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 profits (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 Non-Fungible Tokens (NFTs).

The primary objective of this project is to amass an extensive portfolio of green and renewable energy resources. This portfolio will include solar power plants, bio-diesel refineries, and tree farms renowned for their high CO2 absorption capabilities, among others. Our aim is to offer practical and robust solutions to offset carbon emissions, thereby significantly reducing our collective carbon footprint.

Kwarxs has committed to establishing itself as the most significant utility project on the Cardano platform. Our strategy is designed to yield a sustainable, long-term passive income for all members of the Kwarxs community. We aim to achieve this through the continual development and refinement of our proprietary system and smart contracts.

Our goal is to enhance their usability for a growing user base, thereby driving the project's impact and reach. In the future, we envision the Kwarxs-DAO project to become entirely autonomous. It will be self-organizing via the DAO and contribute to ongoing decentralization efforts.

This vision underscores our commitment to forging new paths in green energy solutions, utilizing the power of blockchain technology, and supporting our community through reliable passive income opportunities. We believe these efforts will position Kwarxs at the forefront of sustainable innovation, driving forward both environmental responsibility and financial independence for our users.

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.

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.

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The following demos show the user-facing functionality of Kwarxs already deployed on testnet and accessible via the website at https://kwarxs.io:

• Minting of NFTs:

https://www.youtube.com/watch?v=aXcZ_okyGRQ- Profit distribution / claiming of rewards:

<https://www.youtube.com/watch?v=SSNeYSZbVX8>--------------------------------------

Kwarxs NFTs are grouped in 4 categories representing different rarities and APY%. All NFTs come with a nice piece of art, 100% handmade and unique.

The first collection, "Sun Gowds", is based on the sun god Helios in relation to our solar farms. This is a sample of the art attached to the NFTs:

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

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 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.

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.

We are optimistic about deploying Kwarxs on the Cardano mainnet within four months of securing the necessary funding. Significant progress has already been made towards this goal, with a prototype live on testnet and a targeted mainnet launch currently slated for Q2 2024.

Upon the successful launch of the project, our platform will be primed for investors to mint their 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.

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?

The Kwarxs team has been in the business of solar power for almost two decades, executing over 5.5GW (a total of 0,43% of all installed Solar Power Worldwide) of solar projects globally, encompassing various types such as rooftop installations, open land systems, tracked systems, carports, landfill projects, and even floating solar installations on water. Recently, the first solar project under the Kwarxs project was constructed and is already operating in Ribnitz, Germany, with the following specifications:

KWARXS Solar Power Plant (Germany, own inventory)

• Type: rooftop system
• Size: 76.4 KWp
• Grid operator: E-ON Edis
• Production per year: ca. 78,000 KW/h
• Remuneration: ca. €0.385 per KW/h
• Running costs: ca. €500.00 per year insurance (Allianz)
• Roof lease: Already paid until 2031
• Installed components:
• Modules: First Solar FA 275
• Inverter: Huawei KTL 33, KTL 30, KTL 12
• Rack: Wuerth
• Cable: Helu Solar Cable
• Annual yield: €30,000 per year

This rooftop Solar Power Plant is located in East-Germany (Mecklenburg-Vorpommern) close to Rostock and was built 2009. Since then the plant already produced 1,1 million kilowatt hours of electricity, bringing a net profit €420,000 over 14 years.

On the software side of things, the Kwarxs team has a strategic partnership with MLabs, with whom we have been closely collaborating for the past one and a half year. Thanks to this productive alliance, we have built the User Interface and we have already deployed our project on the testnet.

This is the approximate delivery plan for the project:

The funds obtained in this Catalyst round will be crucial in propelling our project into its final phase. These resources will enable us to transition the project seamlessly from the testnet phase to mainnet, as well as adding some further functionality. This signifies a key milestone in our journey, bringing us a step closer to realising our vision for a greener, more sustainable future.

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

Milestone 1: Milestone: Refactor the transaction builder to simplify design and move away from unmaintained libraries

Description: The current implementation of the code to build transactions has three components: the backend transaction builder, a minting signature bot and the frontend adapter for partial transactions. These components make use of the deprecated library Bot Plutus Interface. The main purpose of this milestone is to simplify the design by unifying the code for building transactions and also moving away from unmaintained libraries. Our first option is to use Atlas, as we believe it will provide the easiest migration path given the state of our current implementation.

Outputs:

• Refactored code for building transactions that uses Atlas (or an alternative maintained library) and has a simplified architecture with less components.

Acceptance criteria:

• The new transaction builder is capable of submitting all the relevant kinds of transactions for Kwarxs to the Cardano testnet (preprod or preview).

Milestone 2: Milestone: Update the transaction builder to support the Conway era.

Description: Following the refactor in Milestone 1, the code will be in a good position to support future versions of Cardano, including the upcoming Conway era. In this milestone, the transaction builder will be adapted to be compatible with the Sancho network, which is the beacon for the Conway era. Once transactions submitted to the Sancho network are accepted, the code will be prepared to run smoothly even post Chang hard-fork.

Outputs:

• Transaction builder that supports transactions in the Conway era.

Acceptance criteria:

• Transactions submitted to the Sancho Network, the testnet supporting the Conway era ledger, are successful.

Milestone 3: Milestone: Update and enhance frontend.

Description: The current implementation of the frontend will be updated to use the new API developed in Milestones 1 and 2, as well as enhanced with new functionality such as support for bulk claiming of rewards and increased display of information related to the user NFTs and Kwarxs operations.

Outputs:

• Integration with the updated library for building transactions.
• Enhanced functional frontend from where transactions can be submitted using a variety of light wallets.
• Support for bulk claiming of rewards.
• Visualisation of claimable rewards by users.
• Information about Kwarxs operations in real life, which provide the basis for the utility associated with the NFTs.

Acceptance criteria:

• Transactions interacting with the Kwarxs on-chain scripts via the frontend can be submitted to the Sancho Network using at least 2 different light wallets.
• A transaction claiming rewards in bulk (i.e. rewards from more than 1 NFT owned by the same address) can be submitted to the Sancho Network.
• Users that have their wallet connected can see the aggregated amount of claimable rewards by all their Kwarxs NFTs.
• The Kwarxs website displays information about the solar farms in operation.

Milestone 4: Milestone: Blockpass integration and NFT data pre-processing.

Description: This milestone will focus on the auxiliary services that need to be integrated with Kwarxs in order to operate the application. One of these services to be integrated is the KYC provider Blockpass. The integration with Blockpass will allow Kwarxs to verify the identity of the NFT buyers. Also, the NFT metadata such as associated images and videos will be pre-processed and hosted in IPFS.

Outputs:

• Robust integration with Blockpass.
• Pre-processing of NFT images and videos, propagating IPFS links to the database to be used by the minting bot.

Acceptance criteria:

• Users interacting with the frontend can submit transactions to interact with the Kwarxs on-chain scripts only when using addresses verified by Blockpass.
• Users that haven’t passed KYC with Blockpass interacting with the front-end are redirected to verify their identity with Blockpass.
• The database is populated with all the necessary information and metadata related to the initial mintable collections, consisting of more than 10,000 NFTs.

Final Milestone: Milestone: Deploy to mainnet.

Description: The final milestone consists of the final preparations to our infrastructure towards launching Kwarxs on the Cardano mainnet. Upon successful completion of this milestone, Kwarxs will be live on mainnet.

Outputs:

• A server with the necessary infrastructure to interact with the Cardano mainnet is set up.
• The website interacting with the on-chain scripts on mainnet is deployed.

Acceptance criteria:

• Transactions interacting with the Kwarxs on-chain scripts can be submitted to the Cardano mainnet via the front end in https://kwarxs.io/.

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

Sandro - Founder of Kwarxs + CEO:

1. Construction Management Expertise: With many years of active work as a construction manager, this team member brings invaluable skills to our project. Their experience in overseeing construction projects, managing resources, and ensuring quality control enhances our operational capabilities.
2. German Industrial Master Title: Holding the esteemed German title of Industrial Master, he demonstrates a high level of proficiency in industrial operations and management. This qualification reflects Sandro's expertise in leading and optimizing industrial processes.
3. Passion for Cardano and NFTs: Sandro also possesses a deep passion for the Cardano ecosystem (since early 2021) and is particularly captivated by NFTs on the Cardano blockchain. His profound understanding of Cardano and expertise in NFTs contributes to our innovative approach in leveraging blockchain technology for renewable energy investments.
4. Renewable Energy and eMobility Pioneer: Moreover, he stands out as a trailblazer in the eMobility space, being the owner of an eBike store in Spain. Sandro's passion for promoting sustainable transportation solutions aligns perfectly with our project's goals.

Role: Organize and monitor all activities in the area Smart Contract, NFT, web design, development of new tools, communication social media and support of the community, support of the website, back-office, communication interface to MLabs and other development, security and design teams.

Rene - Head of Construction &amp; Solar Entrepreneur:

1. Years of Experience in the Solar Industry: With a remarkable track record in the solar business since 2004, Rene and his team possess extensive industry knowledge and insights. They have successfully executed over 5.5GW of solar projects globally, encompassing various types such as rooftop installations, open land systems, tracked systems, carports, landfill projects, and even floating solar installations on water. Their operational reach spans across diverse countries including Canada, England, Italy, Spain, Bulgaria, Hungary, Greece, Taiwan, Japan, Australia, New Zealand, Vietnam and Saudi Arabia.
2. Number of Employees: Heading a robust team, they have fostered a workforce of more than 250 dedicated professionals spread worldwide. This skilled and motivated team contributes to the success and efficiency of our operations.
3. Total Installed Capacity: Their expertise has contributed to an impressive total installed capacity of 5,500MW. To put this into perspective, this capacity can power approximately 1,200,000 homes, highlighting the significant impact they have made in providing clean and sustainable energy solutions.

Role: planning new solar systems, implementation of solar power plants, communication with

financial institutions and all activities related to the construction of solar.

With their extensive industry experience, a dedicated team, and a proven track record of successful solar installations, this team member is a valuable asset to our project.

Their expertise contributes to our mission of revolutionizing renewable energy investments and paving the way for a greener future.

Together, Sandro &amp; Rene combine years of experience in the solar industry, construction management skills, and a profound passion for the Cardano ecosystem. Their collective expertise strengthens our project's foundation, propelling us towards success in revolutionizing renewable energy investments and embracing the potential of NFTs on Cardano.

MLabs - Haskell, Smart Contract Dev Team:

As a valuable resource and technical support for the Kwarxs project, we proudly collaborate with MLabs, a leading Cardano development company. MLabs brings extensive expertise and innovation to the table, playing a pivotal role in our project's success.

MLabs' leadership in Cardano development is evident through their exceptional track record in delivering cutting-edge solutions. Their skilled team of developers, engineers, frontend designers and technologists possess a deep understanding of the Cardano ecosystem, enabling them to provide invaluable technical guidance and support to the Kwarxs project.

With MLabs' expertise, we leverage their technical prowess and comprehensive knowledge of Cardano's capabilities. Their contribution ensures the seamless integration of our project with the Cardano blockchain, optimizing performance and security.

MLabs' commitment to excellence aligns perfectly with our vision for the Kwarxs project.

Together, we forge ahead, utilizing their technical leadership and expertise to drive the project's success and revolutionize the renewable energy investment landscape.

Role: All relevant and necessary technical work on the Cardano blockchain, implementation and programming of new functions, writing of smart contracts, NFT minting, maintenance of the website, security of the network and all connected systems, front end design and backend coding is subcontracted to MLabs.

Please provide a cost breakdown of the proposed work and resources

Milestone 1 - Refactor the transaction builder to simplify design and move away from unmaintained libraries: ₳74,550

• Team: Blockchain/backend development team.
• Estimated number of hours: 213 hours

Milestone 2 - Update the transaction builder to support the Conway era: ₳79,550

• Team: Blockchain/backend development team.
• Estimated number of hours: 227 hours

Milestone 3 - Update and enhance frontend: ₳70,000

• Team: Frontend development team.
• Estimated number of hours: 200 hours

Milestone 4 - Blockpass integration and NFT data pre-processing: ₳29,050

• Team: Blockchain/backend development team.
• Estimated number of hours: 83 hours.

Final milestone - Deploy to mainnet: ₳46,550

• Team: Devops team.
• Estimated number of hours: 133 hours

Note: promotion, community engagement and other work will be done by the founders as much as possible. No additional funding is requested for these activities.

Subtotal:

• 656 hours of development @ 110 USD/hour
• 200 hours of front-end development @ 90 USD/hour

=&gt; 856 hours of development @ blended rate of 105 USD/hour = 89,880 USD

Total: 89,880 USD @ $0.30* USD / ADA = 299,600 ADA

*In the interest of full transparency, please note we have applied a conservative USD/ADA exchange rate in pricing this proposal (6-months low from October 2023 to April 2024). This is to ensure our operations remain stable regardless of market conditions. Although we firmly believe the future of Cardano is bright, we recognize the price of ADA and all cryptocurrencies is inherently volatile. Our financial obligations are denominated in fiat. Most importantly, this includes the salary of the engineers whose hard work makes projects like this possible.

KWARXS in Partnership with:

No dependencies.

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

The value proposition of the project for the Cardano ecosystem primarily hinges on its potential to increase the network's utility and attract more participants to the ecosystem.

Here's how:

1. Enhanced Network Utility: By leveraging the Cardano network for renewable energy investments, the project adds another layer of functionality to the Cardano blockchain. It positions the network as a facilitator of environmentally conscious investments, further differentiating it from other blockchain ecosystems.
2. Increased Participation: By enabling fractionalized ownership of renewable energy assets, the project opens doors for a wider range of investors. This broadens the network's user base and potentially increases the demand for ADA, Cardano's native token.
3. Alignment with Global Trends: The project's focus on renewable energy aligns with global efforts to transition to a low-carbon economy, positioning Cardano as a leader in sustainable blockchain solutions.

In essence, while the project involves costs, it's expected to generate long-term value for the Cardano ecosystem by increasing its utility, fostering user growth, and aligning with global sustainability trends.