DADF - Disruptive Comm. Application

[GENERAL] Summarize your solution to the problem.

A framework for the deployment of digital equity tokens on the Cardano blockchain that has the support of regulators, digital exchanges, companies, lawyers, accountants and investors. 

[GENERAL] Summarize your relevant experience.

Shaun Cumby has worked in trading and portfolio management for over 20 years across many asset classes, including asset-backed securities, credit default swaps, bank loans, equities and derivatives. 

[GENERAL] Requested funds in USD.

[IMPACT] Please describe your proposed solution.

Key Points

• The first phase of our proposed technology roadmap for the Digital Asset Disclosure Framework (DADF).
• The DADF aims to create a framework for successful deployment of digital equity tokens on the Cardano blockchain in a regulatory compliant manner that has the support of regulators, digital exchanges, companies, lawyers, accountants and investors.
• The technology development will require creation of a token-issuing framework in Cardano that supports fungible tokens that can be minted, burned, transferred or re-based—all of the mechanisms found in traditional equity issuance. This will require immutable on-chain events and additional off-chain data storage for items like required regulatory disclosures.
• The Wolfram Language technology and Cardano blockchain ledger will allow regulators to monitor required disclosures and transactions with tools and techniques that make regulatory compliance and surveillance far more efficient and accessible.   
• The DADF could be licensed globally to digital asset exchanges to support the vast majority of corporations that are smaller than those that raise capital on the NYSE, NASDAQ or TSX. This would strongly encourage digital exchanges to become Cardano-blockchain compliant.

Digital equity tokens can allow small- and medium-sized businesses to access capital effectively; however, current implementations have not succeeded. This is a result of fragmented platform policies, weak regulatory support and a poor disclosure framework desired by regulators and investors. 

We are proposing an innovative technology and policy framework that can transform how companies access capital and how investors can have access to these companies. 

The CEO of the framework, Shaun Cumby, has extensive experience between securities based on prospectus offering and a strong understanding of blockchain technology, the Wolfram Language and the needs of regulators, exchanges, companies and investors. 

He has met with digital exchanges, traditional exchanges, law firms, accounting firms and regulators in both the US and Canada. A large law firm in Canada has committed to the project, and we are in discussions with a Big Four accounting firm. These partners will focus on the policy aspects of the DADF that need to be regulatory compliant while also creating the electronic forms for companies to stay in continuous compliance in a timely and cost-effective manner.

A token-based implementation of required disclosure documents and prospectus, featuring immutable public records of required events and off-chain storage of document details.Tools to assist regulators in market surveillance and continuous disclosure monitoring

• Tools to sort, query and filter
• Visualizations of network graphs and timelines of events
• Tools to monitor corporate filings for timeliness, quality of reporting and financial health

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

The disclosure of financial reporting, particularly on a continuous basis, has been a challenge for regulators, companies and investors in the SME and digital-asset space. DADF seeks to address the parties’ concerns with a framework that is completely electronic. 

The immutability of the Cardano blockchain combined with the amazing technology of the Wolfram Language will allow us to create something with profound impact and global scale.

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

There are technical issues to execute on this project. While we have already created a working outline, there are aspects of this project both Shaun and Wolfram have not executed before. In addition, this proposal only covers a portion of the imagined final project, and we will come back to Catalyst and other sources for additional funding to complete it in entirety.

Possible risks:

• No Cardano community support
• Technical adjustments that have to executed in order to complete aspects of the project.

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

Timeline

This phase of the technology plan will be six months.

Month 1: Create detailed plans for Cardano blockchain support of token mechanics

Months 2, 3, 4: Build and test the technology

Months 5, 6: Apply the technology to a case study and present it to regulators and policy partners

[FEASIBILITY] Please provide a detailed budget breakdown.

Financial

Wolfram will receive the bulk of the grant funding to support development costs of using their world-class technologies to build the disclosure and monitoring systems described above in a manner that will support the future policy-integrated needs of DADF.

A small portion of the grant will be used to support an intern who will be tasked with the development of the case study and the presentation to regulators in Canada and the US.

[FEASIBILITY] Please provide details of the people who will work on the project.

Jason Cawley Director, Wolfram Solutions

https://www.linkedin.com/in/jason-cawley-698b5139/

Shaun Cumby

https://www.linkedin.com/in/shaun-cumby-a34b81b1/

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

Yes. Although we are actively exploring other sources of funding, we may also return to Catalyst for additional funding.

[FEASIBILITY] Are you or any member of your team working on any other proposals in this Fund9?

[FEASIBILITY] Are you or your team working on any other proposals from previous Funds?

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

The CEO of DADF, Shaun Cumby, will build a milestone timeline that maps to DADF’s timeline to integrate the technology development with the policy development. The team will have a weekly review meeting and a deep dive on a monthly basis.

[AUDITABILITY] What does success for this project look like?

A small, simple company currently listed on the Venture Exchange (TSXV) in Canada will be selected as a case study for the application of the technology to demonstrate that Cardano’s blockchain and the Wolfram Language can deliver, at a high level, the minimum viable product (MVP). The MVP will demonstrate the digital equity token creation and functionality and the ability to embed a simplified prospectus that is on the blockchain.  

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

This is a new proposal.