Please describe your proposed solution.

Our proposed solution is a smart contract at a stakepool's reward address that disburses rewards accordingly:

• Pool takes 4% as the SPO configurable margin.
• Delegators of a single pool are ranked according to magnitude and duration of delegation.
• Delegators are eligible for a portion of the SPO configurable margin based on their ranking.

An example disbursement scheme using this contract:

• Thresholds for margin to delegators are powers of two (millions of ADA).
• Initial delegators under 2M ADA and over 16 months are eligible for +4% margin in addition to their rewards.
• Initial delegators under 4M ADA and over 8 months are eligible for +3% margin + rewards
• Initial delegators under 8M ADA and over 4 months are eligible for +2% margin + rewards
• Initial delegators under 16M ADA and over 2 months are eligible for +1% margin + rewards

The smart contract disbursement scheme described above, essentially amounts to a loyalty program for delegators. The contract might also be described as an initial delegation offering.

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

Small SPOs face a paradox: no rewards without delegation, and no delegation without rewards. This solution aims to equip small SPOs with yet another tool to overcome this challenge. A healthy base of small SPOs is critical to the success of the Cardano blockchain, and enabling the success of small SPOs will increase the decentralization and the overall health of the network.

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

The success of this proposal can be measured using the following

• github stars, forks, downloads (clones)
• the number of SPOs using the contract at their rewards address
• the number of delegators receiving extra rewards
• the availability/usability of project documentation

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

The software developed under this proposal will be released open source.

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

I am a professional software engineer with 7+ years of experience building and deploying production grade solutions. I have experience using a diverse array of tooling, from embedded systems to serverless microservices. I have a deep understanding of the requirements of large scale software applications and fluency in the technical underpinnings of fluid user experience. The proposed solution is technically simple, however the value lies entirely in the quality of execution. To this end, documentation is a primary deliverable and a vector towards adoption of the proposed solution. A full solution includes not only the software implementation, but also the tests to prove the solution works, and the documentation to ensure that people can use the solution easily.

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

The main goals for the project include the development of the following

• delegator rank algorithm (by delegation amount and duration)
• plutus smart contract that leverages delegator rank to disburse stake pool rewards base on thresholds (delegation amount and duration)
• automated tests that demonstrate functionality
• documentation that helps utility

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.

A numbered list of milestones:

1. Technical specification and gathering requirements (~40hrs)
2. Prototype implementation (~160hrs)
3. Prototype refinement and alpha release w/ round of user feedback (~120hrs)
4. Beta release w/ round of user feedback (~40hrs)
5. First official release (~40hrs)
6. Capstone documentation (~800hrs)

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

Deliverables corresponding to above milestones:

1. Deliverable: text based technical specification documents
2. Deliverable: a working prototype that delivers MVP functionality
3. Deliverable: a second draft that refines and improves the MVP
4. Deliverable: an MVP is delivered to customers (SPOs) and feedback is gathered
5. Deliverable: customer feedback is incorporated and official release is broadcast
6. Deliverable: documentation is developed and published

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

6 (~500hrs) months of development, at a industry standard rate of ~$100/hr

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

Schuyler Duffy is the primary implementer and project lead.

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

A dedicated thorough approach is valuable even in mature economies. My commitment to the community and to myself, is to deliver a quality of work that is above average.