[IMPACT] Please describe your proposed solution.
Develop the legal and financial framework to allow on-chain purchases of physical products. This requires a roadmap for establishing token-based enterprises on the Cardano network.
With the correct legal and financial implementation, a blockchain based business can be constructed consisting of an online marketplace which supplies physical products for exchange of ADA or a supported native token. This framework allows the Cardano community to engage with a decentralised business ecosystem.
Contact has been established with well-regarded specialised cryptocurrency accountants and law firm and Lawyers in Australia, members of which advise and direct local government bodies on blockchain and cryptocurrency related laws. An agreement has been made to support our project in verifying the correct legal and financial framework, token classification and entity establishment essential to the growth of the Cardano network.
[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.
This challenge will help funded projects to establish the legal and financial framework to operate and comply with local legal obligations on the global Cardano network. The applicable local and international regulations and laws must be identified and acknowledged to permit global expansion of onchain services with physical products. The establishment of legally recognised entities on the Cardano network is essential for the blockchain to advance and these entities are obliged to operate lawfully. The legal framework for our project, if funded, can serve as a template for similar business structures.
[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
The risk of creating insufficient legal entities, which are not adaptable to adjustments of legal regulations and standards, currently not clearly defined and subject to precipitous change. We wish to identify solutions to existing legal uncertainties, through professional legal guidance. Allowing for the creation of a robust financial and legal framework to ensure growth on the Cardano network.
Digital assets and native tokens have no clear pathway to ensure lawful operations, this proposal seeks to address this issue and implement entities which adhere to existing financial and legal regulations and standards.
The ability to empower businesses development on the blockchain are inadequate. This can lead to reoccurring legal and financial consultancy fees. We aim to identify advanced financial and law personnel, assisting in the creation of blockchain based entities avoiding reiterations.
[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.
Proposal developed over 4 Month period
Timeline and Milestones
Month 1
- Identify Legal compliance – best practises – scope of compliance
- Token Classification
- Social Impact Classification
- Identify Legal entity – LLC/Association/Foundation
- Identify legal responsibilities
- Identify financial responsibility
- Due diligence
Month 2-3
- Identify Global Legal location – each country has different laws and financial operations, as a project wishes to operate globally advice must be obtained from experts.
- Creation of Legal entity
- Creation of Social Impact entity
Month 4
- Application to Register as legal entity
- Application to register as social impact entity
- Token classification completion
Time has been allocated by the team to complete proposed milestones for this project. The milestones operate in conjunction with other business processes which coexist with complementary functionalities of business operations, required to complete the entire blockchain project.
*Internal core team time allocation 1 day per week for 1 people over 4 months
[FEASIBILITY] Please provide a detailed budget breakdown.
Project development by the internal core Algae Token Team: 8 hours per week for 4 months (128 hours at $40/h = $5,120)
- Project management and reporting
- Coordinate legal research and liaise with legal advisor
- Coordinate accounting research and liaise with financial advisor
Legal entity registration ($10,000)
- Accounting fees to establish the local legal entity that administers the physical project.
- Local registration fees
- Social Impact Classification
International Legal advice & consultancy (40 hours at $145 = $5,800)
- Specialised Cryptocurrency/blockchain Lawyer
- Token classification
- Establishment of legal entity
Finance and accounting advice & consultancy (30 hours at $105 = $3,150)
Other expenditures (approx. $800)
- Registration fees
- Trading License
Total $24,870
[FEASIBILITY] Please provide details of the people who will work on the project.
Dylan Kreis <https://www.linkedin.com/in/dylankreis/>
Bachelor of Information Systems
20+ Year's experience in Information System project management,
design and implementation.
Chemical Engineer
He has significant experience as a Chemical Engineer and Farm
manager for a micro algae-based companies in Australia and as the Algae Energy
Farm Manager for the University of Queensland. Consulting for microalgae
companies in Australia and the middle east.
Dr. Skye Thomas Hall <https://www.linkedin.com/in/skye-thomas-hall-858a6639/>
PHD. Microbiologist
Dr Thomas-Hall has worked at the University of Queensland as
Team leader of the Algae Biotechnology supervising a number of PhD, Masters,
Honours and undergraduate students, all working on algae production/processing.
Skye has helped set up over 30 small scale projects in
hatcheries, university operations and several larger companies, primarily based
in northern America and Australia.
Dr. Swaminathan Detchanamurthy <https://www.linkedin.com/in/dr-d-swaminathan-5982b115/>
PHD. Microbiologist
Chemical Engineer
Dr D. Swaminathan serves in the Board of different microalgae
cultivating companies which includes Seagrass Tech Pvt Ltd India. Glaukos Algae
Technologies, India and Algae Australia
Cryptocurrency Lawyer
Ph.D. Digital Signatures and LL.B. (Hons)
A solicitor for 30 years having concentrated on IT law, and IT security law.
Presently advising on Blockchain technology.
Chartered Accountant
Cryptocurrency Accountant
Expertise includes accounting & tax, asset structuring, management reporting for business success and implementing cloud accounting systems.
[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.
This project aims to be self-funded within the given timeframe
[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?
The projects progress will be tracked with regular meetings with legal and accounting professionals to ensure progress and task completion. The majority of the measurable outcomes of the proposal are task orientated and progress is defined by registration of legal entities and completion of milestones.
-
Creation of legally compliant business entity – registered legal entity
-
Confirmed Token Classification
-
Complying to legal responsibilities in local and international locations
[AUDITABILITY] What does success for this project look like?
Success of this proposal is the confirmed fully operational business entity and registered legal entity, coordinated by legal and financial experts. This includes;
- Token classification
- Social impact classification
- Business Entity registration
Allowing for legal on-chain purchases of physical products with ADA and or Native tokens and the and financial framework to maintain a sustainable business model.
Success is also the Cardano community adopting the project which will be calculated by the number of members onboarded to social media platforms, such as discord and twitter.
[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.
New project never been funded.
Sustainable Development Goals (SDG) Rating
This project is one of the most sustainable projects on the planet, providing solutions to Food, Fuel and Climate issues currently being faced worldwide. The education on these benefits must be brought into the public domain and we appreciate your support.
SDG goals:
End poverty in all its forms everywhere
End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Ensure healthy lives and promote well-being for all at all ages
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Ensure availability and sustainable management of water and sanitation for all
Ensure access to affordable, reliable, sustainable and modern energy for all
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Reduce inequality within and among countries
Make cities and human settlements inclusive, safe, resilient and sustainable
Ensure sustainable consumption and production patterns
Take urgent action to combat climate change and its impacts
Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
SDG subgoals:
By 2030, achieve the sustainable management and efficient use of natural resources
Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning
Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities
By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans
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
By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally agreed targets on stunting and wasting in children under 5 years of age, and address the nutritional needs of adolescent girls, pregnant and lactating women and older persons
By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality
Key Performance Indicator (KPI):
Proportion of agricultural area under productive and sustainable agriculture
Number of countries using ecosystem-based approaches to managing marine areas
Prevalence of undernourishment
Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)
Prevalence of malnutrition (weight for height >+2 or <-2 standard deviation from the median of the WHO Child Growth Standards) among children under 5 years of age, by type (wasting and overweight)
SDG Goals 7, 8, 12 and 13 and sub goals 7.a, 8.1, 8.2, 12.1, 12.2, 12.3, 12.4, 12.7, 13 and 13.2
7 - Ensure access to affordable, reliable, sustainable and modern energy for all
7.a - By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology
8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
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
8.2 - Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
12 - Ensure sustainable consumption and production patterns
12.1 - Implement the 10‑Year Framework of Programmes on Sustainable Consumption and Production Patterns, all countries taking action, with developed countries taking the lead, taking into account the development and capabilities of developing countries.
12.2 - By 2030, achieve the sustainable management and efficient use of natural resources
12.3 - By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses
12.4 - By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment
12.7 - Promote public procurement practices that are sustainable, in accordance with national policies and priorities.
13 - Take urgent action to combat climate change and its impacts
13.2 - Integrate climate change measures into national policies, strategies and planning
