Please describe your proposed solution.
Kwarxs bridges blockchain and real-life projects by providing a crowdfunding vehicle that enables fractional ownership of solar energy plants (the same technology could be extended to other projects), to later distribute part of the annual profits among investors. Both the investment and the profit sharing is done through transactions on the Cardano blockchain using ADA as a currency, and the proof of investment used to claim the investor's share of the profit is done via Cardano native NFTs.
The built protocol allows to do the following actions:
1 - Investment and NFT minting
In order to buy an NFT, a user first has to clear KYC with Blockpass. Once this is done, by clicking the "Buy" button in the website the following sequence is triggered:
- Using the connected address, a KYC status request is sent to Blockpass.
- If a successful response is received from Blockpass, a transaction minting the NFT and sending it to the connected address, and paying to the operator's wallet the price in ADA displayed on the website is built and sent to the user for signature. The signed transaction is then submitted to the blockchain and the NFT is minted.
KWARXS NFT
2 - Profit sharing
After converting the profit generated by the solar plant to ADA (or any other Cardano native token), the administrator deposits it into the profit sharing validator, an escrow script that locks them under the profit distribution rules.
A separate deposit is required for each collection of NFTs supported (at launch, there would be four collections supported for different sizes of investment), and the information about how much value (e.g how many Lovelaces) can be withdrawn by each NFT holder is attached as part of the deposit transaction.
3 - Profit distribution
Owners of the NFTs can use them to claim their share of the profit previously deposited by the administrator and locked in the profit sharing validator. There is no need to stake the NFTs to do so. To prevent fraud, every time profit is claimed, the NFT is atomically burnt and re-minted, updating a counter included as part of the token name.
How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?
Kwarxs is committed to pioneering the concept of fractionalized ownership and governance within the sustainable energy sector. This revolutionary approach will empower investors to share in the profits generated by solar power plants, thereby promoting active participation in the green revolution. It also fosters an environment for the investment community to directly contribute towards the establishment of new solar power facilities.
Our strategic objectives align with the broader aim to augment the proportion of energy derived from renewable sources. This initiative is not only central to Kwarxs' operational framework but is also crucial to the attainment of international climate goals. Such objectives are highlighted in the 2030 agenda and are aimed at a significant reduction in the world's carbon footprint.
With the long-term vision of reaching zero-emissions by the year 2050, Kwarxs is committed to playing an integral role in catalyzing the transition to cleaner, sustainable energy solutions. Through our innovative approach, we aim to make a tangible impact in the fight against climate change, while providing our investors with profitable, socially responsible investment opportunities.
How do you intend to measure the success of your project?
The primary measure of this project's success is gauged by the installed capacity of solar energy, expressed in Megawatts, made possible by investments channeled through the Cardano blockchain.
A secondary, yet equally significant, success indicator is the quantity of individual investors, particularly from the smaller investor demographic, who partake in this investment opportunity. The emphasis here is on the ability of these investors to acquire fractional ownership of the solar farms, thereby democratizing access to renewable energy investments. These metrics, combined, serve to reflect our commitment to promoting sustainable energy and broad-based investor participation.
Please describe your plans to share the outputs and results of your project?
We are optimistic about deploying Kwarxs on the Cardano mainnet within three months of securing the necessary funding. Significant progress has already been made towards this goal, with a targeted launch currently slated for the fourth quarter of this year.
Upon the successful launch of the project, our platform will be primed for investors to mint their Non-Fungible Tokens (NFTs). These NFTs will symbolize their entitlement to a fraction of the profits yielded by the power plants.
It's noteworthy that our operations are already underway with solar farms in Germany. Therefore, we can assure investors of profits, even in the first year of operation, calculated from the conclusion of the initial investment round. This assurance underlines our commitment to providing a secure and fruitful investment platform to our investors right from inception.
Progress, demos and promotional videos can be found in our YouTube channel https://www.youtube.com/@kwarxs.