Detailed Plan

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<u>Summary for Community Advisors:</u>

1) Our Proposal in a Nutshell: This proposal is aiming for an additional in-depth analysis of the emerging EU-legislation by specifically examining PoS, staking and some newly emerging SPO activities like e.g. ISO (Initial Staking Offering). Based on Cardano's smart way of handling PoS and staking, we want to investigate possible advantages with regards to complying with emerging regulatory frameworks. If funded, we can derive important inputs to another proposal we have placed in fund 7: Establishing a SPO 2.0 Blueprint - which is about creating a BLUEPRINT for starting and growing a legally compliant stakepool of the future.

See: <https://cardano.ideascale.com/a/dtd/How-to-establish-a-SPO-2-0/384352-48088>

The findings of this proposal will of course also be integrated into our DLT360 Risk & Opportunity Radar (funded in fund 6, see our WEB-Site), thus making these findings also directly useable for the Catalyst-community's systematic risk (and opportunity) management.

2) Impact: This proposal complements the work of various other proposers (which are investigating EU-Regulation in a more general way). Here we are proposing an in-depth analysis of the SPO-related aspects. We want to emphasize that analyzing legal regulations is most beneficial when performed in a practical, result-oriented context (which means in our case: using the findings of this proposal as input to creating an inter-disciplinary BLUEPRINT for starting and operating a regulation-compliant stakepool). For avoiding redundancies and for maximizing benefits for the Cardano Community, we are actively partnering and networking with other legal-regulation-analyzing proposals. For more details please refer to our WEB-Site and/or to our Business Model Canvas section below.

3) Feasibility: This proposal is part of a bigger picture. Our DLT360 team has started its journey after being funded in fund 6 with one of our major services: The DLT360 Risk and Opportunity Radar. Based on this funding, we have implemented a small operational core-team. We are furthermore growing an extended team of inter-disciplinary domain-experts from the Catalyst community, industry and academia for adding their knowledge on demand (For more details please refer to our WEB-Site and/or to our Business Model Canvas section below).

4) Audibility: Our Business Model Canvas section outlined below contains major activities, milestones, deliverables, roadmap and costs. Due to various projects being interlinked and due to the overall complexity of proper planning and tracking, we do this in our DLT360 - MIRO environment. We offer on-demand visits to these MIRO boards for deeper-going discussions during the assessment phase. Due to already running a fund 6-funded project, we are part of the Catalyst Coordinator Process and acquainted with the relevant reporting processes.

Please note: We are applying a best-practice Business Model Canvas approach. We have added tags to our details below, hoping that the Catalyst-funded 'The Great Filter' application will be able to identifying the required sections in our text.

<u>Business Model Canvas - Section containing further details</u>(Our Canvas is maintained in DLT360 MIRO environment, access upon request)

This proposal is part of a bigger picture. Our DLT360 team has started its journey after being funded in fund 6 for one of our major services: The DLT360 Risk and Opportunity Radar. Fund 6 is about establishing this foundational framework for professional risk (and opportunity) management. With this new fund 7 proposal, we are adding a very specific aspect in the regulatory risk & opportunities segment. Points 1 to 5 of our Business Model Canvas are therefore explaining the bigger picture, while points 6 to 9 and the listed activities, milestones, deliverables, roadmap and costs are kept very specific to this project.

1. Customer Segments / Target Groups

• Primary Clients: CARDANO Community (including Catalyst, Foundation, IOG and others) and existing and newly arising SPO
• Secondary Clients: DLT-relevant public, selected high-quality YouTube channels, universities, regulatory bodies, industry clients

2. Value Proposition

Dependent of the above listed customer-segments, we see our value proposition as following (more details in MIRO):

• Providing very practical and hands-on inputs to creating an inter-disciplinary SPO 2.0 BLUEPRINT (see our related proposal)
• Providing specific details to our DLT360 Risk and Opportunity Radar, enabling professional risk-management frameworks (e.g. ISO 31000 compliant)

3. Distribution Channels

Depending on customer-segment and corresponding value-proposition, the following delivery channels will be used:

• Becoming part of a specific SPO 2.0 Implementation Blueprint and of related hands-on Consulting Artifacts
• Integrated into quarterly reporting based on the DLT360 Risk & Opportunity Radar

4. Customer Relationship

This project requires a one-time-effort. After this initial effort and the related initial funding, this will become part of our overall DLT360 activities. For these overall activities we are lobbying for stable service and consulting agreements with the Cardano community and outside-community clients (see also our related Fund 8 Challenge Setting proposal).

5. Revenue Structure

This project must be seen in the context of our overall DLT360 revenue stream planning. During this early stage of our DLT360 startup, we are fully focusing on servicing the Cardano Community. The fund 6 funding of our basic DLT360 Risk & Opportunity Radar will lead to delivering 2 quarterly reporting events (one planned for March and one for June 2022). This project will provide the specific (deepened) content related to PoS and SPO. For the overall startup, we are applying a careful 'Lean Startup' approach. This means that we will plan, check and iteratively adjust our Business Model according to our learnings, documented in our MIRO environment. For the time after Q2 2022, we see the following approaches regarding securing sufficient revenue streams for maintaining and growing our services as well as the required expert team and network.

6. Key Activities (now specific to this project)

This project requires the following specific key-activities

• Designing the legal research and interaction with other Catalyst projects doing legal research (for avoiding redundancies)
• Domain-expert validation of the research-design
• Performing. the legal research
• Writing resulting report, putting the findings into an inter-disciplinary context
• Transforming the findings into Risk & Opportunity Radar information objects
• Quality checking & releasing of results, documents and reporting by senior domain experts

7. Key Resources

DLT360 is built by a small core-team and a flexible team of highly renowned domain experts as well as a scalable network of contributors from the Cardano community, from academia and from industry. For this specific project we will need the following key resources

• Overall lead and representation (handled by Heinz Gassner)
• Project Management: Coordination of execution, collaborating within our team and with external teams & network members (covered by Jonas Weinberger and Guilherme Peirera)
• Back-office work, editing of Risk & Opportunity Radar information objects (assistant job, located in Sao Paulo, Brussels or Malta)
• Legal Researcher: Integrating all bits-and pieces in an interdisciplinary context, closing information gaps (Jonas Weinberger, Etienne Marais)
• Legal Domain Expert(s): Quality check of content, before integrating and before reporting-release (Michiel Van Roey and 2-3 other renowned domain experts, please see the current status on our website)

For an always up-to-date-info about our team, please consult our WEB-Site:

• Heinz Gassner, Malta, with more than 30 years of industry-leadership experience <http://linkedin.com/in/heinz-gassner-9540a241>
• Jonas Weinberger, Brussels, Student and assistant at the Brussels School of Governance:
• <http://linkedin.com/in/jonas-weinberger-0b14801ba>
• Guilherme Peirera, Sao Paulo, Student and assistant at SENAI Institute: <http://linkedin.com/in/guilherme-pereira-da-silva-977a361a3>
• Etienne Marais, student at Versalius College, Brussels: <http://linkedin.com/in/etienne-marais-0845a3224>
• Backoffice resource to be defined
• Michiel Van Roey, DLT Regulation expert, co-founder of PROFILA: <http://linkedin.com/in/michielvanroey>
• Additional domain experts of DLT regulation (for always latest updates see our WEB-Site)

8. Key Partners

We are partnering with other Catalyst projects and proposers in the regulatory field. Please find them always up-to-date on our WEB-Site. We have started to collaborate with

• Michiel Van Roey (independent fund 7 proposer, EU-Regulation expert, aiming for building up legal lobbying activities in Brussels)
• Other projects in this segment - see our WEB-Site for up-to-date information

9. Cost Structure

A deep-diving activity in this field could easily consume the entire funding available for this specific Challenge Setting. We will therefore approach this very smartly by integrating as many elements form other initiatives and by approaching this in a very cost-conscious way. Based on our listed key-activities and key-resources, we plan with the following costs (please note that we are in progress of setting up a formal company body and need to follow the strict European tax regulations):

• Project Management (20 hours for USD 50/h = USD 1.000)
• Backoffice work (50 hours for USD 20/h = USD 1.000)
• Legal research & information integration (50 hours for USD 50/h = USD 2.500)
• Legal research: Major parts handled in form of student-internship arrangement (100 hours for USD 1.000)
• Quality checking by domain experts (10 hours for USD 100/h = USD 1.000)
• Final reporting support by domain experts, including pre and after-work (5 hours for USD 200/h = USD 1.000)

This list of cost is not including the work of Heinz Gassner (contributed by Heinz at this early stage of the DLT360 startup).

Roadmap, Milestones and Deliverables

Due to the strong linkage with other activities of the DLT3690 Risk & Opportunity Radar and the lack of a graphics-integration in IDEAscale, all details are maintained in our MIRO environment. The plan below is just an orientational overview-listing:

• JAN/FEB 2022 Getting started, project formation
• FEB -MAR 2022 Design of research, scouting for synergies with other projects, quality check of research design
• 3-Months MILESTONE: Ready for starting with legal research
• MAR - MAY 2022 Basic research
• MAY 2022. Analysis, summary and establishing reports (with focus on usability for SPO BLUEPRINT and integration into Risk & Opportunity Radar), quality check
• 6-Months MILESTONE Presentation of findings in form of written reports and as part of the JUN 2022 Risk & Opportunity Radar presentation
• 12-Months Success: We see this as integral part of our quarterly DLT360 reporting to the community

KPI Progress and Success Measurement

• KPI 1: Progress of Research-Design (0-100 %)
• KPI 2: Progress of Research (0-100%)
• KPI 3: Progress of analysis and reporting (0-100%)
• KP! 4: Quality-check score (0-100%)
• KPI 5: Community feedback to final presentation (NPS)