Please describe your proposed solution.

<u>Summary:</u>

With this proposal, we are offering the community an alternative (to IOG) that will make Project Catalyst a purely decentralized innovation fund. We see ourselves as a transition and bridge between an IOG-led Project Catalyst to a community-led Project Catalyst. Our goal is to continue the process towards a decentralized innovation fund within one year and to be able to present an improved version of Project Catalyst within that time frame.

Our proposal consist of two major aspects:

1. Operations of Project Catalyst (continuation of IOG management)
2. Facilitate the transition to a Project Catalyst DAO within one year

<u>Overview</u><u>:</u>

We propose to enhance Project Catalyst, the decentralized innovation fund and governance platform within the Cardano ecosystem, to further empower community-driven innovation and collaboration. We use what is already available, and evolve it into a DAO step by step.

<u>Main Objectives:</u>

a. Increase the quality of the outcome of Project Catalyst: In order to be able to justify the continued existence of Project Catalyst to the entire Cardano community in the future, we believe that the outcome of the funded projects must be significantly increased.

b. Enhance Impact Assessment: Develop a comprehensive framework to measure and increase the impact and outcomes of funded projects, enabling data-driven decision-making and demonstrating value to stakeholders.

c. Streamline Operations: Introducing domain experts improves the efficiency and transparency of administrative processes, especially proposal evaluation, achievement control, fund distribution, and accountability mechanisms.

d. Foster Inclusivity: Increase level of decentralised governance by empowering local and/or already established communities like Wada, Swarm, etc. to enhance accessibility and participation opportunities for community members to join Catalyst, submit proposals, engage in voting, and contribute to decision-making processes.

<u>Methodology:</u>

a. User Experience Optimization: Enhance the user interface and experience of the Project Catalyst platform, simplifying proposal submission, voting, and engagement processes for all community members.

b. Smart Contract Integration: Implement advanced smart contract functionalities to automate fund distribution, voting mechanisms, and project milestone tracking, increasing efficiency and reducing administrative overhead.

c. Impact Assessment Framework: Develop a robust impact assessment framework that combines quantitative and qualitative metrics (with domain experts) to evaluate the effectiveness, sustainability, and broader implications of funded projects.

d. Regular Rituals increase transparency and level of community involvement: (using YouTube Live, anybody can watch):

• Weekly syncs
• Governance (on demand)
• Monthly retrospectives
• 1 fishbowl per quarter
• 1 ask me anything per month
• Monthly sentiment requests (transparency, efficiency)
• Monthly KPI reviews
• Impactful outcome: amount and size of transitions / time
• Short-term
• Mid-term
• Long-term

<u>Team and Expertise:</u>

Our interdisciplinary team comprises very experienced professionals with a track record in blockchain technology, decentralized governance, and community management. We have successfully implemented similar projects, demonstrating our expertise in technical development, UX design, and impact assessment.

We have 3 steps:

a) Use existing/established and proven IOG team. (live today)

b) Use the team issuing this proposal (extended with first roles occupied by community members and of course IOG). (within 3 months)

c) Occupy all roles defined by community via a decentralized governance process hosted by this project team (IOG and this proposals team do have the same chances to participate as everybody else) (within 12 months)

<u>Evaluation and Accountability:</u>

We commit to providing regular progress updates, engaging in community feedback sessions, and adhering to transparent reporting standards. Independent audits and evaluations will be conducted to ensure accountability and verify the achieved outcomes.

<u>Process to develop of the right governance structure for a Project Catalyst DAO:</u>

• Understanding the Community: We need a deep understanding of the needs, values, and preferences of the Project Catalyst community. Therefore, we will engage in conversations, surveys, and discussions to gather insights and feedback on their expectations and desired governance mechanisms and continue the already ongoing conversation and discussion.
• Defining Roles and Responsibilities: Together with the community we will Identify the key roles required for the governance structure. This includes roles such as DAO lead, operations manager, advisors, community representatives, technical experts, and more. We will clearly define the responsibilities, decision-making powers, and term limits for each role.
• Decision-Making Mechanisms: We will determine the decision-making mechanisms that align with the community's objectives and values. This includes mechanisms such as voting, delegated voting (and potentially other voting mechanisms such as quadratic voting, or liquid democracy). We consider the balance between inclusivity, efficiency, and security in decision-making processes.
• Proposal Submission and Evaluation: Establish a process for proposal submission and evaluation. Define the criteria for proposal acceptance, evaluation metrics, and the role of domain experts in reviewing and providing feedback on proposals. We will consider implementing a new feedback loop to iterate on proposal quality and increase community participation.
• Funding Allocation: Determine how funds from the Cardano Innovation Fund will be allocated to projects without a centralised authority. Define criteria for evaluating project proposals, milestone verification processes, and mechanisms for fund distribution. Ensure transparency and accountability in the allocation of funds.
• Community Engagement: Foster active community engagement in the governance structure. Encourage open discussions, forums, and feedback channels for community members to participate in decision-making, propose ideas, and provide input. Regularly communicate updates, decisions, and outcomes to maintain transparency.
• Iterative Improvement: Establish mechanisms for continuous improvement of the governance structure. Regularly evaluate the effectiveness and efficiency of decision-making processes, gather feedback from the community, and iterate on the governance model as needed. Implement a feedback loop to adapt to the evolving needs of the community.
• Documentation and Transparency: Documentation of the governance structure, roles, processes, and decision-making mechanisms in a clear and accessible manner. Make this information readily available to the community to foster transparency and enable effective participation.

How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Our proposed solution directly addresses the challenge of the lack of stable and inclusive funding for innovation in the Cardano ecosystem. By enhancing Project Catalyst, we aim to bring the following benefits:

· Increased Inclusivity: Our solution will improve accessibility, making it easier for (local) community members to participate at any stage, e.g. in proposal submission, voting, and decision-making processes. This inclusivity ensures that diverse voices and ideas are represented, fostering a more robust and vibrant ecosystem.

· Streamlined Operations: By optimizing administrative processes, such as proposal evaluation (e.g. using domain experts out of community), fund distribution, and accountability mechanisms, our solution will enhance the efficiency and transparency of Project Catalyst. This streamlining reduces overhead and bureaucratic hurdles, enabling more efficient allocation of resources.

· Enhanced Impact Assessment: We will develop a comprehensive impact assessment framework that measures the effectiveness, sustainability, and broader implications of funded projects. This data-driven approach enables informed decision-making and ensures that funding is directed towards projects with the greatest potential for positive impact.

· Empowered Community: Our solution will empower the Cardano community by providing a platform where their innovative ideas can be realized and funded. Community members will have the opportunity to actively contribute to the development and growth of the Cardano ecosystem, fostering a sense of ownership and engagement.

· Accelerated Innovation: The streamlined processes, increased inclusivity, and enhanced impact assessment will collectively drive innovation within the Cardano ecosystem. By providing stable and accessible funding, we will facilitate the development of groundbreaking projects, products, and services that propel Cardano's growth and competitiveness.

Overall, our proposed solution will unlock the full potential of the Cardano ecosystem by ensuring stable funding, fostering inclusivity, streamlining operations, and promoting impactful innovation. It will empower the community, attract talented contributors, and position Cardano as a leading blockchain platform for sustainable and community-driven development, facilitated and led by the community.

How do you intend to measure the success of your project?

To measure the success of our project, we will employ the following key metrics and evaluation methods:

· Proposal Engagement: Measure the level of community engagement and participation in the proposal submission and voting processes. This includes tracking the number of proposals submitted, the number of community members involved in voting, and the diversity of participation.

· Impact Assessment: Develop and implement a robust impact assessment framework that measures the outcomes and effectiveness of funded projects. This framework will encompass quantitative and qualitative indicators, evaluating factors such as adoption rates, user feedback, economic impact, and ecosystem growth, e.g. amount and size of transitions / time.

· Community Feedback: Facilitate the regular exchange between community and the proposal team. Regularly assess the communities perception of our legitimacy, community satisfaction, gather suggestions for improvement, and address concerns to ensure ongoing alignment with community needs and expectations.

· Project Outcomes: Evaluate the outcomes and achievements of funded projects, considering factors such as successful implementation, milestones achieved, market adoption, and positive contributions to the Cardano ecosystem. This assessment will demonstrate the tangible results and value created through Project Catalyst.

· Financial Accountability: Conduct regular audits to ensure proper utilization and accountability of allocated funds. Verify that funds are being allocated according to the proposal guidelines and that project teams are adhering to financial reporting requirements. Introduce Peer-to-peer audits with domain experts (from community for community).

· Community Growth and Engagement: Monitor the growth and engagement of the Cardano community, tracking metrics such as the number of active participants, community-driven initiatives, and new collaborations sparked through Project Catalyst. This reflects the community's trust, involvement, and commitment to the project.

· Comparative Analysis: Conduct comparative analysis against previous iterations of Project Catalyst and other similar initiatives to gauge improvements in terms of efficiency, inclusivity, impact, and community engagement. This helps track progress and identify areas for further enhancement.

By employing these measurement strategies, we will have a comprehensive understanding of the success and impact of our project. Regular assessments, community feedback, and data-driven evaluations will guide ongoing improvements, ensuring that Project Catalyst continues to deliver value, empower the community, and drive the growth and development of the Cardano ecosystem.

Please describe your plans to share the outputs and results of your project?

Our plans to share the outputs and results of our project include the following:

· Transparent Reporting: We will provide regular and transparent reporting on the progress, milestones, and outcomes achieved through Project Catalyst. This includes detailed updates, summaries, and data-driven insights that highlight the impact of funded projects and Catalyst operations.

· Impact Reports: We will prepare comprehensive impact reports that showcase the positive changes and contributions made by funded projects and Catalyst operations. These reports will include quantitative and qualitative data, case studies, success stories, and testimonials from project teams and beneficiaries.

· Public Announcements: We will make public announcements through various channels to share significant achievements, milestones, and success stories. These announcements will be made on websites, blogs, social media platforms, and other relevant communication channels to reach a wide audience.

· Community Engagement Events: We will organize community engagement events, such as virtual conferences, webinars, or town hall meetings, where the outcomes and results of Project Catalyst will be communicated. These events will provide an opportunity for community members to interact directly with project teams, ask questions, and gain deeper insights into the impact created. We consider the community led events as best practice and aim to partner with that sub community to facilitate these events. We let the community decide how to continue with town hall meetings. Either to continue with Daniel and Kriss who do an amazing job from our point of view, or to put this in the hands of the local communities; in this case we need a global sync of the local town hall leads in order to assure that the communicated information is everywhere the same.

· Knowledge Sharing Platforms: We will leverage knowledge sharing platforms, such as forums, discussion boards, and online communities, to facilitate ongoing conversations and exchanges of ideas regarding the outputs and results of Project Catalyst. These platforms will encourage dialogue, collaboration, and learning among community members.

· Collaboration with Influencers and Media: We will collaborate with influential individuals, thought leaders, and media outlets within the blockchain and cryptocurrency industry to amplify the reach and visibility of our project's outputs and results. By leveraging their platforms, we can share success stories, impact reports, and showcase the value generated by Project Documentation and Online Resources: We will create comprehensive documentation, including whitepapers, case studies, and technical reports, to provide in-depth insights into the outputs and results of our project. These resources will be made available online for easy access and reference by the community and interested stakeholders.

By implementing these plans, we will ensure that the outputs and results of our project are widely shared, effectively communicated, and accessible to the Cardano community and beyond. This transparency and knowledge sharing approach will foster trust, inspire further collaboration, and promote the continued growth and impact of Project Catalyst.

What is your capability to deliver your project with high levels of trust and accountability?

Our capability to deliver our project with high levels of trust and accountability is demonstrated through the following factors:

· Expertise and Track Record: Our team possesses a proven track record and expertise in the relevant domains, including blockchain technology, decentralized governance, community management, and project execution. >100 years of experience in building teams, developing products, raising funds, scaling teams and claiming, taking and distributing responsibilities. Thomas was business owner within the Volkswagen Group, leading a $100M budget YoY, he built and led >20 international development teams with 200 active members involved. At Audi Business Innovation he learned to transform an organization from a hierarchical pyramid to a holacracy-based fast speed boat, with a high level of involvement and accountability from all internal and external team members, with integrated very fast decision making processes, millions of recurring savings and a highly reduced time to market. (This is the blueprint that we need for Catalyst!)

· Transparent Processes: We prioritize transparency throughout the project lifecycle. Our processes, including proposal evaluation, fund distribution, and impact assessment, are designed with transparency in mind. We adhere to clearly defined guidelines, provide visibility into decision-making, and ensure open communication channels to promote trust and accountability.

· Governance Framework: We have implemented a robust governance framework that includes checks and balances to ensure fair decision-making and mitigate conflicts of interest. This framework incorporates community input, peer review mechanisms, and external audits to foster accountability and uphold ethical standards. It is aligned on a holacracy approach to put the power in the hands of the community.

· Financial Stewardship: We uphold rigorous financial stewardship to ensure responsible management of allocated funds. Our financial processes include regular audits, compliance with reporting requirements, and a commitment to transparency in financial transactions and resource allocation. We intend to collaborate closely with IOG and use (purchase) its existing solution as long as no better (more efficient, more transparent, as stable) one is in place.

· Community Engagement: We actively engage with the Cardano community using regular rituals, seeking feedback, addressing concerns, and incorporating community input into decision-making processes. We value community participation and ensure that their voices are heard throughout the project's lifecycle, promoting trust and inclusivity. Our goal is to make ourselves useless and empower the community with clear processes and transparent roles to handover roles and processes from the project team to the community.

· Independent Verification: We are committed to independent verification and accountability. We welcome external audits, evaluations, and third-party assessments of our project's processes, outcomes, and financial management to provide an additional layer of scrutiny and assurance.

· Continuous Improvement: We embrace a culture of continuous improvement, consistently seeking opportunities to enhance our processes, address challenges, and adapt to evolving needs. We learn from feedback, incorporate lessons learned, and strive to implement best practices to ensure ongoing trust and accountability.

By combining our expertise, transparent processes, robust governance, financial stewardship, community engagement, independent verification, and commitment to continuous improvement, we are well-equipped to deliver our project with high levels of trust and accountability. We prioritize the interests of the Cardano community, uphold ethical standards, and strive to exceed expectations in every aspect of our project delivery.

What are the main goals for the project and how will you validate if your approach is feasible?

The main goals for the project are as follows (validated by little incremental steps):

<u>1) Secure and further develop stable and secure Project Catalyst:</u>

• Setup fund F11, F12, F13
• Communicate/host/facilitate/moderate events.
• Facilitate application & submission process.
• Facilitate review process (with domain experts)
• Facilitate voting (for all ada-holders)
• Measure milestone achievements (with domain experts)
• Distribute funds (for achieved milestones)
• Establish an agile, continuous, open and transparent accelerated learning process.

<u>2) Taking over the entire operations lead from IOG (roles occupied by community members):</u>

• Identify and document all necessary processes.
• Run retrospectives with IOG, CF, community members.
• Develop a gap analysis.
• Define handshakes, hand over processes and acceptance criteria with IOG project catalyst team.
• Define roles & accountabilities.
• Occupy roles with proposal project team and/or community members (applications possible for anybody, proposal team does pre-selection, community votes, onboarding and team building starts
• Handover starts between IOG project catalyst team and community-selected team.
• Party time: Handover is completed. We celebrate IOG and the community.

<u>3) Setting up a Project Catalyst DAO for Project Catalyst and handing over operations starting October 2024:</u>

• Streamlining and optimization of Project Catalyst processes
• Run regular retrospectives and effectiveness analysis to have as many roles as needed but as few as possible to maintain and increase transparency, agility and decision speed. (the bigger the organization, the harder it gets)
• Prepare setup for handover to community process.
• Identify interested and best-suited people out of community to take over dedicated roles (lead, operations, advisory, …).
• Onboard, train, educate and coach new members
• This proposal’s team steps into background and starts acting in supportive functions. Community-selected people take over the lead.
• Party time: Handover is completed. We celebrate the community.

This is being supported by:

· Enhance Community-Driven Innovation: The project aims to foster a thriving ecosystem of community-driven innovation within the Cardano network. This involves empowering community members to propose, vote, and receive funding for impactful projects, ultimately driving the growth and development of Cardano.

· Streamline Operations and Efficiency: The project seeks to streamline the administrative processes of Project Catalyst, making them more efficient, transparent, and user-friendly. By optimizing proposal evaluation, fund distribution, and accountability mechanisms, we aim to reduce overhead and ensure the smooth functioning of the platform.

· Measure Impact and Outcomes: The project emphasizes the development of a comprehensive impact assessment framework to measure the effectiveness, sustainability, and broader implications of funded projects. This enables data-driven decision-making, facilitates learning, and ensures that resources are allocated to projects with the greatest potential for positive impact.

To validate the feasibility of our approach, we will undertake the following steps:

· Market Research and Analysis: Conduct thorough market research and analysis to understand the needs, challenges, and opportunities within the Cardano ecosystem. This helps ensure that our proposed enhancements align with the ecosystem's requirements and that our goals are realistic and achievable.

· Technical Proof of Concept: Develop a technical proof of concept to validate the feasibility and functionality of our proposed enhancements. This involves building a prototype or conducting simulations to assess the technical viability and compatibility of our approach with the existing Cardano infrastructure. As long as no replacement is available, we re-use existing IOG functionality. It is also a serious and valid long-term option to keep the distribution of funds in the hands of IOG. But this must be evaluated.

· Pilot Testing: Conduct pilot testing with a subset of the Cardano community to gather feedback and assess the usability, effectiveness, and acceptance of our proposed enhancements. This provides valuable insights into any potential challenges and allows us to iterate and refine our approach before full-scale implementation.

· Stakeholder Engagement: Engage with stakeholders, including the Cardano community, project teams, and relevant experts, to gather their input and validate the feasibility of our approach. Their feedback, suggestions, and support are instrumental in shaping and refining our project's implementation strategy.

· Financial Viability Assessment: Conduct a financial viability assessment to ensure that the resources, funding, and operational requirements for implementing our proposed enhancements are feasible and sustainable in the long term. This assessment includes cost analysis, resource planning, and revenue generation strategies, if applicable.

By undertaking these validation steps, we can assess the feasibility of our approach, gather valuable insights, address potential challenges, and make informed decisions to ensure that our project goals are achievable within the Cardano ecosystem in the sense of the Cardano and Project Catalyst community.

Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Overview:

We will divide our activities into two main parts:

1) Day-to-Day Operation of Project Catalyst

1. Milestone 1: Operations of Fund 11
2. Milestone 2: Operations of Fund 12
3. Milestone 3: Operations of Fund 13

2) Transition of Project Catalyst into a DAO

1. Milestone 4: Taking over operations from IOG
2. Milestone 5: Starting a Project Catalyst DAO

Milestone 1: Secure and further develop stable and secure Project Catalyst Fund 11 (Timeline: Month 1-4):

• Setup fund F11
• Communicate/host/facilitate/moderate events.
• Facilitate application & submission process.
• Facilitate review process (with domain experts).
• Facilitate voting (for all ada-holders).
• Measure milestone achievements (with domain experts)
• Distribution of funds (for achieved milestones)
• Establish an agile, continuous, open and transparent accelerated learning process.

Milestone 2: Secure and further develop stable and secure Project Catalyst Fund 12 (Timeline: Month 5-8):

• Setup fund F12
• Communicate/host/facilitate/moderate events.
• Facilitate application & submission process.
• Facilitate review process (with domain experts).
• Facilitate voting (for all ada-holders).
• Measure milestone achievements (with domain experts)
• Distribution of funds (for achieved milestones)
• Establish an agile, continuous, open and transparent accelerated learning process.

Milestone 3: Secure and further develop stable and secure Project Catalyst Fund 12 (Timeline: Month 9-12):

• Setup fund F13
• Communicate/host/facilitate/moderate events.
• Facilitate application & submission process.
• Facilitate review process (with domain experts).
• Facilitate voting (for all ada-holders).
• Measure milestone achievements (with domain experts)
• Distribution of funds (for achieved milestones)
• Establish an agile, continuous, open and transparent accelerated learning process.

Milestone 4: Taking over the entire operations lead from IOG (Timeline: Month 1-6):

• Kick-off with current and new Project Catalyst team
• Identify and document all necessary processes, involved roles, time-frames, deliverables.
• Run retrospectives with IOG-team, Cardano Foundation, Emurgo, established (local) sub-communities and interested community members.
• Define a community owned vision “Project Catalyst in the perfect state (community driven, decentralized, fast, helping others, generating a lot of successful projects, increasing ada-transactions, …”
• Develop a gap analysis (where we are and where we want to be) for all new features (processes, tooling, infrastructure, etc.)
• Estimate value and effort of all new “features” and create the priorization: highest value, lowest effort first.
• Define handshakes, hand over processes and acceptance criteria with IOG project catalyst team.
• Define roles & accountabilities to be occupied by community.
• Occupy roles with proposal project team and/or community members (applications possible for anybody, proposal-team does pre-selection after commonly defined criteria, community votes)
• Onboarding and team building starts.
• Handover between IOG project catalyst team and community-selected team starts.
• Regular rituals (Weekly syncs, Governance meetings (on demand), Monthly retrospectives, 1 fishbowl per quarter as open space for everybody and all topics, 1 ask me anything per month, Monthly sentiment requests (transparency, efficiency), Monthly KPI reviews) start.
• Now we are facing an iterative step-by-step-process to get the control from 100% IOG to 100% project-team (with many community members)
• Party time: Handover is completed. We celebrate IOG and the community.

Milestone 5: Starting a Project Catalyst DAO for Project Catalyst and handing over operations starting October 2024 (Timeline: Month 7-12):

• Identify topics in the Project Catalyst operations which are intransparent, slow, insecure, wrong (anybody in the community is asked to raise the arm and share ideas, suggestions).
• Facilitate IDMs (integrated decision making) to commonly decide what to improve, how, by whom, by when.
• Start streamlining and optimization of Project Catalyst processes with “prototypes” (replace old things after new things are successfully implemented in a way which is now better for the community.
• Run regular retrospectives and effectiveness analysis to have as many roles as needed but as few as possible to maintain and increase transparency, agility and decision speed. (the bigger the organization, the harder it gets).
• Prepare setup for handover to community process (review documentation, role descriptions, overlapping accountabilities, efficiency of regular rituals, community benefit vs. effort of regular rituals, etc..
• Start hiring process: Identify interested and best-suited people out of community to take over dedicated roles (lead, operations, advisory, …).
• Do occupation of these roles as (successfully practiced multiple times from IOG to project team, changes within project team, etc.) proven in the meantime.Onboarding of new team members.
• Train new team members for their roles.
• Educate and coach them on a regular base to be the best they can be and to deliver the most they are able to for the Cardano community.
• Handover of this team to community-selected team starts: This proposal’s team steps into background and starts acting in supportive functions. Community-selected people take over the lead.
• Party time: Handover is completed. We celebrate the community for leading Project Catalyst.

Please describe the deliverables, outputs and intended outcomes of each milestone.

Overall, the milestones aim to establish and improve the operations of Project Catalyst, transition it into a decentralized autonomous organization (DAO), and empower the community to lead and drive the future of Project Catalyst:

Milestone 1: Operations of Fund 11

• Deliverables: Setup Fund 11, facilitate application and submission process, review process, voting process, milestone measurement, and fund distribution.
• Outputs: Fund 11 successfully established and operational.
• Intended Outcomes: Accelerated learning process, transparent and open operations.

Milestone 2: Operations of Fund 12

• Deliverables: Setup Fund 12, facilitate application and submission process, review process, voting process, milestone measurement, and fund distribution.
• Outputs: Fund 12 successfully established and operational.
• Intended Outcomes: Continued growth and improvement in Project Catalyst operations.

Milestone 3: Operations of Fund 13

• Deliverables: Setup Fund 13, facilitate application and submission process, review process, voting process, milestone measurement, and fund distribution.
• Outputs: Fund 13 successfully established and operational.
• Intended Outcomes: Sustained progress in Project Catalyst initiatives and projects.

Milestone 4: Taking over operations from IOG

• Deliverables: Identify processes, roles, and timelines, define community-owned vision, conduct retrospectives, develop gap analysis, occupy roles with community members, and establish regular rituals.
• Outputs: Smooth transition of operations from IOG to the Project Catalyst team.
• Intended Outcomes: Increased community involvement, decentralized decision-making, and efficient operations.

Milestone 5: Starting a Project Catalyst DAO

• Deliverables: Identify areas for improvement, streamline processes, conduct retrospectives, prepare for handover to the community, hire and train new team members, and facilitate the handover of leadership.
• Outputs: Setup of a Project Catalyst DAO with community-selected team members.
• Intended Outcomes: Fully community-led operations, increased transparency, agility, and decision speed.

Please provide a detailed budget breakdown of the proposed work and resources.

In order to keep the distribution of the budget flexible and at the same time transparent, we follow the approach of allocating it to the individual task areas on a percentage basis. We need the flexibility to be able to deploy and assign task-specific roles flexibly. Furthermore, it is very important to us to make the distribution of the funds as transparent as possible so that the community itself can judge the reasonableness and correctness.

<u>Tasks and budget allocation:</u>

a. Community Management: 15%

• Community communication and marketing activities
• Facilitation of events and round tables

b. Cohort Management: 25%

• Onboarding of new cohorts
• Monitoring and assisting of existing and new cohorts

c. Fund Execution: 10%

• through all stages of each funding round

d. Proposal Management: 15%

• Operations and execution of this proposal
• Coordination of tasks and activities
• Reporting of outcomes and ongoing activities

e. Project Catalyst Development: 10%

• Planing and transition into a DAO

f. Technical Development: 15%

• Smart contract integrations
• Platform development
• Voting app maintenance
• Website management

g. Other and unforeseen costs: 10%

• Buffer
• Licences

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

• Thomas Zuchtriegel, project lead, partner and project management

16 years of experience in the field of computer vision. Acted as intrapreneur at Audi and built teams that build software and media solutions for all Volkswagen brands globally. Co-founded 2 startups, partner of innovation agency called ‘metavers’, active community member since F3.

Link: Link: https://www.linkedin.com/in/thomaszuchtriegel/

• Dominik Tilman, Business expert

He has been an active part of the Catalyst community since Fund 3. Among other things, he has been a co-founder of IdeaFest and the Catalyst Swarm Initiative. He has successfully funded and executed several proposals. With his company Conu21 he mainly advises startups and actively helps in the founding phase to develop the right business model and to market the ideas sustainably.

Link: https://www.linkedin.com/in/dominikstumpp/

• Kai Thomas, Startup expert, serial entrepreneur

Co-founded and exited multiple startups, knows all kinds of funding and distribution methods, >20 years of experience in the field of computer vision. Co-founder and partner of an innovation agency called ‘metavers’.

Link: <https://www.linkedin.com/in/kai-thomas-7106ba45/>

• Konrad Storost, Customer and business development expert.

The man with the methodology tool box. With his structured and user focused approach he brings all groups to the next level. Joined and heavily contributed at Audi and metavers. Holacracy proven. Actively contributing in the blockchain space since 2017.

Link: <https://www.linkedin.com/in/konrad-storost-967028141/>

• Tobias Grod, Senior Controller and Data Analyst

An expert in tracking numbers and extracting the relevant information.

• Sebastian Feustle, Software engineer and architect.

He loves to solve (technical) problems independent of tech-stack: fast, reliable, sustainable and bulletproof.

Link: <https://www.linkedin.com/in/sebastian-feustle-53910861/>

• Sergey Kassil, smart contract designer & blockchain developer.

He has supported Thomas & team for years on all kinds of use cases.

Link: <https://www.linkedin.com/in/sergey-k-825a6a236/>

• Christian Wilser: Lawyer and data protection expert.

He has supported Thomas & team for years on all kinds of use cases.

Link: <https://www.linkedin.com/in/christian-wilser-007b85171/>

<u>Community Member:</u>

However, a major part of the tasks and daily activities will be carried out by elected and renowned members of the community. This includes the team of IOG to ensure a smooth transition.

The following areas are to be filled by the community:

• Community manager to foster communication, build, grow and manage community activities.
• Ambassador to attract new community members
• Scrum Master/Agile Coach: Train and guide Project Catalyst members to identify, manage and get rid of impediments; facilitate process optimizations.
• Domain experts for peer-to-peer reviews and project advisory.

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

We bring interested-based people together and empower them to build a Project Catalyst decentralized autonomous organization using established methodologies, partnering with known people/communities/organizations, and opening it up towards the Cardano community in the fastest and most sustainable way. This is the foundation to become most successful in the long term.

The cost of the project represents value for money for the Cardano ecosystem in the following ways:

· Enhanced Governance and Innovation: The investment in the project enables the enhancement of Project Catalyst, the decentralized governance and funding platform. By allocating resources to streamline operations, improve user experience, and implement impact assessment mechanisms, the project contributes to the efficient allocation of resources, promotes innovation, and empowers the Cardano community to drive impactful projects.

· Long-Term Sustainability: The project's budget ensures the stability and continuity of Project Catalyst's operations and administration. By allocating adequate funds for personnel, technical resources, marketing, and documentation, the project establishes a solid foundation for sustainable and ongoing development, creating long-term value for the Cardano ecosystem.

· Increased Community Engagement and Trust: The investment in community engagement events, marketing collateral, and external expertise fosters stronger community involvement and trust in the governance processes. These efforts encourage broader participation, diverse perspectives, and inclusivity within the Cardano ecosystem, ultimately leading to more robust decision-making and the development of high-impact projects.

· Measurable Impact and Accountability: The project's focus on impact assessment and reporting ensures transparency, accountability, and evidence-based decision-making. By allocating resources to develop an impact assessment framework and document project outcomes, the project provides stakeholders with clear visibility into the value created, demonstrating a commitment to delivering tangible results and accountable use of funds.

· Positive Ecosystem Growth and Reputation: The project's outcomes contribute to the overall growth and reputation of the Cardano ecosystem. By enabling successful project delivery, fostering collaboration, and showcasing impactful initiatives, the project attracts talent, investors, and collaborators, enhancing the ecosystem's credibility and positioning Cardano as a leading blockchain platform for sustainable development.

In summary, the cost of the project represents value for money for the Cardano ecosystem by enabling efficient governance, long-term sustainability, increased community engagement, measurable impact, and positive ecosystem growth. The allocation of resources towards these areas ensures that funds are utilized effectively to drive innovation, empower the community, and generate long-term value for all stakeholders involved in the Cardano ecosystem.