Please describe your proposed solution.

<u>Problem statement: Onboarding Emerging Markets onto Cardano</u>

Commodity markets in emerging economies are ready for disruption and to leapfrog into the future. Whilst there have been several attempts to address some of the challenges such as market access and financing issues, we believe that there is still enormous potential to bring our learnings from Sri Lanka into the East African markets. The impact for underserved commodity and primary producers is enormous.

Further, there are a number of issues regarding the authentication of products. The issues surrounding counterfeit products and fraud are rampant in many of these markets. The role for oracles to ensure that certain batches have been certified cryptographically is a solution that is required in order to build more trust in the region and progress to the next phase of global growth for these producers.

<u>Our Solution</u>

We currently have a prototype tokenization and traceability module called the Winter Protocol, which will serve as the modular architecture for how the technology interacts with the real world. The proposal looks to turn this prototype into a MVP and onboard real-life producers in using the technology.

Our approach ties together the real world use-cases in the commodity sector with innovative blockchain solutions.

• Market access for underserved small-holder producers: our solution (Palmyra.app) directly improves the opportunities for small-holder producers to tap into the global market. This ultimately means tangible revenue opportunities for these businesses.

• RWA tokenization and traceability: Our open-source Winter Protocol provides the required tooling to trace products from origin. Further the tokenization of these RWAs opens opportunities not yet available before - including in the future access to finance, access to a broader base of buyers and greater transparency.

• Verifiable Digital Credentials and Authenticity Proof: We intend to implement an innovative oracle solution which ensures that products are quality tested. In partnership with the Cambridge Tea Consultancy, we will introduce the 5S Tea Categorisation System (already piloted in Kenya) to ensure that producers have a way to cryptographically verify that their products meet a certain quality standard. This is essential to build trust in global markets and will give an innovative edge to producers - this will have tangible revenue benefits.

Our project’s core mission around economic empowerment and opportunity inclusion is very much aligned with the work that Cardano has done in this region to date. We believe it would be a great addition to empower businesses and individuals in the region and further demonstrate real-world use cases for blockchain technology.

The first commodity that the project will onboard is speciality tea, leveraging the learnings and contacts from the Fund 10 proposal. A successful MVP deployment of this solution will act as the launchpad for onboarding other underserved commodities in the East African region.

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

We believe that there is still quite a large gap between the accessibility of the Cardano ecosystem for real-world applications. Whilst there are a number of projects already building solutions, we believe that there is a need to accelerate these efforts to broaden the impact and accessibility the Cardano ecosystem has to offer.

• Opportunity Inclusion for Producers via Cardano Technology: As such, our platform and efforts are very much focused on providing an accessible entry point for underserved businesses in emerging markets such as East Africa. When successful, Palmyra and our ecosystem framework will onboard tens of thousands of producers and businesses from the commodities sector. This will translate into billions of dollars of transactions as well. Real utility and demand to leverage the Cardano blockchain.

• RWA Tokenization Use-cases: We believe that the next phase of adoption will come bridging the real world into the digital world. One of these themes includes the tokenization of real-world-assets. Our success in Sri Lanka can be applied again into East African markets; opening up a new paradigm on how markets trade, with embedded certifications, traceability and the ability to trade tokenized assets.

• Open-source Onboarding Blueprint: As for tangible tools, key learnings, methodologies and frameworks developed through this project will be open-sourced for other RealFi projects to adopt as part of our Phase 2 Ecosystem Building Blueprint. This enables other projects in the ecosystem to leverage a practical guide on how to effectively onboard regulators, businesses and other stakeholders onto Cardano.

• Strengthening Local Partnerships: The Cardano Community already has quite a strong footprint in Kenya and other surrounding East African jurisdictions. This project will further lay the groundwork for future collaborations and projects in the region. Further, this project provides an opportunity to partner with existing community members and talent in the region - further demonstrating that Cardano is a leading blockchain ecosystem in the region.

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?

<u>Capability:</u>

Team and subject matter expertise: We believe our core team is uniquely positioned as global subject matter experts; a requirement for onboarding commodity producers onto Cardano and succeeding with this project.

Below you can find information about the team and our past experiences which are critical for the successful delivery of the proposal.

• Notably, Daniel Friedman, the CEO of zenGate is known for being an early team member of IOG and participated to launch Cardano. As the former Business Develop Manager for IOG, he has spent a number of years developing relationships, entering new jurisdictions and deploying national-level solutions. He is a reputable voice in the Cardano community.

• Sam Lambert, the COO of zenGate has management consulting experience, working with executives from some of the largest global institutions from banks, insurance and telecommunication companies. His ability to run workshops and manage stakeholders are essential skills to deliver on this project.

• Joyce Maina, is a global tea expert and has deep experience working with all types of stakeholders in the tea sector. As a Kenyan, Joyce has deep expertise of the local market having spent the first half of her career in the region. Joyce has created a Speciality Tea Categorisation System with the International Trade Centre (UN and WTO backed organisation) - this index will be a crucial framework we look to onboard. She is a Director of the European Speciality Tea Association and Founder of Cambridge Tea Consultancy.

• Darrell O'Donnell is also a subject matter expert building governance frameworks and has consulted with IOG in the past. He has extensive experience working with the Atala team and is a credible expert in this industry.

• The core team is supported by the zenGate team of 10+ who are experts across working with regulators, public policy, development institutions and finance.

<u>Feasibility</u>:

• Onboarding tea producers and stakeholders to adopt the ecosystem governance framework. Our goal is to onboard 10 new producers and 10 buyers to adopt the new framework within 3 months of finishing the proposal project.

• Development of a system utilizing on-chain digital credentials under the hood, embedded into a broader system such as the Palmyra Platform where buyers and sellers can interact with one-another.

• The 5S Tea Categorisation System developed by Joyce Maina and the International Trade Centre (ITC) has already been successfully piloted and prototyped in Kenya with the Purple and Speciality Tea Association (PSTAK). In partnership with the ITC for the Market Access Upgrade Programme (MARKUP), Joyce launched a tasting competition using this system with a panel of judges from the European Speciality Tea Association - this system and competition was a success, with a number of award winning producers from Kenya, Rwanda and Tanzania. The video showcasing the joint work with the ITC can he viewed in this link.

• Since then, Joyce has run a number of webinars on these topics. One example includes a Webinar with the European Speciality Tea Association showcasing producers from Myanmar - LINK (YouTube video).

• We have seen strong traction for producers looking to utilize the system as well as buyer interest in having such solutions. The use of digital credentials is the next phase for this to be mass adopted. The MVP will serve this need.

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

East Africa Workshop and Expert Interview Preparation

• Establish Regional Expert Working Group: bringing together key stakeholders that are essential for the success of this project. This includes a mix of producers, service providers, international importers and regulators. This forms the cohort for whom we conduct workshops with in person for Milestone 2.

• Prepare workshop and expert interview materials: Develop comprehensive materials and resources for on-ground workshops, ensuring that participants gain a deep understanding of blockchain technology, its benefits, and how it can address the identified challenges in the commodity markets.

• Conduct remote Expert Interview Sessions: Ahead of the on-ground workshops, we will conduct several interviews with experts from the sector. This is a crucial output as it informs us on the nuances of the region and what solutions are needed.

• Prepare summary of key findings into a report for Milestone 1

• Prepare for on-ground visit: including booking various dates with stakeholder and working groups to run workshops. This will include booking flights and various other costs associated to being on the ground running workshops.

>Design Verifiable Credentials & Oracle Module for Commodity Certifications

• Design ecosystem map: Develop a comprehensive map of ecosystem stakeholders, their role and how they interact with the credentials system. For example, who issues these credentials, what data is captured, who can see what and how.

• MVP design: design the MVP needs for the verifiable credentials module, focusing on the unique needs and requirements of small-holder tea producers in the targeted East African markets. We will leverage the Cambridge 5S Speciality Tea Categorisation System as the grading standard that acts as credential for producers. We will also leverage learnings from the pilot run earlier by the ITC for this system - but shaping it to work for digital credentials using blockchain technology.

• Design MVP oracle architecture: Work on designing the architecture for the oracle solution, considering the specific needs of authenticating products in the commodity markets. Collaborate with technical experts to ensure scalability and reliability.

>On-Ground East Africa Workshops

• Conduct on-ground workshops: Organize workshops in East African emerging markets, bringing together small-holder producers, stakeholders, and experts to understand the specific challenges and needs in the commodity sector. These sessions will leverage findings from Milestone 1 and the expert interviews to understand how to effectively deploy and pilot the commodity certification system.

• Testing & iteration of design with producers: Conduct on-the-ground testing of the new design with a selected group of producers to gather feedback and insights. Use this feedback to iterate and refine the module to ensure its effectiveness and user-friendliness.

• Report on key findings and outcome of workshops: write a short report on the key findings from the workshops delivered on the ground. This may include a summary of the key learnings from the testing and iteration phase, potential blockers and risks raised with integration that need to be resolved.

>Development of Verifiable Credentials Module

• Develop Documentation and Educational Materials: Develop user-friendly documentation and educational materials that explain the functioning of the verifiable credentials solution.

• Develop Digital Credentials and On-Chain Certifications Source Code: Develop the various modules that allow verified parties to issue credentials, store credentials on-chain and verify them.

>Implement Oracles for Verifiable Credentials Module

• Develop Smart Contracts: Develop smart contracts that will facilitate the interaction between the blockchain platform and the oracles.

• Develop Documentation and Educational Materials: Develop user-friendly documentation and educational materials that explain the functioning of the oracle solution. Conduct training sessions for stakeholders to ensure proper understanding and utilization.

>Deploy MVP pilot with Pioneers Producers from East Africa

• Code audits

• MVP Deployment Preparation: Prepare the groundwork for the pilot deployment, including establishing partnerships with key stakeholders, coordinating logistics, and creating a communication plan to inform participants and the wider community.

• MVP Pilot Launch: Deploy a pilot of the verifiable credentials and oracles module with a select group of Speciality Tea producers in the East African Market. The goal of the pilot will be to onboard producers, test the speciality tea, grade it and then issue a grade for that batch on-chain.

• Feedback and Iteration: Gather feedback from participants, producers, and other stakeholders involved in the pilot. Use this feedback to make necessary iterations, addressing any challenges or optimizing the system for broader implementation.

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

Below are the main individuals working on the proposal. On top of this core team, the zenGate Global team is supported by 10+ other experts across working with regulators, public policy, development institutions and finance. More information about the team’s past experience is listed above.

• Daniel Friedman (Proposal Delivery Lead)

• Sam Lambert (Development Project Lead). Sam’s role for the project is focussed around the project management of the development of . His ability to run workshops and manage stakeholders are essential skills to deliver on this project.

• Joyce Maina (East Africa Liaison and Subject Matter Expert for Speciality Tea). Joyce’s extensive experience working on the ground in Kenya during her tenure at Unilever’s tea department and work with International Trade Centre (ITC) in the region positions her incredibly well for the success of the project. Joyce will act as the liaison with the producers in the region as well as a subject matter expert around the grading system for speciality teas that she developed with the ITC.

• Darrell O'Donnell (Verifiable Credentials and Ecosystem Governance Lead). Darrell will be focussed primarily supporting the design of the verifiable credentials module as well as supporting the workshops / expert interview sessions.

• Luca D'Angelo: Co-lead developer of the Winter Protocol (zenGate dev team). Luca will help execute the development of the verifiable credentials and oracle module. Luca has extensive experience building smart contracts - including roles as the Founder / Lead Developer of GuapSwap, Founder of Lilium, Ergo Script Developer for ErgoPad (leading launchpad platform), Phoenix Finance, Blitz TCG and EXLE.

• Shishir Pai: Co-lead developer of the Winter Protocol (zenGate dev team). Shishir will help execute the development of the verifiable credentials and oracle module. Shishir has extensive experience building smart contracts - Founder of Lilium and ErgoSapiens, and development support for Phoenix Finance and ErgoNames (decentralized DNS platform).

Please provide a cost breakdown of the proposed work and resources.

<u>Milestone 1: </u><u>East Africa Workshop and Expert Interview Preparation </u><u>(</u><u>70,000</u><u> ADA)</u>

Anticipated time to finish Milestone: 6 weeks

Team: This workstream will be led by Sam Lambert (COO of zenGate Global), Joyce Maina (Founder of Cambridge Tea Consultancy) and 2 analysts. The preparation of the materials, coordination with various stakeholders will take approximately 6 weeks. The remote expert interview sessions are targeted to take 6 weeks to complete as well.

• Establish Regional Expert Working Group: No cost

• Prepare workshop and expert interview materials: 10,000 ADA

• Conduct remote Expert Interview Sessions: 5,000 ADA

• Prepare summary of key findings into a report for Milestone 1: 5,000 ADA

• Prepare for on-ground visit (incl. booking flights, workshop venues, tea garden visits in multiple regions, accommodation): 50,000 ADA (this is likely to to cost even more but the zenGate team will cover the extra costs).

<u>Milestone 2: </u><u>Design Verifiable Credentials & Oracle Module for Commodity Certifications </u><u>(</u><u>60,000</u><u> ADA)</u>

Anticipated time to finish Milestone: 8 weeks

This workstream will be led by Sam Lambert (COO of zenGate Global) and subject matter expertise for the ecosystem building and prototype design will be supported by Darrell O'Donnell (CEO of Continuum Loop). The design of the oracle architecture will be led by Daniel Friedman and supported by our development team.

• Design ecosystem map of the East African Speciality Tea sector: 10,000 ADA

• Prototype design of the verifiable credentials module: 25,000 ADA

• Design oracle architecture and how it integrates into the credentials module: 25,000 ADA

<u>Milestone 3: </u><u>On-Ground East Africa Workshops (30,000 </u><u>ADA</u><u>)</u>

Anticipated time to finish Milestone: 2 weeks

• Conduct on-ground workshops: 15,000 ADA

• Testing & iteration of design with producers: 10,000 ADA

• Report on key findings and outcome of workshops: 5,000 ADA

<u>Milestone 4: </u><u>Development of Verifiable Credentials Module (60,000 ADA)</u>

• Develop Documentation and Educational Materials: 5,000 ADA

• Develop Credentials Source Code: 55,000 ADA

<u>Milestone 5: </u><u>Implement Oracles for Verifiable Credentials Module (60,000 ADA)</u>

• Develop Smart Contracts: 55,000

• Develop Documentation and Educational Materials: 5,000

<u>Milestone 6: </u><u>Deploy pilot with Pioneers Producers (20,000 ADA)</u>

• Code Audits: 15,000 ADA

• Pilot MVP Deployment Preparation: 5,000 ADA

• Pilot MVP Launch: N/A

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

The Cardano Ecosystem has excelled in building innovative tools and applications for crypto-native users. We believe that the next evolution of the ecosystem requires greater accessibility and use-cases for non-crypto-native businesses. Our goal is to provide these solutions and work hand-in-hand with underserved businesses.

Delivering real-world-use-cases to those that need it the most brings enormous value for the ecosystem. This is something that this proposal addresses, and these businesses will have tangible benefits as a result of the Cardano ecosystem’s community, funding and tooling.