Please describe your proposed solution

A ROSCA (Rotating Savings and Credit Association) is a traditional financial system where a group of individuals agree to regularly contribute a fixed amount of money into a common fund, which is then distributed to one member of the group on a rotating basis. Each member gets a turn to receive the pooled funds, providing a form of savings and credit without involving formal financial institutions.

In many African and global communities, ROSCAs are widely practiced as informal, community-based financial tools that help participants save money and access funds when needed. but it lacks transparency and security. This creates a significant risk for participants, including the potential for loss of funds or mismanagement. The problem we are solving is the absence of a secure, transparent, and reliable platform to manage these systems. By researching and laying the groundwork for a decentralized ROSCA system using ADA, we aim to provide a solution that empowers users with greater control, trust, and long-term financial inclusion.

We are focussing on a research-driven approach in this first phase to ensure the proposed solution will be culturally relevant and technically feasible. Our goal is to understand the nuances of informal ROSCA practices in African communities and assess how a blockchain-based system can improve transparency, security and efficiency. This approach will allow us to tailor the decentralized ROSCA system to the specific needs of these communities while leveraging ADA and Cardano’s technology.

We will demonstrate impact through the following measures:

• Research Outcomes: Documented findings on ROSCA practices and the feasibility of decentralized alternatives.
• Community Feedbacks: Survey and interviews to gauge the community’s openness to adopting a blockchain-based ROSCA system.
• Feasibility Studies: Reports outlining how blockchain, specifically ADA. can enhance transparency, reduce risk, and improve trust within ROSCA systems.
• Uniqueness of the Solution: What makes our solution unique is the combination of traditional, community-driven financial systems with cutting-edge blockchain technology. By decentralizing ROSCA, we are addressing a real need for transparency and security in grassroots savings groups, particularly in regions where access to formal banking systems is limited.

Who Will Benefit: The primary beneficiaries will be individuals in African communities who currently participate in informal ROSCA systems. By providing them with a decentralized, secure alternative, we will help them safeguard their savings and promote long-term financial stability. Additionally, the broader Cardano ecosystem will benefit from the increased adoption of ADA and blockchain solutions in real-world financial systems.

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

The Ada Savings Circles project will create a significant use case for ADA by demonstrating its potential to serve as a tool for financial inclusion in African communities. The benefits to the Cardano community include:

• Increased Ada Adoption: By integrating ADA into everyday savings practices, the project encourages the widespread use of ADA in communities that traditionally rely on cash-based systems.
• Strengthening Cardano’s Defi Ecosystem: This project could serve as a gateway for introducing blockchain technology, potentially leading to broader DeFi adoption.
• Real-World Case Study: The research conducted will provide valuable insights into how blockchain can be applied to informal financial systems, which can be leveraged by the wider Cardano community to replicate similar solutions in other regions.

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?

1 Inkuba Hubs Experience and Expertise: Inkuba Hub is a well-established organisation with a proven track record of delivering impactful projects in the areas of education, entrepreneurship, and financial literacy in Africa.

2 Strong Partnerships and Community Engagement: We have built trusted relationships with local organisations, institutions and community leaders, giving us a deep understanding of the informal ROSCA systems in African communities. These partnerships will be instrumental in gathering accurate data and ensuring that our approach is both culturally relevant and technically feasible. Our ability to engage communities and collect valuable insights will enhance the research phase of the project.

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

Milestone 1: Research and Data Collection

Duration: 2 months

Budget: 15000 ADA

Objective: Conduct comprehensive research on informal ROSCA practices in African communities, identifying the challenges and opportunities for integrating blockchain solutions.

Tasks:

• Survey community groups and individuals participating in informal ROSCAs
• Conduct interviews with community leaders, participants and local financial experts.
• Collect data on ROSCA systems frequency, contributions and pain points.
• Identify the legal and regulatory framework surrounding informal savings systems in target countries.

Milestone 2: Feasibility Study and Technical Assessment

Duration: 3 months

Budget: 20 000 ADA

Objective: Evaluate the technical feasibility of using Cardano smart contracts and ADA for a decentralized ROSCA platform.

Tasks:

• Collaborate with Cardano developers and technical experts to explore how the blockchain infrastructure can be adapted for ROSCA
• Conduct a feasibility study of smart contract-based solutions for ROSCA cycles, participant onboarding, and fund distribution.
• Begin development of prototype models and conduct small-scale trials or simulations to test potential solutions.

Final Milestone: Duration: 1 month

Budget: 15 000 ADA

Objective: Finalize and share research results, insights, and proposed next steps with the Cardono community and other stakeholders.

Tasks:

• Compile all, finalize and share research results, insights, and proposed next steps with the Cardano community and other stakeholders.
• Create a detailed roadmap for the next phase, including full platform development.
• Record a video summarizing the project's outcomes, research, and impact potential.
• Present the findings to the Cardano community via webinars, social media, and relevant community forums.

Acceptance Criteria:

• Completed final report, covering all aspects of the research, feasibility, and community feedback.
• Recorded video presentation summarizing the project, delivered in a professional format.
• Public webinars and workshops sharing the projects results and roadmap with the Cardano community.

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

Laurentine Djatsa: Project Coordinator

CEO of Inkuba Academy!Hub, Cardano Hub Lead, Constitutional Delegate for Burkina Faso, freelance Translator/Interpreter

LinkedIn: Inkuba Academy

Elie Kiswend Sida: Project Manager: An expert in feasibility studies; five years of experience in Risk and Social Impact Assessment and Management; His passion for data analysis enables him to identify opportunities and risks inherent to each project, ensuring their viability and positive impact on communities. Ability to conduct in-depth studies and propose innovative solutions.

LInkedIn: Kiswend Sida Elie DABILOUGOU

Dr: Malik Kone: Project Technical Advisor

Assistant Vice President for Innovation, Discovery and Research at William VS Tubman University; Cardano Certified, Constitutional Delegate for Liberia

Aime Nico Kam: Project Administrative Assistant

Administrative and financial assistant at Inkuba Academy/Hub, Cardano Workshop presenter in Burkina Faso since 2022, Constitutional Traveling Alternate for Burkina Faso

LinkedIn: Aimé Sié Humpa Nico KAM

Please provide a cost breakdown of the proposed work and resources

Research and Dara Collection: 15000 ADA

Community Surveys and Interviews(fieldwork in various African countries):

• Transportation for field teams: 3000 ADA
• Local survey coordinators: 2000 ADA
• Community incentives(for survey participation): 1500 ADA
• Data analysis tools/software: 1500 ADA
• Miscellaneous Research Expenses(printing, communication, local services): 1000 ADA
• Legal and Regulatory Consultation (for understanding local frameworks): 2500 ADA
• Field Research Reporting and Documentation: 3500 ADA

Feasibility Study and Technical Assessment: 20 000 ADA

Blockchain Consultant (Collaborating with Cardano developers and technical experts):

• Technical advisory and feasibility study: 5000 ADA
• Smart contract testing and simulation: 4000 ADA
• Prototype Development(initial small-scale trial): 6000 ADA
• Security and compliance review: 2500 ADA
• Report on technical feasibility and smart contract: 2500

Final report and community engagement: 15 000 ADA

Community Engagement and Outreach

• Workshops and Webinars(to present findings): 3000 ADA
• Video production:(final presentation video and updated): 4000 ADA
• Marketing and promotion(social media, community outreach): 2500 ADA
• Publications and open-source report creation: 3000 ADA
• Dissemination via Cardano events and conferences: 2500 ADA

Blockchain Developers: We will rely on Cardano developers to help design and validate the feasibility of using smart contracts for the ROSCA system.

Community Partnerships: Collaborations with local organizations in African communities to gather data, understand local ROSCA practices, and ensure the system meets users' need.

Legal and Regulatory Experts: Guidance on compliance with local financial regulations and cryptocurrency laws in African countries.

Cardano Community: Engagement with the Cardano ecosystem for support, expertise, and potential collaboration on the development efforts.

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

The cost of the Ada Savings Circle: Decentralized ROSCA for Financial Inclusion project represents value for money for the Cardano ecosystem for several key reasons:

• The project focuses on researching and developing the foundation for a blockchain-based ROSCA system using ADA, which has the potential to revolutionize informal savings practices in African communities. By investing 50000 ADA into a comprehensive research and feasibility study, we are laying the groundwork for a solution that could bring financial inclusion to millions of people who currently lack access to formal banking systems.
• Low initial costs: instead of immediately building a platform, this proposal take a responsible first step by conducting essential research, ensuring the system will be technically feasible and aligned with the needs of African communities. This reduces the risk of failed implementation in later stages.
• High potential for scalability: The outcome of this project has the potential to influence a broader ecosystem, as ROSCAs are popular across many African countries. This can lead to widespread adoption of Ada for savings and lending, bringing new users to Cardano's ecosystem.
• Long-Term Roi for Cardano: Although this is an early-stage research project, the insights gained will be invaluable in future development. The ultimate goal is to build a decentralized ROSCA platform that will drive significant adoption of ADA in Africa. By taking this initial step at a relatively low cost, we are positioning Cardano for long-term growth in a region where financial inclusion can have a transformative effect.