[IMPACT] Please describe your proposed solution.

ADALoyal is a loyalty platform on top of the Cardano network that utilizes the power of smart contracts. Using the advantage of blockchain to apply to real-life applications and on the Dapps. And we target AD Loyal to solve the above problems in the current loyalty market

Why do we need Cardano blockchain for loyalty?

• We can create loyal tracking for customers, but they don't need to trace off their personal info.
• Customers will don't lose data loyalty, and no one can edit loyalty data. Because Blockchain is Immutability.
• A loyalty program will more fair and useful because everything is visible and traceable in the blockchain. We can apply micropayments to redeem small points for customer benefit.
• Loyalty with more fun and creativity with Cardano NFT. And with smart-contract, we can build a collection of rules for anyone can use. Ex: Play to earn, Buy to earn, Go shopping and earn NFT,v.v.

Easily create and traceable points with Cardano assert, points can exchange and redeem with micropayment more using value

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

On the Customer side: ADALoyal will help manage all loyalty points and NFT rewards, news, and the government in the same place. Can claim points add feedback and get more benefits from the project owner.

On Bussiness Side: ADALoyal will help manage list customer, their membership, and revenue, create news, connect with customers and easily create programs with templates smart-contract.

Features

• NFT for identity loyalty (basic info for loyalty like name, dob, age). The customer has permission to update the metadata of this NFT, based on what info they are willing to share. This helps identity but still keeps private user data safe.

• Query on chain data and visually it bases on NFT identity, helps the customer and project owner can see their loyalty data.

• Help customer manages their points and NFTs collections.

• Increase communication between project owners and their customers through news, message, voting, and survey.

• Help project owners easily create loyalty programs by themself through smart-contract templates.

Users :

• Anyone in the Cardano network can use AdaLoyal, and we will expand it to real life application
• Project owners want to give more benefits to their customers, manage and create their loyalty programs

Main functions

Customer side:

• Connection with wallet have identity NFT
• Show customer portfolio including points and NFTs collection
• Claim functions help customers claim or accumulate their points for saving fees.
• Claim NFT rewards from project owners
• Get news and inbox from project owners
• Government voting and survey
• Staking points features

Project owner's Side:

• Query and categories customer data like tiers, visits, history transactions
• Customer loyalty data explorer
• Create loyalty programs through templates and smart contracts

Typical workflow

• Project owners set up rules for getting points by set params in the smart-contract template

Example:

If the customers have transactions from epoch 315 to epoch 415

can claim 1000 points.

OR

Each swap will cash back 1% if keep an Nft VIP.

• Customer can claim their loyalty tokens or NFTs through ADAloyal
• In the future customers can use only one QR code for accumulated loyalty points
• The business will scan and reward customer points per transaction

Architecture & main modules

ADALoyal contains off-chain code that runs on AWS infrastructure and on-chain code that runs on the Cardano blockchain network.

The architecture includes backend REST APIs, 02 web frontend apps, 02 smartphone apps, and the deployed smart contract on Cardano:

• Backend REST APIs & smart contract off-chain code.
• Using Oura (the tail of Cardano) with elastic search to show data and statics info for business and customer
• The deployed smart contracts on the Cardano blockchain network.
• Frontend apps for:
• Project Owner
• Customer
• Mobile apps for customers and project owners.

Project tech stack: Rust, Flutter and React, Elastic Search, Plutus, and Marlowe, Haskell

Impact to customers

ADALoyal will bring more benefits and fair rewards in loyalty programs for both on-chain and off-chain applications. More utility and more fun in loyalty programs, customer can use their points through micropayments, earn NFTs, and take part in gamification.

And they have your voice with what they love through voting and survey on-chain.

More connection and personal experience with the business owner

Impact on Business owner

A business owner can easily create their loyalty programs through a drag-and-drop smart-contract template, not depending on the developer team. Easy create voting and surveys to get data from the community. More connection with their customer. So they can get more revenue from their customer. Easy manager data loyalty through our dashboard. Increate and share loyalty between business owners. Easily create loyalty cross omnichannel and business partner.

Impact on catalyst project and Cardano users

• Help grow Cardano ecosystem, support small pool and project in Cardano.
• Bring more benefits to users in the Cardano ecosystem
• Bring Cardano to real-life application

Marketing strategy

We believe the best marketing strategy is building community, education, and building a good product.

Help education about Cardano and Dapps in the ecosystem and creating a connection between customers and project owners is our first marketing strategy

Communicate is our the values

ADALoyal mission is to connect customers and project and business owners, and help customers have better experiences and good relationships, The values of this mission should communicate out:

• Building a strong relationship between business and customers
• The help they have the channel to communicate through voting and survey
• More fund, benefit and win-win relationship between customer and business

Marketing channels

• Real customer to new customer through Catalyst and other Cardano communities.

• Public social channels: Twitter, Facebook, telegram, newspapers, and website.

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

Risk: Lack of Cardano smart contract resources for developers including documents, and libraries.

Solution*: Pay more attention to research and select the right development strategy.*

Risk: Lack of budget leads to a lack of developer resources for a big thing such as loyalty.

Solution*: scope functions for on-chain apps, and have proper priorities and expectations.*

Risks in the service delivery phase

Risk: Stability of the system at the first launch.

Solution*: perform detailed benchmark tests to address the problems that need to be solved to confirm the system is good to go.*

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

Q3-2022

Project planning and POC (proof of concept)

Project planning and POC (proof of concept)

• Project outline, break down the project into workable tasks and member assignments.
• Setup development environment: GitHub, staging server.
• Define detailed system architecture and select technologies.
• Develop POC to verify the main logic and concepts.
• Expect the project to be funded and start development.

The countable outputs of this period are:

• Developers are proficient and have the right technologies, libraries, and frameworks for the project.
• Got design patterns for each domain e.g backend, front end, and Cardano smart contract.
• POC worked to verify the possibilities of solutions.

Q4-2022

Develop project components:

• Create smart-contracts supports for loyalty programs, like claim points, NFTs based on the number of transactions in a Dapps, lottery contract, go-to earn contract, cashback contract…
• Create frontend component to create NFT identity, and custom metadata by user choices for loyalty purposes
• Backend REST API for query on-chain data and report loyalty data, admin functions, and smart contract integration with Cardano blockchain network
• UI/UX, front-end application for customer app and business app
• Design architecture for frontend app for both customer app and business app

The countable outputs of this period are:

Done basic UI to create, update, and distribute NFT identity for customers

• Get data on-chain based on identity NFT and show report loyalty report.

• The design schema should be clear, easy, and low latency to aggregate.

• The API endpoints return exact data and perform logic exactly for fetch actions like GET, POST for data on the chain, and admin functions.

• The Deployed smart contract on testNet performs exactly the claiming, lottery, and gamification.

• The frontend application has good UI flow, is simple, beautiful, and needs fewer user actions. Fetch APIs and render functions are working right.

• Complete architecture and basic logic for frontend app for both customer app and business app

Q4-2022

Develop project components:

• On-chain Cardano smart contract to handle claim points, NFTs based on number transactions in a Dapps, lottery contract.
• Off-chain code to call deployed contract on Cardano.
• Functional and integration test for each component and rebuild if needed.
• Integrate test full application flow.
• Backend handle gets, manages data loyalty in Cardano blockchain with Oura lib and integrates with Elasticsearch to show report data follow redefine metrics.
• The frontend app can show tokens and NFTs based on NFT identity, and show the history of loyalty transactions.
• Connect with extension wallets like Flint, Nami, Eternl
• The business frontend can show report modify params to create redefine rules for smart contract

The countable outputs of this period are:

• The deployed smart contract on testNet performs can handle claim points base rules redefine, claim NFTs based on number transactions in a Dapps, lottery contract.
• Full test create, update and NFT identity, testing flow get the report loyalty base on identity
• Can visualize loyalty report data through charts UI and testing reports case
• Dapps for business can modify params of templates smart contracts to create their contract based on specific use cases
• The frontend app can have a basic UI for creating, updating NFT identity, show token points, and connecting wallets. Show history transactions loyalty
• Claim functions to get loyalty points and NFTs working exactly and have tested

Q1-2023

Beta release and go to market

We will call for support from projects in the Cardano ecosystem to use our loyalty systems and partnership with them for a win-win strategy.

Call support from the community of Cardano joins Testnet and Give Feedback

Begin weeks of Q1:

We run full Testnet and get bugs reports and feedback from the community

The feedback should contain:

How to create and update NFT identity work for customers

How flow claim loyalty points and NFTs work for customers

How smart contract loyalty rules work fine for business and customers

How reports loyalty data working for the business

After done getting bugs and Feedback from the community

Fix bugs and improve feedback

Apply audit smart-contract in the template

Once we have good feedback from pilot users it is time to publish product marketing to a massive amount of users, and groups.

In Future

When loyal can work best on-chain, we will take another step to bring it to real-life application

• Apply Layer-2 solutions like Hydra or Zk-rollups (Orbis) for instance accumulate points with a transaction fee of almost zero.

• Apply Babel fees help customers can easily send points to their friends or business send loyalty points to their customers.

• With Layer-2 implement our loyalty will have more benefits with micropayments, like just using points for using wifi in coffee shops in 2 hours, or paying for electrics charge.

• It is easy using one QR code to accumulate points anywhere with the cheapest fee.

• SDK for POS can integrate our loyalty

  [FEASIBILITY] Please provide a detailed budget breakdown.

Cost of backend API development: 370 hours * 30 $/hour = 11.100$

Cost of database design: 260 hours * 30 $/hour = 7.800$

Cost of smart contract development: 572 hours * 40$/hour = 17.160$

Cost of frontend customers apps development: 500 hours * 25 $/hour = 12.500$

Cost of frontend business apps development: 500 hours * 25 $/hour = 12.500$

Cost of QA/QC work: 212 hours * 20 $/hour = 4.240$

AWS Infrastructure cost: 2.880$

Beta launch: 1.500$

Project management cost: 4.500$

The total cost of the project to request: 63.000$

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

Dao Cuong

Practical blockchain engineer, software expert, blockchain enthusiasm

Experiences: Design & develop software at all levels. Long track experiences with high volume, high availability critical mission systems.

Project responsibilities: Product design. Engineering management. Main full stack & blockchain engineer.

Contact:

• Linked: <https://www.linkedin.com/in/dao-cuong-a2409061/>

Em Nguyễn

Software expert, blockchain enthusiast.

Experience: more than 10 years of experience with design & development software, capable of implementing software at all levels, and running high-volume products.

Responsibilities: Backend & APIs leader - APIs, blockchain & full stack, Project Management

Contact:

• Telegram: <https://t.me/nghiaembt>

<u>Thai Ngo</u>

<u>Senior frontend engineer & blockchain engineer, Cardano's fan. </u>

Experience: more than 7 years of experience with software development mobile, frontend, and mobile apps and blockchains

He also has experience with testing processes, UI UX design thinking

Responsibilities: Frontend and mobile apps leader - Frontend, mobile development, develop Cardano smart-contract

Contact:

• Linked: <https://www.linkedin.com/in/duy-th%C3%A1i-ng%C3%B4-l%C6%B0u-435a15132/>
• Telegram: https://t.me/ngoluuduythai

<u>Linh Nguyen</u>

<u>Senior full stack engineer & blockchain engineer, Cardano's fan. </u>

Experience: 7 years of experience with software and blockchain development, capable of implementing software at all levels and running high-volume products.

Responsibilities: Frontend & APIs leader - APIs, blockchain & full stack, develop Cardano smart-contract

Contact:

• Linked: <https://www.linkedin.com/in/nguyen-ngoc-linh-06b920151/>

<u>Hung Le Thanh</u>

Experiences: Business owner, digital marketing, community management, data analysis. Experienced with Cardano economic model.

Former Community Leader at Meta for Developers

Former Tech evangelist at Google Developer Group Hanoi - GDG HaNoi

Project responsibilities: Product features, marketing management, finance management, community influencer.

<u>Son Nguyen </u>

Product Designer.

Experience: more than 8 years of UI and UX design and development of product

Responsibilities: Product Design, Digital content, marketing design.

Contact:

• Dribbble: <https://dribbble.com/sonss>
• Behance: <https://www.behance.net/sonnguyen2d2e>

<u>Tuong Tran,</u>

<u>Junior full stack & blockchain engineer, rust enthusiasm</u>

Experience: 2 years of experience with software and blockchain development,

Responsibilities: Backend & Cardano smart contract, develop test scripts.

Contact:

• Linked: <https://www.linkedin.com/in/t%C6%B0%E1%BB%9Dng-nguy%E1%BB%85n-44b687193/>

<u>Vinh Doan,</u>

<u>Junior full stack & blockchain engineer, rust enthusiasm</u>

Experience: 2 years of experience with software and blockchain development,

Responsibilities: Backend & Cardano smart contract, develop test scripts.

Contact:

• Linked: <https://www.linkedin.com/in/v%C4%A9nh-%C4%91o%C3%A0n-7986b918a/>

<u>Tri Nguyen</u>

<u>Junior full stack & blockchain engineer, rust enthusiasm</u>

Experience: 2 years of experience with software and blockchain development,

Responsibilities: Backend & Cardano smart contract, develop test scripts.

Contact:

• Linked: <https://www.linkedin.com/in/tr%C3%AD-nguy%E1%BB%85n-d%C6%B0%C6%A1ng-b20ab31bb/>

<u>Tuan Nguyen</u>

<u>Junior full stack & blockchain engineer, rust enthusiasm</u>

Experience: 2 years of experience with software and blockchain development,

Responsibilities: Frontend & Cardano smart contract, develop test scripts.

Contact:

• Linked: <https://www.linkedin.com/in/tr%C3%AD-nguy%E1%BB%85n-d%C6%B0%C6%A1ng-b20ab31bb/>

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

If we get funded, we will return to get another round to bring our loyalty to real-life applications.

Because:

When loyal can work best on-chain, we will take another step to bring it to real-life application

• Apply Layer-2 solutions like Hydra or Zk-rollups (Orbis), for instance, accumulate points with an almost zero transaction fee.

• Apply Babel fees help customers can easily send points to their friends or business send loyalty points to their customers.

• With Layer-2 implement our loyalty will have more benefits with micropayments, like just using points for using wifi in coffee shops in 2 hours, or paying for electrics charge.

• It is easy using one QR code to accumulate points anywhere with the cheapest fee.

• SDK for POS can integrate our loyalty

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

1.1 Clear and trackable development progress

• Use TDD method for the development process.
• The project will break down into small tasks and then assigned to each member via Trello (a project management software).
• Write UNIT test code in advance before developers start product development.
• The task is confirmed to be completed only when the UNIT test result is “PASSED”.
• Use Github auto deploy to push the latest code to the staging server to make the development product available to everyone.
• A weekly report that lets everyone be aware of the whole process.

1.2 Quantitative indicators for the development process are:

• The number of task/function “PASSED” unit test codes.
• The number of benchmark and QC tests “PASSED” for the end user functions.
• The number of GitHub commits and merges.
• The number of tasks gets “DONE” in Trello.

The development success consideration

• 100% of main tasks are "done"
• 100% unit test for the main task is "passed"

In this way, the progress is clear, measured, and tracked.

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

The success of the project from the product development point of view

• Main software components are developed and tested: 100%
• Extra aspects & extra software components are developed and tested: 70%-100%
• System operations KPIs: 70%-100%
• Product is published and available to users: 100%
• Extra factors of product delivery: 70%-100%

The success of the project from the business point of view

• Features and smart-contract templates work as our design
• More smart-contract templates are added to systems through community contributed
• 5-10 DApps successfully using our loyalty platform in their business.
• It's just the starting point for us to link it to a loyalty program for off-chain apps

The definition of success From the user's point of view

• Users can gain benefits, more fairness, and more utility from a loyalty program in one of DApps.
• Grow more than 1000 users minting NFT identity and using our Dapps
• Users can share Loyalty information between their DApps.

Success KPIs of extra software components & aspects

• All components are developed and successfully tested
• Code quality and visibility: source code is clear and easy to reuse and maintain.
• Reports are valuable to users
• All code is public at a registered Github link that is available for other people to view, improve, or re-use.

Success KPIs of product delivery

• The product is released as a scheduled timeline, available for everyone to use a public URL through the internet.
• Main functions are available for users to use. Issue user NFT Identity, issue NFT Loyalty, accumulate points with DApps transactions, use points to gain other transactions…

Success KPIs of system operation (ms is millisecond)

• System uptime: 99.99%

• Average access latency: 50-500ms

• Business admin define Loyalty rules with a latency of 500-1000 ms

• Issue Loyalty NFT with a latency of 500-2000ms

• Earn points with a latency of 500-1000ms

• Submit smart contract to Cardano blockchain network latency: 50-1000 ms depending on Cardano network.

• Security: 100% unwanted access is dropped and all data is safe.

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

This proposal is an entirely new project. We have not submitted any proposal to Catalyst.