Last updated a year ago
Fake or scam projects are a common cause of concern. Scammers mint fake tokens that mimic tokens from popular and legit projects and trick users into buying them.
Establishing a verification standard that is easily accessible by users and developers and protects the Cardano community from fake projects.
This is the total amount allocated to A standard for token verification. 4 out of 4 milestones are completed.
1/4
Community outreach and project outline
Cost: ₳ 3,300
Delivery: Month 2 - Jan 2023
2/4
Development focusing on the smart contracts necessary for decentralized token verification
Cost: ₳ 6,233
Delivery: Month 4 - Mar 2023
3/4
Ongoing backend and frontend development
Cost: ₳ 6,233
Delivery: Month 5 - Apr 2023
4/4
Completion of the token verification project
Cost: ₳ 6,234
Delivery: Month 7 - Jun 2023
On most DEXes on Cardano, everybody can list their tokens and create liquidity pools without additional registration. In general, we want to keep the opportunity to trade open for everyone, allowing for greater flexibility and decentralization. However, we have to be careful as this also poses the risk of fake projects going unnoticed.
At MuesliSwap we have started a process where projects register to get verified. During the verification process, we check whether the policy-id of a project is legit and also displayed on the website of a project. Additionally, we require projects to publicly display certain information like a token description and tokenomics/distribution.
Verification is not a gateway to being tradeable via MuesliSwap. A non-verified token is simply per-default marked as such, but may still be traded. Having no visual warning about the state of a token can only be achieved by becoming manually verified. Scam tokens may be additionally tagged in extreme cases. This protects our users from fake projects and also ensures that everybody can easily verify the policyID themselves.
We would like to extend our current approach by establishing a verification standard, that can be accessed and used by all projects building on Cardano.
In detail, we will create and maintain a website with a transparent verification process.
Projects can submit their tokens to be verified, while developers and users can browse the website or use the corresponding API endpoints.
The project will result in a consistent API that may be used by developers of DApps and end-users alike to check for flagged, verified, or unknown tokens.
Having a token verification standard that is accessible by everybody leads to more security and greater trust in projects that are submitted to the verification process. We have received overwhelming feedback from our own users regarding this service and want to extend it to other platforms. We are confident that this will be a valuable service to the whole community of users and developers.
Since the verification process, we have in place has already been successful itself, we are confident that we will be able to extend it to the degree described in the proposal. The main risk is low adoption. We will mitigate this by using the reach of our own community and our inclusion in the Cardano DeFi Alliance to popularize the usage of the service. Also we will not encounter any budget problems as any extra costs will be covered by the MuesliSwap team. As we have a big development team we will also not encounter any risks like development staff leaving the team.
Development: (1 month)
Community Outreach, spreading awareness: (2 Weeks)
Maintenance: (Open end)
Development: (100 hours, 10000 USD)
Community outreach, marketing: (25 hours, 2000 USD)
Maintenance: (Open end, 10000 USD)
The MuesliSwap development team will work on this project. The MuesliSwap development team currently consists of 9 developers with experience in different fields from which most are long-standing Cardano community members. With Muesliswap being the first major DAapp launching in November 2021 the team has gained a lot of experience in developing on Cardano.
We are not planning to return for further funding in a later round for that specific project. The remaining costs of maintaining the service are planned to be covered by the MuesliSwap team and a small verification fee of 50 ADA.
The development progress will be verifiable on the website itself and shared via our social media channels.
As the repository behind the verification will be open-source, anyone can track the order and content of the verification database and verify that submissions are processed correctly.
This project is successful whenever it allows somebody to verify a token, increasing the trust in projects on Cardano.
We are confident that this will be a great service for the community and hope that it establishes a new security standard and more awareness of fake projects in general.
No
NB: Monthly reporting was deprecated from January 2024 and replaced fully by the Milestones Program framework. Learn more here
The team behind MuesliSwap, one of the biggest Decentralized Apps on Cardano. As developers of the DeFi infrastructure, we have experience with all relevant aspects of Cardano.