Decentralized Token Distribution

A decentralized alternative that entities can use to distribute tokens for projects or themselves and users can claim tokens at low cost.

Many years experience in software and scientific research & collaboration.

• 10+ Years Software Development.
• Smart Contract & Defi developer.
• PhD Mathematical Physics, BSc Computer Science.
• SPO
• Catalyst 7 funded project - Infinity
• Plutus pioneer & Atala Prism pioneer (cohort 2)

[IMPACT]

Introduction and background to the problem:

Native assets on Cardano are a relatively new topic. Currently for projects, individuals and stake pools to distribute native assets like tokens, NFT’s etc, requires the use of third parties that are currently centralized, or building their own mechanism which increases cost and complexity. For users to claim tokens also requires interacting with a centralized entity that likely charges a fee. Projects and stake pools offering tokens for incentives need an easy way for delegators to claim tokens and an easy way to distribute them. This proposal sets out the framework for a decentralized solution to native asset distribution that enables individuals, SPO’s and projects to have more control over the mechanism of distribution and claiming, removing complexity and reducing costs.

The Solution:

An application that entities (SPO’s or projects) can use to distribute assets. The package will include tools to be able to read the state of the blockchain, calculate delegation amounts for addresses and distribute tokens accordingly. A mechanism where projects can allocate parcels of tokens to selected stake pools for distribution. A mechanism where users can claim tokens and for it to cost as little as possible. Proposal whitepaper for extended detail is attached.

What this means for the ecosystem:

Having a decentralized way to distribute native assets means that projects do not have to worry about choosing a distribution provider that potentially increases costs to themselves and their supporters. Projects or businesses simply choose which pools they would like to distribute through (it could be as little as one or many). For the individual claiming tokens, they are provided a service on behalf of stake pool operators. For SPO’s, this is a product that can be offered to their delegation, any rewards or proceeds for providing the service, stays in the hands of the stake pools which would be in their best interest to give back to their delegators. This creates a self-sustaining ecosystem that rewards delegators for project support, and gives the reward for distribution back to the community.

Making supporting projects simple drives adoption through usability. An ecosystem that supports itself and the people and business built on top of it encourages healthy and sustainable growth. This proposal addresses a problem in the current ecosystem, a lack of decentralized native asset distribution. It solves this problem with the use of software that integrates into already existing infrastructure. It leverages the knowledge of stake pool operators who are already competent in maintaining a network and are trusted by the community. The solution includes technologies such as multi signature transactions and smart contracts for trust mechanisms, and builds upon a proven foundation that is the Cardano network.

This project requires a clear technical understanding of Cardano node, Plutus, database technology and blockchain security measures. Therefore risks may come in the form of vulnerabilities to the application in terms of security and a loss of team members who have deep knowledge of the project and technical ability. We have planned for these by an audit and testing period and having a close-knit team of dedicated and highly skilled developers. In the testing phase SPOs can test the application and provide feedback. We have planned (in the project timeline) to have a period of security audits on smart contracts and the code base.

[FEASIBILITY]

The project is broken down into phases:

• Planning Phase: May 1 - Jun 12
• Execution Phase: Jun 13 - Oct 19
• Web Development: Jul 1 - Sep 31
• Testing & Auditing: Oct 22 - Dec 10
• Launch & Review: Dec 10 - Dec 31

Please see the attached project schedule gantt chart for a visual representation.

Developer Expenses:

• Planning Phase 11,831.01
• Execution Phase 35,493.02
• Testing Phase 13,756.99
• Deployment Phase 4,402.24

VPS & IT services:

• Planning Phase 680.29
• Execution Phase 6,802.90
• Testing Phase 2,966.38
• Deployment Phase 675.02
• Web Development Phase 6,328.21

Total Project Cost 82,936.06

Please see the attached project schedule for more detailed breakdown per subtask within each phase.

Smart Contract & Defi developer, PhD Mathematical Physics, BSc Computer Science, SPO, Catalyst 7 funded, Plutus Pioneer.

https://www.linkedin.com/in/antony-burrows-8160601b6/

[AUDITABILITY]

The project is broken down into phases. The schedule of the project outlines major milestones and parts of the execution and deployment phases that have dependencies. Progress can be measured by the project's developers to stay on schedule and complete activities. For example in the Execution phase is split in to submodules. Regular updates will be given on the status of the activities in the project timeline so the community and Catalyst can measure progress. One of the major KPI’s will be a beta release milestone for testing.

Success is ultimately measured by adoption of the product and the services it provides. This application is targeted at offered to stake pools not only as a tool, but also as another source of incentive and revenue to their delegation. The cost of running this application on a stake pool is only in the extra resources that will be required on a single node. The benefit to the delegation and to the overall community lies in the fact that it puts control of distribution of native assets back in the hands of the community. The application and service it provides will make it easier to claim tokens and for projects to offer tokens.

This proposal will leverage some* of the infrastructure on the Infinity project, funded in Catalyst 7. However, this application is a separate package within the Infinity framework and should be seen as a separate project as it can be run on its own.

*some core technologies build into the core code of Infinity.