Please describe your proposed solution

Overview: Develop and open-source Aiken Cardano smart contract (SC) for the 404 system, allowing the exchange of NFTs for fungible tokens (FTs) and vice versa, with fixed conversion rates set by metadata or custom algorithm.

After the SC is completed, build out a functioning Frontend dApp where projects and users can set, make, and transact the conversions between NFTs & their FT pair through the 404 SC.

Problem: While NFTs are valuable for building IP, token gating, and other uses, they face challenges such as illiquidity, capped holders, difficulty being listed on centralized exchanges (CEXs), and higher barriers to fundraising. Additionally, when NFT projects launch FTs (or vice versa), the utility and value become divided between the two tokens. Until now, unifying the benefits of both NFTs and FTs has been nearly impossible, but the 404 system can solve this issue by allowing seamless conversion between the two.

Solution: We will create open-source SCs that enable NFT projects to set a conversion rate to their FT based on the NFT's metadata. Users can exchange NFTs for FTs within a marketplace, allowing the FT to function like any other fungible token with liquidity pools, exchange listings, and more. At any time, the FT can be used to buy back an NFT, creating a peg in value between the two assets. This system unifies their utility, unlocking the liquidity and flexibility of FTs while maintaining the uniqueness of NFTs. This concept has already been proven with Jellycube NFTs and $Jelly, demonstrating its viability.

After the SC is completed, we then create a functioning dApp Front-End that easily allows user & projects to fully leverage the SC functionalities.

For example, a WMT Node NFT valued at 150k ADA can be exchanged for 10,000 WMT 404 Tokens, enabling fractionalized ownership, potential lending/borrowing, exchange listings, and continuous reward generation through the NFT marketplace wallet—tapping into previously inaccessible liquidity.

We’ve already implemented this system for our Jellycubes project, allowing users to swap 1 Jellycube NFT for 10K $JELLY tokens. When swapped, the NFT enters a marketplace and can only be repurchased using 10K $JELLY, creating a unified peg between the NFT and FT. This approach combines the benefits of both assets while eliminating their negatives.

404 Site: https://bigfi.app/

Video Explanation:

<https://www.youtube.com/watch?v=nX4r1lBXDy8>However, we initially built this without a smart contract. Now, we aim to develop a smart contract to offer a more secure, decentralized service to other projects, enabling them to leverage the same opportunities.

404 tokens are still in their early stages but are gaining traction across other chains as more people recognize their potential. Additionally a few projects are aligned to use the 404 system at launch, including RWA, NFT and DeFi.

Outcome: We believe the 404 model is the future of NFTs and FTs, opening up new possibilities for projects by unlocking liquidity and unifying the utility of both assets. Similar concepts have already appeared in other chains (e.g., Degods). The 404 model can lead to higher user engagement, more trading volume, and unlock new liquidity pools, even allowing for 100% Loan-to-Value (LTV) in NFT lending/borrowing through fractional ownership.

Why Catalyst: Aiken developers are highly specialized and costly. Funding is needed to build out the smart contracts for the 404 system, which we will open-source for the broader community to benefit from. Then we will have additional costs building out the Front-End and further supporting/marketing the platform.

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

404 tokens unlock a wide range of use cases previously unattainable. Many NFTs struggle with liquidity due to the lack of a tradable FT on a liquidity pool. With 404 tokens, you can enjoy the benefits of NFTs—such as IP, branding, marketing, token gating, or representation of real-world assets—while eliminating the downsides through FT conversion. This allows for liquidity, fractional ownership, LP/trading fee yields, and CEX compatibility.

This innovation opens the door to more efficient trading markets, driving volume, attracting users, and expanding application possibilities.

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've already implemented a non-smart contract version of this system, which has been working well for nearly a year. Now, we want to develop a smart contract version for greater security and decentralization.

We've received quotes from multiple developers and companies, all of whom are confident in delivering based on their experience.

Our team also includes a systems architect who has already mapped out the solution at a high level and the idea seems feasible from all perspectives.

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

Milestone 1: A: Milestone outputs

• Solution design and architecture including SC design
• Frontend UX design

B: Acceptance criteria

• Documented solution design and architecture that describes key architectural viewpoints as well as smart contract design
• Documented high fidelity wireframes for the frontend

C: Evidence of milestone completion

• Link to public drive with a document outlining the architecture and design of the solution
• Link to figma containing the wireframes for the frontend app

Milestone 2: A: Milestone outputs

• Community input solicitation via CIP proposal
• Smart Contract Implementation
• Testing, documentation, and cleanups

B: Acceptance criteria

• Creation of a CIP with GitHub input solicited from key members of Cardano developer community
• Creation of sample smart contract published open-source for swapping using the 404 protocol
• Refinement of open-source contract and documentation, testing, or other required pull requests from community contributors

C: Evidence of milestone completion

• GitHub Link
• Link to public drive with contract documentation and testing results

Milestone 3: A: Milestone outputs

• Creation and deployment of production contract
• Frontend use case development

B: Acceptance criteria

• Deploy the open-source demonstration contract to Cardano mainnet and provide sample transactions to interact
• Creation of sample dApp (limited in scope) with nice UI/UX for users to swap back and forth from 404 protocol for various policy IDs

C: Evidence of milestone completion

• Github Link
• Link to public drive with video of sample dApp and interacting with the swapping capability of the SC

Milestone 4: A: Milestone outputs

• Integration of “Safety Box” feature to SC
• Implementation of CIP-68 metadata awareness
• Token conversion rate adjustment algorithm including Ada to $ price and liquidity movements

B: Acceptance criteria

• Creation of a timeboxed “lock” period natively to the smart contract and solicitation of feedback from the community
• With CIP-68 NFTs the smart contract can natively handle specific exchange rates based on traits/rarity of the NFT
• Functioning token conversion rate adjustment algorithm including Ada to $ price and liquidity movements

C: Evidence of milestone completion

• Github Link
• Link to public drive with Video of the Safety Lock Box concept and the conversion rate algorithm

Final Milestone: A: Milestone outputs

• Generalized audit
• Marketing campaign

B: Acceptance criteria

• Smart contracts deployed to the blockchain require security audits before being deployed at scale
• Documented marketing campaign to spread awareness

C: Evidence of milestone completion

• GitHub Link
• Link to public drive with Video of the simple dApp illustrating the conversions and Safety Box Feature
• Link to public drive with a document containing the Audit Report
• Link to public drive with a document containing the marketing campaign report

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

Jason Borck

Jason brings extensive experience in bringing products to market, a core asset for this project. As the founder, he leverages his background with Jelly Cubes, one of the few consistently successful projects in the Cardano community. Jason’s insight into Cardano’s trajectory and his active presence across social media platforms enable him to drive project visibility and engagement. His role focuses on managing strategic relationships, coordinating project analysis, and organizing team efforts to ensure smooth progress and impactful content delivery.

Twitter: https://x.com/jason_borck

Tudor Cotruta

Tudor's role involves maintaining and facilitating interactions within the Cardano ecosystem, managing the project to ensure deadlines and commitments are met. He actively contributes to communication with stakeholders, developers and governmental entities.

LinkedIn: <https://www.linkedin.com/in/tudor-cotruta-a6661a88/>

Sorin Canter

Sorin holds a degree in applied mathematics, a master's in information technology, and has over 20 years of experience in the IT industry in various roles. He comes with extensive leadership and management experience across multiple verticals. His role is to provide analytical insight to the project, digest and leverage technical matters, and proactively contribute to the development process.

LinkedIn:

<https://www.linkedin.com/in/sorin-canter-21716327/>

Please provide a cost breakdown of the proposed work and resources

M1:

• Solution design and architecture - 35k ADA
• Frontend UX design - 20k ADA

M2:

• Community input solicitation via CIP proposal - 20k ADA
• Smart Contract Implementation - 70k ADA
• Testing, documentation, and cleanups - 10k ADA

M3:

• Creation and deployment of production - 20k ADA
• Frontend use case development 20k ADA

M4:

• Implementation of CIP-68 metadata awareness 15k ADA
• Integration of “Safety Box” feature to SC 15k ADA
• Token conversion rate adjustment algorithm including Ada to $ price and liquidity movements - 55k ADA

Final M:

• Generalised SC audit - 50k ADA
• Marketing campaign - 45k ADA

Milestones submission - 1.75k ADA

Contingency - 20K ADA

Total: 396750 ADA

No dependencies

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

We believe the 404 concept has immense potential to revolutionize both new and existing NFT and FT projects. We're particularly excited about its ability to enable fractionalized ownership of real-world assets (RWAs) or nodes, such as World Mobile Token (WMT) or Xerberus Xerchers, which are often represented by NFTs.

By open-sourcing the smart contract, we aim to make it easier for developers to leverage this technology without having to build it from scratch. This will foster additional innovation and unlock new opportunities within the space.