

Milestone Title

Aiken Oracle Contract & Testnet Deployment

Milestone Outputs

Focus: Developing and deploying the verification logic on the Cardano Pre-Production Testnet.

1. Output (Deliverables):

   • Aiken Smart Contract written, optimized, and compiled.

   • Deployment of the Oracle Contract to the Cardano Pre-Production Testnet.

   • Verification script logic that returns True/False to calling dApps based on proof validity.

Acceptance Criteria

• The smart contract is live on the Pre-Production Testnet with a visible address.

• A test transaction successfully interacts with the Oracle, consuming a dummy ZK proof and executing the validation logic on-chain.

• The script execution cost (CPU/Mem steps) is benchmarked to ensure it fits within standard transaction limits.

Evidence of Completion

• Link to the Cardanoscan (Pre-Prod) URL of the deployed contract.

• Transaction hash of a successful "Verify Proof" interaction on-chain.

• Open-source Aiken code available for review on GitHub.

Delivery Month

6

Cost

60000

Progress

60 %

Milestone Title

"Mock DAO" Demo App (Reference Implementation)

Milestone Outputs

Focus: Connecting the pieces into a usable "Voting" DApp for user testing.

1. Output (Deliverables):

   • A web-based "Mock DAO" UI deployed to playground.socious.io (or similar).

   • Integration of the M1 SDK (Prover) into the frontend and connection to the M2 Oracle (Verifier).

   • Implementation of the "Anonymous Vote" flow: User Connects Wallet → Generates Proof → Submits Vote.

Acceptance Criteria

• Users can successfully cast a vote on the Testnet using a Socious credential.

• The user's wallet address does not appear in the vote payload (privacy verified).

• The system visually confirms the vote count has increased on the UI.

Evidence of Completion

• Public URL to the live Mock DAO DApp.

• Video walkthrough of a user casting an anonymous vote.

• Technical guide explaining the architecture of the reference implementation.

Delivery Month

9

Cost

40000

Progress

80 %

Milestone Title

Community "Sybil Challenge" & Stress Testing

Milestone Outputs

Focus: Gamified testing to validate security and gather feedback.

1. Output (Deliverables):

   • Launch of the "Sybil Challenge" campaign, inviting Catalyst/Aiken community members to try and double-vote.

   • Collection of Feedback & Bug Reports from testers.

   • Technical improvements/patches applied to the SDK or Contract based on testing results.

Acceptance Criteria

• At least 20 unique testnet wallets participate in the voting demo.

• The Oracle successfully rejects 100% of duplicate vote attempts (Sybil attacks) from the same underlying credential.

• A "Testnet Performance Report" is generated, analyzing transaction success rates and execution fees.

Evidence of Completion

• Link to the on-chain data showing rejected transactions (failed validations) for duplicate votes.

• Summary of community feedback and list of resolved issues/bugs.

Delivery Month

11

Cost

20000

Progress

90 %

Milestone Title

Documentation, SDK Release, & Final Report

Milestone Outputs

Focus: Gamified testing to validate security and gather feedback.

1. Output (Deliverables):

   • Launch of the "Sybil Challenge" campaign, inviting Catalyst/Aiken community members to try and double-vote.

   • Collection of Feedback & Bug Reports from testers.

   • Technical improvements/patches applied to the SDK or Contract based on testing results.

Acceptance Criteria

• Developers can install the SDK via npm install.

• Documentation includes full API references and copy-pasteable code snippets.

• The project repository includes a "Quick Start" Readme for running the entire stack locally.

Evidence of Completion

• Link to the NPM package page.

• Link to the public GitBook documentation.

• Final Close-out Video demonstrating the full achievements of the project. Uploaded to Youtube and publicly available.

• Final close-out report on Google Drive publicly available.

Cost: 20,000 ADA

Delivery Month

12

Cost

20000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Budget Summary

| Category | Allocation (ADA) | % of Total |

| --- | --- | --- |

| Blockchain & Backend Development | 94,000 ADA | 47.0% |

| Frontend Development & UI/UX | 40,000 ADA | 20.0% |

| Project Management & Ops | 26,000 ADA | 13.0% |

| Testing, QA & Security Review | 15,000 ADA | 7.5% |

| Infrastructure & Tooling | 5,000 ADA | 2.5% |

| Contingency (10%) | 20,000 ADA | 10.0% |

| TOTAL | 200,000 ADA | 100% |

---

Detailed Breakdown by Milestone

Note: The contingency is distributed across milestones to ensure each phase has a buffer for unexpected delays or volatility.

Milestone 1: ZK-Prover (Client SDK) Development

Total: 60,000 ADA

| Item | Description | Cost (ADA) |

| --- | --- | --- |

| ZK Circuit Engineering | Research, design, and implementation of the ZK circuit for credential verification. | 27,000 |

| SDK Architecture | Packaging the circuit into an NPM-installable library with TypeScript typings. | 18,000 |

| Unit Testing | Writing test suites for proof generation and nullifier determinism. | 5,000 |

| Project Management | Sprint planning, technical requirement definition. | 4,000 |

| Risk Buffer / Contingency | Reserved for circuit complexity handling or ADA fluctuation. | 6,000 |

Milestone 2: Aiken Oracle Contract & Testnet Deployment

Total: 60,000 ADA

| Item | Description | Cost (ADA) |

| --- | --- | --- |

| Aiken Contract Dev | Writing on-chain validator logic to verify ZK proofs and handle Nullifier storage. | 31,000 |

| Script Optimization | Tuning CPU/Memory steps to ensure low transaction fees. | 9,000 |

| Deployment Scripts | Automated scripts for Testnet deployment and interaction. | 9,000 |

| Project Management | Milestone reporting, GitHub repository management. | 5,000 |

| Risk Buffer / Contingency | Reserved for unexpected script size limits or optimization needs. | 6,000 |

Milestone 3: "Mock DAO" Demo App (Reference Implementation)

Total: 40,000 ADA

| Item | Description | Cost (ADA) |

| --- | --- | --- |

| Frontend Development | Building the "Mock DAO" voting interface and wallet connection logic. | 18,000 |

| SDK Integration | Wiring the M1 SDK into the browser for client-side proof generation. | 9,000 |

| UI/UX Design | Designing a clean, intuitive interface for the voting demo. | 4,000 |

| Infrastructure | Server costs for hosting the demo app and backend relayers. | 5,000 |

| Risk Buffer / Contingency | Reserved for frontend integration bugs or browser compatibility issues. | 4,000 |

Milestone 4: Community "Sybil Challenge" & Stress Testing

Total: 20,000 ADA

| Item | Description | Cost (ADA) |

| --- | --- | --- |

| Bug Fixing & Patching | Addressing issues reported by community testers. | 9,000 |

| Internal Audit | Internal security review of the smart contract logic. | 5,000 |

| Community Ops | Managing the "Sybil Challenge" and supporting testers. | 4,000 |

| Risk Buffer / Contingency | Reserved for critical bug fixes identified during stress testing. | 2,000 |

Milestone 5: Documentation, SDK Release, & Final Report

Total: 20,000 ADA

| Item | Description | Cost (ADA) |

| --- | --- | --- |

| Technical Documentation | Writing GitBook guides, API references, and tutorials. | 9,000 |

| Release Management | Finalizing NPM package and cleaning up GitHub repos. | 5,000 |

| Final Reporting | Creating the Project Close-out Report and Demo Video. | 4,000 |

| Risk Buffer / Contingency | Reserved for final polish or documentation revisions. | 2,000 |

[Final Pitch] Value for Money

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

Value for Money for the Cardano Ecosystem

Our proposal requests 200,000 ADA to deliver a production-ready Zero-Knowledge Identity Oracle. This represents exceptional value for money because we are not merely building a standalone application; we are building foundational infrastructure that unlocks privacy-preserving governance (Quadratic Funding) for the entire ecosystem.

1. High-ROI Infrastructure Investment (The Multiplier Effect)

The primary value of this proposal lies in its open-source SDK approach. By packaging complex ZK circuits and Aiken validation logic into an easy-to-use NPM library (@socious/zk-oracle), we dramatically lower the barrier to entry for future developers.

• Cost Savings for the Ecosystem: Instead of every DAO building their own identity layer (costing ~200k ADA each time), they can integrate our verified solution in minutes.

• Enabling "Voltaire" Goals: We provide the technical rails necessary for Intersect and Catalyst to implement true "One-Person-One-Vote" and Quadratic Funding without sacrificing user privacy or decentralization.

1. Cost-Efficient Technical Specialization

Zero-Knowledge (ZK) circuit engineering and Aiken smart contract optimization are highly specialized skills that command premium market rates.

• Allocating 47% (94,000 ADA) of the budget directly to Backend and Blockchain engineering ensures the core technology is robust.

• Optimization Focused: We have dedicated budget lines for script optimization (Milestone 2) to ensure that while development costs are fixed, the operating costs (transaction fees) for future users remain minimal. We are absorbing the R&D cost so the community doesn't pay high execution fees later.

1. Professional Risk Management

We have structured the budget to ensure delivery reliability, protecting the community's investment:

• Distributed Contingency: Rather than a vague "slush fund," our 10% contingency (20,000 ADA) is allocated across specific milestones to handle known risks (e.g., circuit complexity in M1, browser compatibility in M3).

• Real-World Stress Testing: We have allocated resources specifically for managing a public "Sybil Challenge" (Milestone 4). This budget covers the engineering and operational hours required to coordinate the public testing phase, triage incoming bug reports in real-time, and patch vulnerabilities before mainnet launch.

1. Transparent Budget Breakdown

Our 200,000 ADA budget is allocated to maximize technical output while maintaining operational rigor:

• Blockchain & Backend (47% - 94,000 ADA): ZK Circuit design, Aiken contract dev, and SDK architecture.

• Frontend & UI/UX (20% - 40,000 ADA): "Mock DAO" voting interface and wallet integration.

• Project Management & Ops (13% - 26,000 ADA): Sprint planning, reporting, and GitHub repository management.

• Testing, QA & Security (7.5% - 15,000 ADA): Unit testing, internal audits, and coordinating the public Sybil Challenge.

• Infrastructure (2.5% - 5,000 ADA): Server costs and hosting.

• Contingency (10% - 20,000 ADA): Buffers for volatility and unexpected technical hurdles.

By delivering a documented, stress-tested, and open-source ZK protocol, Socious ensures that every ADA spent translates into lasting utility for the Cardano governance ecosystem.

[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