Please describe your proposed solution

We are developing cPoker, a decentralized poker game on the Cardano blockchain. This solution addresses the lack of decentralized poker options, providing a fair, transparent, and trustless gaming experience. Our project engages present and future Cardano community members by providing a new, exciting way to use the ADA token and the wider gaming community by offering a fair and secure poker platform.

This project reuses two of our previous projects: "Cardano After Dark - Hold’em poker", and "DRED - Decentralized REDis State Channel", along with the output of our submission for the Emurgo hackathon: "zk-poker", as a base for a PoC, simulating three decentralized poker agents interacting through a state channel: executing a three-players poker hand.

PoCs

We have developed two Proof of Concepts (PoCs) progressively to demonstrate our project's key functionalities:

• Command Line PoC: The PoC serves as an integration test for the cryptographic module, group encryption/decryption, poker logic, and communication protocols.
• WebApp PoC: This PoC integrates the basic modules into a web application, providing a preliminary view of how the final application may look. Please note that the final UI will differ from this PoC.

PoC for the purpose of review: we recommend focusing on the WebApp PoC:

• Access the PoC here: https://tinyurl.com/cpoker-poc
• See the Interaction logs: to observe the interactions between decentralized agents (application, cryptographic, and communication logs), run the PoC in your browser, press F12 to open developer tools, and check the Javascript Console.

To aid in understanding, we have included a series of video explaining the PoC's functionality and highlighting the critical aspects of the poker protocol and interactions with decentralized agents (dAgents). Watch the videos below:

<https://www.youtube.com/watch?v=sOVCTPa5ZB0><https://youtu.be/ERWI-xHvXE0>Solution

Starting from the above PoCs, we're building an interactive, real-time, decentralized app, which will allow us to play non-custodial poker through the Cardano blockchain.

We have developed a detailed user acquisition and engagement plan to attract and retain players from existing platforms. This includes targeted marketing campaigns, partnerships with poker influencers, and community engagement events. We will also offer onboarding sessions to gather user feedback and refine the game for optimal UX.

We define clear metrics for success and impact, such as user growth, transaction volume, and community engagement. These metrics will be monitored and reported regularly to ensure transparency and accountability.

Once the project is finished, we will present the product both to the Cardano community and to the general public. The impact will be demonstrated by the number of users using the application and on the total value of ADA or test-ADA played on the contract.

Another relevant impact factor for the team is the reuse of public code / infrastructure to create other real-time applications on Cardano, which will be measured by the number of interactions with other teams, and by the number of applications using the state channel infrastructure.

Identity

Even though Identity is not part of this proposal, we are aware of KYC and the need for Identity. We have and will continue looking into different Identity Solutions, for this we have met with the Founders of ProofSpace, IAMX and we are in the Alpha program of CF Identity Wallet. Due to the limited resources we have, we need to be selective about what functionality we pursue right now and since a working solution has priority now, Identity is not in scope just yet.

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

Positive Impact on the Cardano Community

Our project is a unique poker application for the Cardano blockchain that will significantly enhance the community by:

• Increasing user engagement: our application will attract a new segment of users, boosting the total value locked (TVL) on the Cardano blockchain and enhancing its utility for a broader audience
• Setting a precedent for real-time dApps: our project will serve as a concrete example for future developers, showcasing the potential of interactive, real-time decentralized applications (dApps) on Cardano

Measuring impact:

We will measure the success and impact of our project through a combination of metrics:

• Quantitative metrics:
• Completion of a fully functional poker dApp.
• Number of active users engaging with the dApp. Success would be having 100 users one month following the release, and 1000 users six months after.
• Number of transactions within the game. Success would be having &gt; 20 000 transactions in the month following the release, and &gt; 200 000 transactions by six months after the release.
• Sustainable revenue generation for the project treasury and contributors, that can be reinvested. Success would be being able to generate at least 25k ADA / month, starting from six months after the release.
• Growth in the TVL on the Cardano blockchain: success would be to have surpassed 500 000 ADA in value locked six months after the release, and still having the application user-base grow rapidly (e.g. increase 10% to 30% month-over-month).
• Qualitative metrics:
• Community feedback and engagement levels. Success would be having good feedback, and high engagement levels.
• User feedback gathered during onboarding sessions. Success would be to have mostly positive feedbacks (to be delivered along with closeout reports)

Sharing outputs and opportunities:

We will share the result and the opportunities arising from our project with the community, through various channels to ensure maximum visibility and engagement:

• Community updates:
• Regular updates on our Twitter, Discord, and Website, and during ATH (After TownHalls) sessions, to keep the community informed about progress and milestones.
• Open source contributions:
• The project, once completed, will be publicly available, except for core business modules holding cryptographic and communication features. This will encourage transparency and collaboration.
• Educational Initiatives:
• Organizing workshops and webinars in collaboration with Cardano's developer community to share our knowledge, discuss our solutions and promote further R&amp;D in decentralized multi-player games and interactive dApps

Future impact and innovation:

The output of this project will be used in future R&amp;D activities, driving innovations in areas such as, but not limited to:

• Gaming: Enhancing interaction in decentralized gaming applications.
• Based on this technology we could build backgammon and all kinds of games really.
• Decentralized Governance: Exploring new possibilities in decentralized decision-making processes.
• Based on this technology we could build new governance mechanisms with complex rules, and decentralized real time interaction.
• Enhanced Real-Time Finance (DeFi) Applications: The RTDA model can be adapted to other areas in decentralized finance (DeFi).
• For instance, real-time trading platforms or prediction markets could benefit from a similar approach, enabling more rapid and complex, user-to-user transactions.

By leveraging the knowledge and outputs from this project, we aim to stimulate further advancements and explore new applications, continuously adding value to the Cardano community.

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?

Our Capability to Deliver can be demonstrated by what we have already done, what we are doing, how we are working together, and by the reputation of the team members:

• We developed DRED, a foundational library at the core of this proposal. The DRED project was managed and successfully delivered by this same team.
• We are developing a commercial gaming application using DRED, of which we have a working PoC.
• The team is capable, meets regularly, and has a good track record of github commits, and of published documentation and videos for the current projects.
• We already worked on other Cardano projects, and we are technically ready to take the challenge.
• We have been working on this project for more than a year. We know the technical challenges well because we put our own resources to work on this project.
• Our team members are well-known in the community, joining and organising community events on a regular basis for years by now. In the past, we also organized and participated in Challenge Teams, such as the Open Source CT.

The feasibility of our approach is validated according to:

• Scientific approach: We started from Kaleidoscope and ROYALE (IOG funded research papers), and we proceeded by steps that we can reproduce, understand, explain, and innovate beyond the limits of the papers.
• Incremental progress: We broke down the problem in subproblems, which makes it easier to solve different aspects: Cardano After Dark for Poker UI ; DRED to implement a State channel, zkpoker: to enable zk-proof of validity, and our latest PoC demonstrating we can perform a TEG-Shuffle and run a poker protocol with encrypted cards.
• Pragmatic approach: Incremental testing during development, incremental assessment of the deliverables for the project milestones.

<u>Risk Management</u>

Technical Challenges: Issues may arise in integrating complex cryptographic algorithms and decentralized protocols with Cardano’s existing infrastructure.

• Mitigation Strategy:
• Iterative Testing: Each development phase will include thorough unit testing, integration testing, and stress testing of our cryptographic algorithms and smart contract integrations. This approach will help us identify and resolve bugs before the next phase.
• Community Feedback Sessions: Regular feedback sessions with early users and the Cardano developer community will allow us to gather insights and address usability or performance bottlenecks. This feedback loop also ensures continuous improvement.
• External Audits: We have talked to independent third-party auditors to assess our smart contracts, cryptographic implementations, and game logic. Yet, while acknowledging the importance, we had to put this out of scope for this current proposal.

Resource Allocation: Team turnover, market volatility, and unforeseen financial constraints can disrupt project progress.

• Mitigation Strategy:
• Practicing cross-training: cross-training each other is going to make sure that our team has additional resilience, this of course has to be balanced with going fast and efficient progress.
• Contingency Plan: In case of sudden team member loss, we have talents throughout our network within the Cardano ecosystem, including professionals and developers.
• Financial Reserve: Maintain a financial reserve of 10% of the total budget, allocated specifically for emergencies such as hiring external consultants or acquiring additional development resources to avoid project delays.

Community Engagement: The decentralized nature of the project makes user engagement and community buy-in critical to success, especially in the early stages.

• Mitigation Strategy:
• Structured Communication Plan: We provide Monthly updates on project progress through social media, our website, and of course our Milestone report to Project Catalyst.
• Feedback Mechanisms: Host monthly AMA sessions and virtual town halls to directly address user concerns, gather feedback, and adjust our roadmap based on community needs.
• Incentive Programs: Implement a user incentive program for alpha and beta testers to ensure we receive detailed feedback and foster strong early adoption.

Regulatory Compliance and Legal: Varying regulatory environments around online gambling and cryptocurrency transactions could affect the deployment of cPoker in certain jurisdictions.

• Mitigation Strategy:
• Legal Counsel: We had and will continue to have legal counsel regarding digital gaming and blockchain to ensure legal compliance.
• Open Source Strategy: The bulk of our work will be made open source
• Digital Identity Solutions: we have done preliminary research already and have talked to the top DID solution providers in the Cardano ecosystem, with that being said DID is not within our scope just yet.

There are other risks, which we describe in our 30 page Business-plan, for your sake dear assessors and voters we will list the following risks we have identified and planned mitigation for:

• Player collusion
• Gambling Addiction
• Exploitation by experts
• AI Bot Farming
• Adoption and Market Risk

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

Milestone 1: Milestone 1:

M1 : UI and Smart Contract Integration (1 month)

This milestone involves integrating the DRED communication system with the dApp so players can communicate with each over the DRED network, which includes finishing the UI integration. An initial integration of the smart contract will also be added, even if it does not yet have all the final functionalities.

• Milestone Outputs:
• Connection of poker game context with the UI
• Partial implementation and integration of smart contract features.
• Acceptance Criteria:
• Demonstrated connection between poker game context and UI
• Showcased initial smart contract features
• Evidence of Milestone Completion:
• Video demonstration of the integrated UI and poker game context
• Report outlining the requirements and implementation details of the smart contract

Milestone 2: Milestone 2:

M2: Development of cPoker Application (1 months)

Progressive development of the application, including implementation of poker rules and risk analysis for poker operations.

• Milestone Outputs:
• Progressive development on cPoker application
• Documentation of risks associated with building and operating a decentralized poker platform.
• Acceptance Criteria:
• Fully functional cPoker application with all poker rules
• Risk assessment document
• Evidence of Milestone Completion:
• Source code of the public part of the dApp
• Demonstration video showcasing the cPoker dApp functionalities
• Risk assessment document

Milestone 3: Milestone 3:

M3: Completion of cPoker MVP and User onboarding (1 months)

This milestone is about completing the dApp, including smart contract functionalities, real-time communication, and in-game bets. It also covers the onboarding of alpha users.

• Milestone Outputs:
• Complete cPoker MVP with integrated smart contract, poker protocol, and real time communication
• alpha users onboarding
• Acceptance Criteria:
• Fully functional cPoker MVP with integrated in-game bets and smart contract
• Successful onboarding of initial users
• Identification and fixing of any bugs (if applicable)
• Evidence of Milestone Completion:
• Source code of the public part of the dApp, and smart contract
• Demo video showcasing the complete cPoker MVP
• User feedback reports from onboarding sessions.

Final Milestone: Final Milestone:

Project close-out and public release (1 week)

This milestone focuses on the delivery of the project closeout report and final communications, including the public release of the project.

• Milestone Outputs:
• Finalized version of the cPoker application (same as in M4), incorporating feedback from the alpha test
• Acceptance Criteria:
• Completion and public release of the cPoker dApp with integrated in-game bets
• Launch of an alpha version on the testnet
• Evidence of Milestone Completion:
• Final Source code of the public part of the dApp, and smart contract.
• Comprehensive demo video of the final cPoker MVP
• Project close-out report and video

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

P.Suzzi, Developer, SW Engineer - www.linkedin.com/in/psuzzi

• Responsible for co-development of the dApp.

Jake G. - Developer, SW Engineer - https://www.linkedin.com/in/jake-gonzalez-551306b4/

• Responsible for co-development, testing of the dApp, cryptographic research &amp; implementation as well as Scientific literature review.

Randall - Software architect, 20+ years exposure to cryptography, accounting, and application development - https://www.linkedin.com/in/randall-harmon-aa52765/

• Designing the architecture and ensuring scalability and security of the system.

Seomon - Project Manager, IT Consultant, Poker SME, Cardano Ambassador, Intersect Marketing-Working-Group co-lead.

• Managing the project-, timelines, milestones, alignment, reports and community engagement, marketing.

Please provide a cost breakdown of the proposed work and resources

Our budget calculation is based on a detailed analysis of team size, location, and market rates, ensuring we maintain a budget on the average in our respective locations, and considering additional costs and possible risks.

Core Team Composition:

• Team size: 4 members
• Locations: U.S. (CA, TX), E.U. (AT, DE)
• Total monthly expenditure: ADA 50k / month

Personnel costs: ADA 40k / month

• 1 Software Architect: 80h / month
• 1 Project Manager: 80h / month
• 2 Developers, each working 80h / month

Additional costs: ADA 10k / month

• Infrastructure: covering server costs, sw licenses, and cloud services
• Professional services: legal consultancy, code auditing through third party code reviews, and training where needed.
• Publicity, marketing, community engagement: Activities aimed at promoting the project, incentivizing, and engaging with the community.
• Contingency funds: 10% of the total, allocated for unforeseen circumstances such as increase in project complexity, team member replacements, market volatility.

Additional funding:

If the project exceeds the initial budget allocation and the contingency funds, alternative funding sources will be considered. This may involve requesting flexibility from the team, such as working additional hours without extra compensation.

• For instance, if the work gets more complex, the team agrees upscaling the work from 50% FTE up to max 80% FTE.

No dependencies

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

The project represents significant value for money, for several key reasons:

High potential user base:

• In the short term we are targeting poker players of the Cardano community, for which we have ~70k active accounts in 2023. We assume that 3500-7000 Cardano users have an interest in poker.
• In the medium term we are targeting poker players whose overall cryptocurrency user base is over 400m people in 2023. We estimate 6-12m cryptocurrency users in 2023 are interested in poker.
• In the long run the application will target a potential volume of 120M+ online poker players. (world domination!)

Benefitting the Cardano ecosystem

• By having the first fully decentralized Poker application in the Blockchain-space, builders in the blockchain space will see the advantages of building on Cardano.
• This project serves as a demonstration of real-time interactivity for dApps, providing a model for future projects, not just within CAD but for the Cardano ecosystem and beyond.

Carefully considered project costs:

• Personnel Costs: ADA 120 k (40k/mo): covers compensation for a team of 4, working between 50% and 80% FTE for 6 months, at a reasonable price to attract and retain the talents needed for project success.
• Additional Costs: ADA 30k: covers infrastructure costs, consulting fees, community engagement, contingency fund to cater for risk and market volatility.
• Team costs below market rates, considering locations, roles, and skills required
• American Team Members: the average wages for contracting Sr. Software Engineers in the United States (e.g. California) are well above 10k USD/month (~22k ADA/month).
• European Team Members: Wages in Europe (e.g. Germany), are around 6.5k EUR/month (~15k ADA/month).
• This cost structure ensures we maintain high-quality work at a reasonable price.

Please understand that, even though this undercuts our usual corporate salary, this is an amount we decided on and feel comfortable with.