Please describe your proposed solution

Proposed Solution: Programmable Tokens (By UNBOX) for Brand Loyalty on the Profila Data Relationship and Permission Marketing Platform

Implementing scalable, programmable loyalty tokens through UNBOX on the Profila platform represents a revolutionary shift in customer engagement within the Cardano ecosystem. By leveraging the robust infrastructure of Cardano’s blockchain, our solution aims to enhance brand-consumer relationships through automation and personalisation. Traditional loyalty programs often struggle with inefficiencies and lack the flexibility needed to adapt to changing consumer behaviours. Our approach directly addresses these issues by enabling brands to easily mint their own loyalty tokens, allowing for a customised experience that rewards consumers for their engagement and participation.

The integration of programmable tokens on the Profila platform facilitates seamless automation of rewards, making it easier for brands to engage their customers meaningfully. By utilising smart contracts on the Cardano blockchain, brands can define specific actions that trigger rewards, ensuring that customers receive immediate and relevant incentives based on their interactions. This programmability enables brands to tailor their loyalty offerings to fit their unique marketing strategies and customer demographics, ultimately enhancing user satisfaction and driving more transactions.

Moreover, this initiative not only benefits individual brands and their customers but also contributes significantly to the overall growth and sustainability of the Cardano ecosystem. As brands migrate their loyalty programs onto the Profila platform, they introduce their customer bases to blockchain technology, promoting user engagement and fostering a broader acceptance of digital currencies. This influx of new users and transactions enhances the utility of the $ZEKE token and solidifies Cardano’s position as a leader in innovative blockchain applications. By creating an interconnected web of loyalty programs across various brands, we are set to stimulate economic activity within Cardano, which can lead to increased adoption and an enriched ecosystem for all stakeholders involved.

Problem Perception

We perceive the current landscape of loyalty programs as fragmented, inflexible, and ineffective. Traditional loyalty systems:

1. Operate in silos, preventing value transfer between programs
2. Lack real-time adaptability to consumer behaviour and market trends
3. Fail to provide meaningful engagement or value to consumers
4. Struggle to generate actionable data for brands
5. Often have high operational costs and complex management requirements

Our Approach

Our solution leverages the Cardano blockchain to create a unified, flexible, and value-driven loyalty ecosystem. We've chosen this approach for several reasons:

1. Blockchain Technology: Enables secure, transparent, and immutable transaction record
2. Smart Contracts: Allow for programmable, self-executing loyalty rules and reward
3. Tokenisation: Facilitates easy transfer of value across different loyalty program
4. Cardano's Scalability: Supports high transaction volumes necessary for a global loyalty platform
5. Low Environmental Impact: Cardano's proof-of-stake consensus aligns with growing environmental concern

Solution Components

1. Profila Platform: A privacy-preserving data relationship platform for managing loyalty across a multitude of brands
2. $ZEKE Utility Token: The foundation of the ecosystem, incentivising user actions and serving as a base for brand-specific token
3. Brand-Specific Tokens: Custom, programmable loyalty tokens built on $ZEKE, allowing brands to create unique reward system and unique tokens.
4. UNBOX-Developed Smart Contracts: Enable dynamic, programmable loyalty rules and instant reward distribution

Project Engagement

Our project will engage multiple stakeholders:

1. Consumers: End-users who will interact with the platform, earn and spend tokens
2. Brands: Businesses looking to create more effective loyalty programs and gain actionable customer insights
3. Developers: To build and maintain the platform
4. Cardano Community: As users, validators, and potential future developers on the platform

Demonstrating Impact

We will prove our impact through:

1. User Adoption Metrics: Tracking the number of active users and brands on the platform
2. Transaction Volume: Monitoring the volume and frequency of token transaction
3. Brand ROI: Measuring improvements in customer retention and engagement for participating brand
4. User Surveys: Gathering qualitative feedback on user satisfaction and perceived value
5. Data Quality Metrics: Assessing the actionability and depth of customer insights generate

Unique Aspects of Our Solution

1. Interoperability: Unlike traditional siloed programs, our solution allows value transfer between different brand loyalty program
2. Real-Time Adaptability: Smart contracts enable instant updates to loyalty rules based on user behaviour or brand strategies
3. Transparency: Blockchain technology ensures all transactions and rules are visible and verifiable
4. Cost-Efficiency: Reduced need for complex infrastructure lowers operational costs for brand
5. Data Control: Users have greater control over their data, choosing what to share in exchange for reward

Beneficiaries

1. Consumers: Gain more value from loyalty programs, with easier management and greater flexibility in using rewards
2. Brands: Achieve higher customer engagement, conversion and gain better insights, and reduce costs of loyalty program management
3. Cardano Ecosystem: Benefits from increased adoption and real-world use cases, driving value to the network through increased transactions.

Importance to Cardano

This project is crucial to Cardano for several reasons:

1. Real-World Adoption: Demonstrates Cardano's capability in handling a large-scale, consumer-facing applications
2. Smart Contract Showcase: Highlights the power and flexibility of UNBOX smart contract capabilities on Cardano in a commercial setting
3. Tokenisation Model: Provides a blueprint for other industries looking to tokenise assets or services on Cardano
4. Network Growth: The high transaction volume from loyalty programs will contribute to network activity and value
5. Community Engagement: Offers new opportunities for the Cardano community to participate in a widely-used DApp

By addressing the limitations of current loyalty programs through blockchain technology, our solution not only revolutionises customer engagement but also propels Cardano towards mainstream adoption in the business world.

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

Positive Impact on the Cardano Community

Our project will generate several positive outcomes for the wider Cardano community, primarily through increased adoption, network activity, and enterprise engagement.

Driving Adoption of Cardano’s Blockchain Technology:

By integrating programmable loyalty tokens into the Profila platform through UNBOX, we will demonstrate the practical, large-scale application of Cardano’s smart contract capabilities. Each brand that adopts our system will mint their own loyalty tokens on the Cardano blockchain, significantly increasing the number of token transactions and interactions across the network. This adoption will highlight the flexibility and scalability of Cardano for enterprises seeking to enhance customer engagement.

Increasing Network Activity and $ZEKE Utility:

The project will leverage $ZEKE as the foundational token for transactions across thousands of brand-specific tokens, all hosted on Cardano. This will result in:

• Higher transaction volumes and smart contract executions, benefiting Cardano’s network health and performance.
• Increased demand for $ZEKE, further driving its utility and liquidity within the Cardano ecosystem.

Showcasing Cardano for Enterprise Use Cases:

By offering a real-world solution for enterprise loyalty programs, the project serves as a model for other businesses considering blockchain solutions. It will showcase Cardano’s ability to handle complex, scalable, and customisable systems, setting a precedent for further enterprise adoption.

Measuring Impact

To quantify and qualify our impact, we will focus on the following metrics:

• Quantitative Measures:

• Transaction Volume: Tracking the number of loyalty tokens minted and transactions processed on the Cardano blockchain.

• User Engagement: Analysing the number of users actively engaging with the loyalty tokens, completing transactions, and redeeming rewards.

• Enterprise Participation: Measuring the number of brands joining the Profila platform and adopting programmable tokens.

• Qualitative Measures:

• Brand and Consumer Feedback: Gathering testimonials and feedback from brands and consumers to assess how the solution improves customer engagement and loyalty.

• Community Response: Engaging with the Cardano community to collect insights on how the solution aligns with the broader ecosystem’s values and goals.

Sharing Outputs and Opportunities

We will share our progress and outputs through multiple channels:

• Cardano Community Updates: Regular updates will be provided via forums, blogs, and social media channels to keep the community informed of milestones and success stories.
• Collaborative Partnerships: We plan to work closely with other projects and developers in the Cardano ecosystem who would like to benefit from the projects outcome, offering opportunities for collaboration and knowledge-sharing to enhance the broader blockchain landscape.

Through these efforts, the success of our project will bring significant value to the Cardano community, fostering greater enterprise adoption, increasing network activity, and contributing to the growth and recognition of Cardano as a leading platform for decentralised solutions.

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?

Capability to Deliver with Trust and Accountability

Proven Track Record and Expertise:

Our team has deep expertise in blockchain technology, loyalty systems, and data privacy, demonstrated by our ongoing development of the Profila platform (10 catalyst project delivered, one in progress) and successful partnerships, such as with UNBOX for blockchain integration on Cardano. We’ve already integrated $ZEKE as a utility token and are working with UNBOX to create programmable, brand-specific tokens.

Our technical partner, UNBOX, brings advanced experience in implementing Cardano’s smart contract capabilities, ensuring that we have the infrastructure and knowledge needed to execute this project securely and efficiently. UNBOX’s expertise in blockchain systems provides the credibility required to handle complex integrations and execute decentralised, scalable loyalty systems for thousands of brands.

Feasibility and Validation of Approach:

We validate our approach through several steps:

• Pilot Program: A pilot phase will allow us to test programmable tokens with a small subset of brands before full deployment. During this phase, we will validate smart contract functionality, user engagement, and the scalability of token issuance and rewards.
• Performance Metrics: Metrics such as transaction volume, user engagement, and brand adoption will be closely monitored to assess the performance of our solution. This will allow us to refine and optimise as we scale the platform.

The technical feasibility has been proven through previous development and deployment of $ZEKE and other catalyst projects, ensuring that the infrastructure for a blockchain-based loyalty program already exists within the Profila platform. The programmability and scalability of loyalty tokens will be further validated through smart contracts on Cardano.

Steps to Ensure Fund Management and Accountability

Financial Transparency:

• We have a rigorous financial management system in place to ensure proper allocation and use of funds. This includes:

• Budget Planning: Detailed and transparent budgeting to allocate funds to development, testing, marketing, and deployment phases.

• Financial Reporting: Regular reports will be shared with stakeholders, including funders, outlining the use of funds and progress against milestones.

• Milestone-Based Funding:

• We propose a milestone-based funding structure, where funds are disbursed in stages based on the completion of specific development goals. This ensures accountability, as each phase will undergo review before the next stage of funding is released.

• Governance and Audits:

• We will implement governance procedures, including third-party audits and regular reviews to ensure the project’s financial integrity. Additionally, smart contracts will automate certain reward distributions and transactions, providing further transparency and minimising risks of mismanagement.

• Reputation and Accountability:

• We are committed to maintaining the trust and reputation we’ve built within the Cardano and broader blockchain communities.

These capabilities ensure that we are well-positioned to deliver the project with high levels of trust, transparency, and financial responsibility, providing measurable value to both our partners and the Cardano ecosystem.

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

Milestone 1: Milestone 1: Infrastructure Setup and $ZEKE Token Upgrade

Timeframe: Months 1-3

A: Milestone Outputs:

• Integration of Cardano smart contract capabilities into the $ZEKE token.
• Creation of a token infrastructure to support the issuance and management of loyalty tokens.
• Conduct initial tests to validate the functionality of the $ZEKE token and its smart contract capabilities.

B: Acceptance Criteria:

• Successful implementation of $ZEKE smart contracts on the Cardano blockchain.
• Token system must be capable of minting loyalty tokens for brand-specific use cases.
• Preliminary testing results indicate that transactions execute correctly on the testnet.

C: Evidence of Milestone Completion:

• Testnet reports showing successful deployment and execution of smart contracts.
• Screenshots or logs from transactions conducted with the updated $ZEKE token.
• A technical report detailing the infrastructure setup and initial performance metrics.

Milestone 2: Milestone 2: Development of Brand-Specific Programmable Tokens

Timeframe: Months 3-6

A: Milestone Outputs:

• Development of smart contract templates for brands to mint their own loyalty tokens.
• Customization of token attributes for different brands (e.g., defining rewards, triggers).
• Pilot testing with a select group of brands to validate programmability and functionality.

B: Acceptance Criteria:

• Successful creation and minting of loyalty tokens for at least 2-3 pilot brands.
• Smart contracts must execute token rewards based on predefined brand actions (e.g., completing surveys, ad engagement).
• Pilot brands provide positive feedback on the token creation and reward system.

C: Evidence of Milestone Completion:

• Token transaction logs showing successful issuance of programmable tokens to pilot brands.
• Feedback reports from participating brands on the usability and effectiveness of the loyalty tokens.
• Screenshots or blockchain data showing reward triggering and token distribution.

Milestone 3: Milestone 3: Consumer Engagement and Loyalty Program Launch

Timeframe: Months 6-8

A: Milestone Outputs:

• Consumer-facing platform integration that allows users to earn and redeem programmable tokens.
• Full loyalty program functionality for early adopter brands and users.
• Monitoring tools to track user engagement with loyalty programs.

B: Acceptance Criteria:

• Loyalty tokens successfully distributed to users for completing actions like surveys, viewing ads, and engaging with brands.
• Users can redeem loyalty tokens for rewards or services (e.g., discounts, exclusive offers).
• Initial data on user engagement metrics (e.g., number of transactions, rewards claimed).

C: Evidence of Milestone Completion:

• User activity logs showing participation in loyalty programs and redemption of tokens.
• Reports from brands on consumer engagement and token redemption trends.
• Data visualizations or metrics showcasing early adoption and usage levels.

Milestone 4: Milestone 4: Scalability and Automation

Timeframe: Months 8-10

A: Milestone Outputs:

• Optimization of smart contracts for automated reward distribution.
• Performance testing to ensure the platform supports scaling to thousands of brands and high transaction volumes.
• Completion of security audits to ensure the robustness of the platform and data privacy compliance.

B: Acceptance Criteria:

• Smart contracts can handle automated token rewards at scale without performance issues.
• Platform successfully passes security audits, meeting privacy and compliance standards.
• System is capable of handling projected transaction volumes without significant delays.

C: Evidence of Milestone Completion:

• Security audit reports certifying the platform’s compliance and safety.
• Scalability test results showing the platform’s ability to handle increased traffic and token transactions.
• Logs of smart contracts executing automated rewards across multiple brands.

Milestone 5: Milestone 5: Brand and User Expansion

Timeframe: Months 10-11

A: Milestone Outputs:

• Onboarding of additional brands to the platform.
• Expanded marketing campaigns to grow consumer adoption and drive engagement.
• Collaboration with the Cardano community for knowledge-sharing and engagement.

B: Acceptance Criteria:

• 10 or more brands onboarded, with loyalty tokens issued and operational on the platform.
• Consumer base expands by 30% or more, as measured by user registrations and token activity.
• Positive feedback from the Cardano community on the open-source tools and project contributions.

C: Evidence of Milestone Completion:

• Reports detailing the number of brands onboarded and loyalty tokens minted.
• User growth metrics showing an increase in platform adoption.
• Documentation of open-source contributions shared with the Cardano community.

Final Milestone: Final Milestone: Full-Scale Launch, Monitoring, and Optimization

Timeframe: Months 11-12

A: Milestone Outputs:

• Full-scale launch of the loyalty program across all brands on the Profila platform.
• Continuous monitoring and optimization of the system to ensure smooth operation.
• Final reporting on project outcomes, including success metrics and lessons learned.

B: Acceptance Criteria:

• Loyalty programs fully operational for all brands and users, with high transaction volumes.
• System operates smoothly, with minimal downtime or errors, and meets performance benchmarks.
• Final project report shared with all stakeholders, including the Cardano community and grant providers.

C: Evidence of Milestone Completion:

• Final reports detailing platform performance, user and brand engagement, and transaction volumes.
• Stakeholder feedback collected through surveys or interviews.
• Publication of a project summary and roadmap for future development, shared via Cardano forums and community channels.

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

Project Team and Roles

UNBOX Team:

Blockchain Engineer 1 (Lead Developer):

Leads the design and development of smart contracts on the Cardano blockchain, implementing the programmable loyalty tokens and ensuring the system’s technical integrity.

Blockchain Engineer 2 (Security and Audit Lead):

Focuses on conducting security audits and ensuring that smart contracts are secure, scalable, and meet data privacy regulations. This role is crucial for safeguarding the platform as it scales.

Blockchain Integration Specialist:

Oversees the integration of Cardano blockchain into the Profila platform, ensuring seamless interaction between the loyalty tokens, user interface, and underlying blockchain infrastructure.

Profila Team:

Product Lead (Profila Loyalty Program): Luke Bragg

Manages the overall loyalty program’s development on the Profila platform, working closely with brands to customise token rules and optimise user engagement. Responsible for the strategic alignment of the program.

Lead Engineer (Token & Loyalty process integration):

Responsible for integrating programmable tokens with the loyalty system, ensuring seamless interaction between Profila’s platform and Cardano’s blockchain for automated and secure reward distribution.

Brand Team:

Brand Marketing Manager 1 (Loyalty Campaign Setup & Strategy):

Leads the design and setup of loyalty campaigns for their brand, including deciding on actions that trigger rewards and how tokens will be distributed. Works closely with Profila to ensure the program aligns with brand objectives.

Brand Marketing Manager 2 (Campaign Reporting & Optimisation):

Responsible for monitoring campaign performance, gathering data on customer engagement, and reporting the results to stakeholders. Provides insights on how to optimise future loyalty campaigns to improve efficacy.

Solution Architect: Shawn Jensen

Designs the overall system architecture, ensuring that the blockchain, platform, and all other components are technically aligned and scalable. They ensure the feasibility of the solution and that all technical requirements are met.

Project Manager: TBC UNBOX

Manages the entire project lifecycle, ensuring milestones are met on time and within budget. The project manager coordinates communication between all teams (UNBOX, Profila, brands) and ensures that stakeholders are updated regularly on progress, challenges, and next steps.

Please provide a cost breakdown of the proposed work and resources

Here’s a draft budget breakdown for a $780,000 (ca. ADA 2,000,000) project over 12 months, considering full-time, half-time, and quarter-time allocations for each resource based on seniority:

Full-Time Resources:

• Blockchain Engineer 1 (Lead Developer) – Full-time

• Annual Salary (Full-time): $180,000

• Allocation: 100% (Full-time)

• Cost: $180,000

• Blockchain Engineer 2 (Security and Audit Lead) – Full-time

• Annual Salary (Full-time): $150,000

• Allocation: 100% (Full-time)

• Cost: $150,000

• Lead Engineer (Token & Loyalty Process Integration) – Full-time

• Annual Salary (Full-time): $160,000

• Allocation: 100% (Full-time)

• Cost: $160,000

Half-Time Resources:

• Solution Architect – Half-time

• Annual Salary (Full-time): $180,000

• Allocation: 50% (Half-time)

• Cost: $90,000

• Project Manager – Half-time

• Annual Salary (Full-time): $120,000

• Allocation: 50% (Half-time)

• Cost: $60,000

• Product Lead (Profila Loyalty Program) – Half-time

• Annual Salary (Full-time): $140,000

• Allocation: 50% (Half-time)

• Cost: $70,000

Quarter-Time Resources:

• UX/UI Designer (Customer Experience) – Quarter-time

• Annual Salary (Full-time): $100,000

• Allocation: 25% (Quarter-time)

• Cost: $25,000

• Brand Marketing Manager 1 (Loyalty Campaign Setup & Strategy) – Quarter-time

• Annual Salary (Full-time): $120,000

• Allocation: 25% (Quarter-time)

• Cost: $30,000

• Brand Marketing Manager 2 (Campaign Reporting & Optimisation) – Quarter-time

• Annual Salary (Full-time): $100,000

• Allocation: 25% (Quarter-time)

• Cost: $25,000

Total Project Budget:

• Full-time Costs: $490,000
• Half-time Costs: $220,000
• Quarter-time Costs: $80,000
• Total: $780,000 (ca. ADA 2,000,000)

This breakdown provides a balance between full-time developers handling the core technical implementation and half-time and quarter-time resources focusing on strategic oversight, design, and brand integration.

The success of our project relies on our partnership with UNBOX for two key reasons: updating the existing $ZEKE token and creating customisable, programmable tokens for our brand customers.

1. Updating the $ZEKE Token: As the foundational utility token for the Profila platform, $ZEKE must be enhanced to support the functionalities required for programmable loyalty token

2. Creation of Programmable Tokens: The development of brand-specific loyalty tokens is a complex process that involves the integration of smart contracts on the Cardano blockchain

The dependency on UNBOX is essential because their specialised knowledge and experience in blockchain systems will enable us to deliver a robust, scalable, and secure platform that meets the evolving needs of brands and their customers. Without their involvement, achieving the level of customisation and operational efficiency required for our project would be challenging. Their expertise ensures that we can implement a future-proof solution that fosters meaningful engagement and drives sustained customer loyalty.

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

The proposed project budget of $780,000 reflects a strategic investment in the Cardano ecosystem that delivers substantial value for several reasons.

Value for Money Justification:

• Expertise and Experience:

The costs associated with the project, particularly for full-time developers and engineers, are consistent with industry standards for highly specialised blockchain talent. According to the Bureau of Labor Statistics, the average salary for software developers in the U.S. can range from $110,000 to $160,000 annually, depending on experience and skill level . In blockchain development, salaries can be even higher due to the niche expertise required. The compensation for the roles in our project, such as Lead Developer and Security Lead, aligns with these averages, ensuring that we are engaging top-tier talent capable of delivering a secure and scalable product.

• Market Trends:

Freelance rates for blockchain developers also support our budget allocations. According to platforms like Upwork and Toptal, experienced blockchain developers typically charge between $75 and $200 per hour, which translates to annual compensation levels that corroborate our project’s cost structure . Given that our team will be engaged for an extended period, a structured salary model offers better value compared to freelance hiring.

• Comprehensive Development:

The budget encompasses not only the direct salaries of team members but also ensures adequate time for research, testing, and deployment of the loyalty token infrastructure on the Cardano blockchain. The involvement of various specialists—from blockchain engineers to marketing managers—facilitates a well-rounded approach that covers technical, user experience, and market engagement aspects of the project.

• Long-Term Impact:

Investing in programmable loyalty tokens and integrating them into the Profila platform enhances brand engagement and user participation. This initiative is expected to drive transaction volumes and user retention, ultimately benefiting the Cardano ecosystem by increasing the usage and visibility of the blockchain. The expected growth in adoption and transaction activity can lead to higher demand for $ZEKE tokens and an increase in the overall market value of the Cardano network .

• Strategic Ecosystem Growth:

As brands adopt the loyalty token system, the increased number of transactions on the platform generates transaction fees that flow back to the Cardano ecosystem. This model not only supports sustainability but also creates a network effect that enhances Cardano's position as a leading blockchain for innovative solutions.

Conclusion:

In summary, the project’s budget is justified through a combination of industry-standard compensation, the complexity of blockchain development, and the strategic advantages it offers to the Cardano ecosystem. By investing in this initiative, we are poised to deliver significant long-term value that outweighs the initial costs. The integration of programmable tokens into the loyalty landscape represents a compelling opportunity for growth and innovation within the Cardano community.