Please describe your proposed solution

This proposal outlines Part 1 of a two-part project to develop an on-chain trustless profit distribution system for Cardano. The focus of this initial phase is the creation of a smart contract and accompanying Command Line Interface (CLI) tool. The system will allow users to stake tokens, with profits distributed based on preset parameters. Importantly, users will need to actively claim their profits using the provided CLI. Part 2 will be for the off-chain code and web interface, but the CLI will be provided at this stage so that the smart contracts can still be utilized before the web interface is funded and completed.

Technical Specifications: The smart contract will be written in Aiken, leveraging its efficiency and security features for Cardano development. A comprehensive CLI tool will be developed to interact with the smart contract, enabling users to stake tokens, check balances, and claim their profits. Rigorous testing will be conducted to ensure the functionality and security of both the smart contract and the CLI tool.

Deliverables: Upon completion of this phase, we will deliver an Aiken smart contract for profit distribution, a fully functional CLI tool for user interactions, detailed documentation for CLI usage, and a comprehensive test suite demonstrating the contract's functionality. These components will form the foundation of a robust, trustless profit distribution system on the Cardano blockchain.

Future Development: While not part of this current proposal, it's important to note that a second phase (Part 2) is envisioned for future development. This subsequent phase will focus on creating off-chain components and a Web2 panel to provide a more user-friendly interface for interacting with the system. This future development will be proposed separately once Part 1 is successfully implemented and additional funding can be secured.

Please define the positive impact your project will have on the wider Cardano community

By funding this initial phase of the project, the Cardano community will gain a valuable tool for trustless profit distribution. The CLI interface will allow technical users and developers to immediately use and integrate the system, paving the way for broader adoption with the future development of a user-friendly interface in Part 2. This project represents a significant step forward in demonstrating Cardano's capabilities in decentralized finance and automated, transparent profit distribution.

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

We have built similar systems on Ergo and now have ample experience with both Aiken and off chain code/architecture for Cardano dapps.

What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Specification of system design and smart contracts

deliverable: Specification in form of PDF available in github

Milestone 2: Aiken contracts implemented according to spec

Deliverable: Code available in github

Milestone 3: Off chain code exposed as a CLI

deliverable: Code in github

Final Milestone: Project closure report with video

Who is in the project team and what are their roles?

Martin Morley (project lead + dev support)

Robert Pieter van Leeuwen (Smart contract and backend dev)

Potential extra hire to support dev work

Please provide a cost breakdown of the proposed work and resources

The proposed budget for this six-month development phase is 190,000 ADA. This allocation will support two developers for the duration of the project. The budget covers all aspects of development, including smart contract creation, CLI tool development, comprehensive testing, documentation, and any necessary audits or optimizations.

No dependencies

How does the cost of the project represent value for money for the Cardano ecosystem?

The better the UX is for profit distribution on Cardano with proper trustless solutions the more makes sense for large cross-chain projects to run their staking/profit sharing on Cardano, increasing the usage and TVL of the ecosystem.