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ATALA Prism Basic Income Protocol

$29,500.00 Requested
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Problem:

Lift humans around the world from poverty and reduce the impact of inflation on life savings using Defi and Atala Prism

Challenge: F8: Accelerate Decentralized Identity
unfunded Requested 5.9% of the fund.
Community Advisor Reviews:
3.5 (12)
Yes Votes:
₳ 29,744,398
No Votes:
₳ 6,796,780
Unique Wallets:
90

Experience

15 years in Web 2.0, currently a software architect at a silicon-valley startup, experience in Engineering, Product and Customer Success. This includes 6 years at Instacart as a Sr. Solutions Architect working with complex enterprise, payment systems, high throughput Web apps.

Solution

Create a DAO token which will be pegged to Consumer Price Index, treasury would be invested in Defi and share profits with holders & humans.

[IMPACT]

Summarize your solution to the problem

Create a DAO token which will be pegged to Consumer Price Index, treasury would be invested in Defi and share profits with holders & humans.

Summarize your relevant experience

15 years in Web 2.0, currently a software architect at a silicon-valley startup, experience in Engineering, Product and Customer Success. This includes 6 years at Instacart as a Sr. Solutions Architect working with complex enterprise, payment systems, high throughput Web apps.

Website/GitHub repository (if relevant) https://www.linkedin.com/in/abhiroop-sharma Requested funds in USD 29500 [IMPACT] Please describe your proposed solution.

This proposal outlines a reserve currency protocol which would be pegged to the Consumer Price Index via on-chain oracles. The DAO will be open-source and a non-profit organization. The DAO will use its treasury to earn yield in various defi protocols by providing liquidity, staking (ve) tokens, yield farming in multiple chains via multi-sig wallets. The income from those investments would be distributed between the token holders and ubi recipients. A mobile app would be developed which would tie the human to the UBI wallet via Atala Prism. The token holders will be able to vote on investments as well as earn bonuses for sharing yield strategies with the protocol.

The tokenomics will be similar to OlympusDAO on Ethereum, and it is an inspiration for this protocol. The rebase rate of the currency will be pegged to cpi data from on-chain oracles like Wolfram Alpha and Chainlink. This would be updated once a month and the token holders vote on the data source. This creates a reserve currency which is looking to counter inflation while also providing those a potential source of supplemental income.

The mobile app will implement Atala Prism for identity, and by partnering with payment solutions like ADAPay be able to execute one tap payment directly from the mobile app to the supporting grocery stores. The payment to the UBI wallet would be periodic and would expire if unused, this creates an incentive to spend which is the entire purpose of the protocol.

As the treasury grows over time, the procotcol can provide more and more consistent basic income to all participants. We would look to tie up with communities and governments in Africa where Cardano is very active at first. With other projects like WMT looking to bridge the internet divide this could create a perfect storm of opportunity for a decentralized, transparent and open-source protocol to attempt to provide universal basic income using the Cardano blockchain.

Please describe how your proposed solution will address the challenge?

The following are the metrics from the challenge page, and also how the proposal aims to help meet them for Catalyst

  1. The sum of realized production pilots or launches in 2022 : The DAO will launch in 2022

  2. Discovery of repeatable patterns in use-cases : One-touch payments with Atala prism could unlock many retail and B2C interaction patterns

  3. The number of issuers, holders, and verifiers : The mobile app will be free to download and try and would look to pay out periodically, this should see a huge adoption with correct marketing and outreach programs.

4. The number of verifications performed on credentials in production : There would be multiple retail transactions per month requiring authentication to pay for goods and services at stores.

What main challenges or risks do you foresee to deliver this project successfully?

  1. Crypto is inherently volatile, and this adds risk of token value fluctuating and leading to a bad user experience. This could be mitigated partially by adding a stablecoin to the ecosystem in the future.

  2. Legal / Tax hurdles for users accepting basic income based on local / country regulations

  3. Treasury not being large enough to pay any significant amount of basic income to a large number of holders due to not enough interest in a cpi-pegged reserve currency

[FEASIBILITY] Please provide a detailed plan and timeline for delivering the solution.

The DAO backlog will be worked in quarterly phases, here is the current plan

Phase 0 | Q2 2022:

  1. Pick DAO Name: everCrypt is a placeholder name, please suggest a name for the DAO! Join our discord

  2. Finalize Proposal & Litepaper

  3. Find more collaborators - Please join and help this DAO become a reality

  4. Design Work and Static Website

Phase 1 | Q3 2022:

  1. Core reserve currency protocol implementation :This will be most of the work in this phase, ensuring we have a solid foundation for the future of the protocol. Having access to existing open source projects will help speed up the protocol design

  2. DApp : Build out the core DApp to interact with the protocol and integrate with the static website.

  3. Basic DAO Governance implementation: Discord Bot based voting and user verification

  4. Audit, Certification & KYC : Big risk in meeting timelines as it involves external firms.

  5. Legal formalities : DAO must be registered legal entity before launch

  6. Testnet release by end of Q3

Phase 2 | Q4 2022:

  1. Mainnet release by early Q4

  2. Basic Income Android App launch with Atala Prism

  3. Formation of independent, multi-sig working groups that manage specific aspect of the platform.

  4. Investment Treasury partial automation - Daily data harvesting automation as well as yield strategy suggestions. Voting on investments by token holders

Phase 3 | Q1 2023

  1. Partnerships with Payment Providers

  2. Partnership Retail Chains \ Grocery Stores

  3. Grass roots adoption work in identified regions like Africa

  4. Protocol integration with Stablecoin

Phase 4 | Q1 2023

  1. Bond NFTs - Long term bonds which can be traded in secondary markets

  2. Lending/Borrowing using bonds as collateral

  3. Low interest micro-lending with partial ( or no ) collateral to UBI holders

  4. Further decentralization of governance

  5. Cross-chain Treasury partial automation

Please provide a detailed budget breakdown.

The aim is to reach self-sufficiency by the end of Phase 2 and current estimates are based on a rate of $70 / hour for Builders ( Developers ) and $35 / hour for Supporters.

  1. Full Stack Developer - 200 hours - $14,000

  2. Android App Developer - 100 hours - $7,000

  3. Community Manager \ Marketing - 100 hours - $3,500

  4. Administration and Hosting expenses - $5,000

Treasury Liquidity Bootstrap - at the discretion of Catalyst, this would really help start the investment and income cycle faster helping onboard more users.

Please provide details of your team members required to complete the project.

I am looking for co-proposers  and contributors who would be willing to work on this with me. Please join our discord https://discord.gg/NUwDwueD

[AUDITABILITY] Please describe how you will measure the progress and the development of the project?

I have experience as a Product Manager and I am hoping to use a simple Agile backlog to manage the deliverables in sprints of 2 weeks. User stories will be written ahead of sprint start and will be sized to be consumable in 1 sprint ( as much as possible ).

What does success for this project look like?

  1. Become the most downloaded crypto mobile app on Android play store

  2. Rebase rate never de-pegs from agreed CPI index

  3. Provides basic income ( to some degree ) to atleast 1 million humans across multiple countries

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

No

SDG Rating SDG rating

SDG goals:

Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Goal 3. Ensure healthy lives and promote well-being for all at all ages

Goal 5. Achieve gender equality and empower all women and girls

Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

SDG subgoals:

1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance

2.1 By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round

8.1 Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries

Key Performance Indicator (KPI):

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

1.2.1 Proportion of population living below the national poverty line, by sex and age

8.1.1 Annual growth rate of real GDP per capita

1.4.1 Proportion of population living in households with access to basic services

1.2.2 Proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

2.1.1 Prevalence of undernourishment\n\n\n\n\n\n

Community Advisor Reviews

Addresses Challenge

4.3 / 5
4 Reviews

Does the proposal effectively addresses the challenge?

Community Reviews (4)

Commenter gravatar
April 13, 2022

Yes, this proposal effectively addresses the challenge. The proposer does a good job at identifying the specific components of the challenge brief they are hoping to address, primarily: launches in 2022, discovery of repeatable patters, number of issuers/verifiers, and number of verifications performed.

First off, I want to commend the proposers on an innovative idea that has the potential to deliver sustainable universal-basic-income (UBI) solutions. The creation of a DAO that is open source and non-profit will allow a large collective of people to grow and participate. Through the DAO, members will be included in investment decisions and earn rewards for participating. The treasury would then follow the decision of the DAO and make the corresponding investments, after which, all members of the DAO would receive some sort of payout from the profits.

Second, I think the team brings in an interesting aspect to this proposal by pegging the reserve currency to the consumer price index which would be verified by on-chain oracles. This type of autonomous information gathering will ensure that the indexed price remains static and reliable, with clear intervals at which it will be updated. The use of oracles in this way is interesting and I would have liked more details to be provided on the specifics.

If the team is successful and is able to structure the DAO in this way, and show that a UBI is possible through this proof-of-concept, then the impact would likely be significant on the community.

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April 13, 2022

Project aims to accelerate the adoption of decentralized identity by offering universal basic income (UBI). But the proposal doesn’t seem very strong as it does not have a very concrete plan on how to raise enough funding to provide UBI for a meaningful number of people in order to drive adoption of DID. Just an example here, let’s say the goal is to provide $12,000 a year per person and an average return of 5%. That would mean $240,000 in the endowment fund to provide basic income to one person to onboard to Cardano and DID.

While it is a noble goal, perhaps it does not drive the adoption of DID as well as one might hope. The proposal is also very focused on how UBI could work with Cardano and existing projects so it might be better off under another challenge category and maybe consider teaming up with other proposals as I’ve seen some myself too.

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April 13, 2022

This is a fascinating high-concept proposal that introduces a "reserve currency DAO" that aims to pay out a universal basic income stipend to DID holders who participate in the protocol. At its heart is the idea of a DAO that uses a basket of assets (in this case a basket pegged to indicators that form the CPI: the main measurement of official "inflation" areas in the US) to back a token, which in turn is bought and sold within the DAO to maintain a pegged value of another token that functions as a stablecoin. A similar protocol which inspires this proposal is OlympusDAO, so there is plenty of research a voter can do to understand the finer, technical points. The upshot is that extreme yields of the stablecoin can be generated, much like treasury bonds if bonds were held and never sold or used as collateral or rehypothecated. Because the blockchain means rehypothecation (double-spend) can't happen, and because DAO governance can create holding periods (usually 5 days), there are theoretical base yields that can always be realized, and herein lies an approach for UBI. Where the AtalaPRISM protocol comes in is to create an identity layer for the delivery of the "bonds" in this case UBI stipends. Initally these would be low, but participation in governance would allow users to "work" and make the UBI higher. In this case the "work" would be voting on parameters like how often the inflation snapshot is taken, which inflationary indicators are taken into account, and could be scaled to include integration with shopping apps and Adapay, which would create hyperlocalized inflation metrics, where the participants normal economic behavior informs the parameters and helps dial in the best yields for the bonding mechanism. Governance is critical, and the community that gathers around implementations of this DAO are the source of that governance, so it is very intriguing to what Cardano in emerging markets could accomplish. If it comes anywhere close to matching OlympusDAO in growth, then we are talking exponentially adding PRISM wallets and protocols to the chain. There are some concerns about how deflationary circumstances affect this idea, but it needs to be noted that the yield requires only movement, not movement of a particular direction: if the governance protocol correctly accounts for this, they can move from an inflationary basket peg to a deflationary one…and with a community discovering and voting, there is a real chance that this critical piece of information is far more accurate than any ossified legacy institution's politicized metrics.

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April 13, 2022

This project would accelerate Atala and D-IDs, however there are several large assumptions that are not fully addressed. Mainly the retailer adoption, there isn't anything mentioned for a plan to acquire these businesses into the network. Additionally the income is not specified outside of CPI correlation to create a commodity stablecoin. This Basic Income project would be a wonderful addition, though currently it is a rough gem that needs polish.

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Feasibility

3.5 / 5
4 Reviews

Given experience and plan presented is likely that this proposal will be implemented successfully?

Community Reviews (4)

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April 13, 2022

Yes, given the experience and plan presented, it is likely that this proposal will be implemented successfully. The team does a good job at breaking down this monumental task into smaller quarterly milestones with deliverables. Their initial efforts will focus on getting the DAO, tokenomics, and overarching plan structured and in the hands of members to refine the material. The development of their litepaper will help answer some of the outstanding questions so I would have liked to see more of a skeletal outline for the litepaper (even just broad headings).

The majority of the work will come in Q3 2022 where the team will implement the reserve currency protocol, and they will use existing open source protocol designs to avoid duplication of work. This adds some weight to the feasibility of the project because they can identify which protocol works the best for their case. However, the feasibility is somewhat called into question given the reliance on outside entities for its completion. Additional detail should be provided regarding the process to make the DAO a legal entity as well as the audit and certification permissions. I appreciate that the team admits these can impact the timelines but more could be shared regarding the plan to pass these milestones.

One final issue that may challenge the feasibility of the project is finding other likeminded individuals who are motivated to work on the project. As it stands, it currently seems like a one-person team that is trying to expand, however there is no strategy for attracting more individuals other than a call to participate. I think a little more forethought into the types of people you are looking for and for which items would strengthen this section.

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April 13, 2022

There is little chance of one person completing all of this roadmap on time. There isn't any description of how this project would hire or find the listed talent. Full Stack development isn't enough for a complete Cardano protocol. Nor is only 200 hours for the core code. The roadmap does mention third party delays, yet is underestimating these delays. The largest question in implementation is how the treasury will be funded, outside of grants and donation. There is an abundance of detail in this plan, it is well thought out. However there needs to also be traction. Realistic stepping stones that can be used to build a mountain of adoption.

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April 13, 2022

Proposer has a lot of experience in very senior roles at Instacart and Workato so it would no doubt be very helpful and could probably build all that he wants to. Proposal is also very meticulous in the breakdown of the work required and timelines.

One thing to note however is that it is currently a one man show, so it does seem like a lot of work to carry out. The discord invite for potential collaborators put in the proposal has also expired so I can’t say how many potential collaborators he might have found.

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April 13, 2022

With a model of this idea already running on Ethereum, with a dedicated community and loads of communication, it should not be hard for the proposer to work up a model for executing on Cardano. The integration of PRISM will require some hands on knowledge, and the (very reasonable) budget makes room for team members for this job. Creating the governance protocols is the heaviest lift, as they need to be rock solid to avoid exploits. Using the DIDs to avoid sybil is the first step, building out specific protocols in smart contracts would be the next step. There is no doubt that the initial discovery and design process is critical, and the proposer has dedicated two phases to this, with the second phase taking an emergent approach to applying early design decisions. There is a good timeline of actionable items, from simple things like creating a name and building out a community, to compex deliverables like integrating DIDs or data harvesting automation. Many things have been considered and room has been left for the (many!) emergent qualities that will need to be discovered. There are risks beyond just typical crypto volatility concerns: there are certain assumptions built into the OlympusDAO model, things like burying the us dollar under the DAI token, and thus considering that a disconnect from dollar problems in the stablecoin, but it is still there, lurking two tokens away. Additionally, deflation (real deflation which isn't accurately understood in Capital E Economics…an offshore shadow money phenomenon) may require more than governance gymnastics to avoid, with real potential to wipe out multiple levels of treasury issuance. But these problems can't be solved without a deeper engagement with the principles involved, and a measured, thoughtful approach, over a WenDAO? mindset is encouraged for the proposer.

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Auditability

2.8 / 5
4 Reviews

Does the proposal provides sufficient information to assess and audit progress and completion?

Community Reviews (4)

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April 13, 2022

Unfortunately, the information provided is neither sufficient nor insufficient to audit the progress and success of the proposal. To audit the proposal the proposer commits to using a simple agile backlog to manage deliverables in 2 week sprints. They will then issue written user stories ahead of the sprint start. However, what they will actually be measuring in the backlog and what the user stories will include/focus on is unclear. There is also no indication of how many user stories will be needed.

Another issue which voters may take here is the KPIs/success measurements provided. There are no real KPIs highlighted and the success measurements are abstract and highly idealistic. Other than the stories stated above, it is unclear what sort of indicators would be used in the proposal. With a heavy focus on the website and dApp, I would have suspected that these would be tangible measurements for the project (number of users, visits, transactions etc..) but they are not included. In addition, the success measurements to "become the most downloaded crypto mobile app on Android store" and "provides basic income (of some degree) to at least 1 million humans across multiple countries" really are not tangible. For example, do you mean most downloaded of all time? Within a particular time frame? How much income equates to "to some degree"? and what if you don't reach one million people? Is it a failure?

The proposal is strong and is on the right path with some innovative thinking, however more information is needed in this section to increase the score.

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April 13, 2022

This spot is always the most difficult section of proposals. However, this is unrealistic, has no timeframe, and isn't easy to verify. These goals need more work and definition. Needs to be measurable, and have a source to verify progress. Voters should be able to look back and find an obvious goal that is being worked toward.

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April 13, 2022

The proposal is a little vague in this regard, it did not mention if the code will be open source for inspection but only mentioned that it would be broken down into 1-2 weeks worth of work, which I presume he could update the community on?

Maybe unrealistic but there is ambition in his goals and wants to be the most downloaded crypto mobile app on android which can be tracked and to provide basic income to 1 million people.

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April 13, 2022

The roadmap, as well as a roadmap could be realized for something with this many emergent qualities, is clear and well laid out, beginning with a phase 0. The final iteration is murky, but that is to be expected, as the design will determine a lot of that, and the design is going to be emergent. It would be nice to see a test-net rollout schedule for a few of the items, particularly the PRISM integration, and SC involved in the DAO governance. An early litepaper that can be rolled up later into a full whitepaper is a critical early deliverable, and probably defines the website design, alongside onboarding DID participants. There will need to be a tokenomics, probably iterated in the DAO governance, but a litepaper should be issued for that as well. All the work will be trackable on GitHub and the Agile framework (sprints, user stories) means that auditable protocols can be defined for the monthly progress reports. The main success metrics included in the proposal are…interesting. But one can look closer to home for real success and impact, and forgo static numbers in some far off future: does the adoption of UBI DIDs have a good rate of increase or decrease? What participation rates are we seeing with the voting protocols? Is the UBI yield keeping up with participation rates? When in an inflationary mode, how well is it tracking with things like CPI reports or CPI tracking ETFs?

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