Please describe your proposed solution

<u>Problem</u>:

The apparel industry, faces challenges in authenticating, tracking, and enhancing the value of physical merchandise. Traditional methods lack transparency in supply chain management, struggle with verifying product authenticity, and offer limited avenues for customer engagement beyond the initial purchase.

Specifically:

1. Supply Chain Opacity: There's a lack of reliable, end-to-end traceability for apparel items from production to delivery, leading to potential inefficiencies and trust issues.
2. Authenticity Concerns: Verifying the legitimacy and ownership of branded merchandise is often difficult, potentially impacting brand value and customer trust.
3. Limited Customer Engagement: Current systems offer few opportunities to maintain ongoing relationships with customers post-purchase or to add value to physical products through digital means.
4. Integration Challenges: There's a gap between Web2 manufacturing processes and Web3 technologies, hindering the adoption of blockchain solutions in traditional apparel production and distribution.
5. Scalability Issues: Existing blockchain solutions often struggle to efficiently handle the high volume and rapid turnover typical in the apparel industry, particularly in POD scenarios.

Problem Perception: There's a growing demand for personalized merchandise featuring children's likenesses, but concerns exist around the authenticity and secure sharing of such products. Traditional methods lack a reliable way to verify the origin and authenticity of these items, especially when shared with extended family members.

Unique Approach: Our solution combines Little Legends' AI-generated imagery with Merchadise's production capabilities and Cardano's UVerify technology to create a secure, verifiable system for producing and sharing personalized children's merchandise.

<u>Step-by-Step Solution:</u>

a. AI-Generated Image Creation:

• Little Legends platform allows parents/guardians to upload photos of their child.
• AI generates a variety of photo-realistic images of the child in different scenarios (as shown in the example - astronaut, superhero, sports player, etc.).

b. Merchadise Integration:

• Selected AI-generated images are integrated into Merchadise's production system.
• Parents can choose which images to use for various merchandise items (e.g., mugs, t-shirts, posters).

<https://youtu.be/jFKuehabmdw>c. UVerify Implementation:

• Each merchandise item is assigned a unique identifier on the Cardano blockchain using UVerify.
• This creates a verifiable credential linked to the product's details and the AI-generated image used.

d. QR Code Generation:

• A unique QR code is generated for each product, linking to its blockchain credential.
• This QR code is automatically added to the merchandise during production.

e. Secure Family Sharing:

• Parents can share access to the merchandise store with specific family members.
• Family members can purchase items featuring the AI-generated images of the child.

f. Authentication Process:

• Recipients can scan the QR code on the received merchandise.
• This opens a user-friendly interface showing the product's authenticity and origin.

g. Privacy and Control:

• Parents maintain control over who can access and purchase the merchandise.
• The blockchain ensures that only authorized productions are verified.

Project Engagement: This project will engage:

• Parents seeking unique, personalized merchandise of their children
• Extended family members (grandparents, aunts, uncles) who want to purchase authentic keepsakes
• Merchadise as the production partner
• The Cardano community, showcasing UVerify's real-world application

Impact Demonstration:

• Track the number of AI-generated images created and turned into merchandise
• Measure the rate of QR code scans for authentication
• Monitor family member engagement and purchase rates
• Analyze user feedback on the authenticity and quality of the products

Uniqueness and Importance to Cardano: This solution is unique in its combination of cutting-edge AI image generation, personalized merchandise production, and blockchain-based authentication. It demonstrates a practical use case for Cardano's UVerify in a niche but emotionally significant market.

The project benefits:

• Parents, by providing a secure way to create and share personalized merchandise of their children
• Family members, by ensuring the authenticity of the keepsakes they purchase
• Merchadise, by offering a unique, high-value product line
• The Cardano ecosystem, by showcasing UVerify's capability in a consumer-friendly application

This is important to Cardano as it:

• Demonstrates UVerify's potential in ensuring authenticity in digital-to-physical products
• Shows how blockchain can add value in personal, family-oriented applications
• Provides a scalable model for integrating blockchain verification in e-commerce and personalized product markets

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

Our project, integrating Little Legends AI-generated imagery with Merchadise production and Cardano's UVerify technology, will have a significant positive impact on the Cardano ecosystem:

1. Driving Adoption and Real-World Use: This project addresses a tangible, emotionally resonant use case - creating and sharing authenticated, personalized merchandise of children. By solving a real-world problem, we're driving adoption of Cardano blockchain technology among everyday users who may not be familiar with cryptocurrency.
2. Proving Enterprise Viability: By partnering with Merchadise, a established print-on-demand company, we're demonstrating Cardano's capability to integrate with existing business models. This proves the blockchain's viability for enterprise-level applications, potentially attracting more businesses to the Cardano ecosystem.
3. Increasing Network Activity and Value: As more merchandise is created and authenticated using UVerify, network activity on Cardano will increase. This heightened activity can positively impact the value of ADA, benefiting the entire Cardano community.
4. Contributing to the Cardano Treasury: With 20% of transaction fees going to the Cardano treasury, our project will directly contribute to the ecosystem's growth and sustainability. As sales increase, so will the contributions to the treasury, funding future developments and improvements.
5. Protecting Intellectual Property: By leveraging blockchain technology for authentication, we're creating a model for protecting digital and physical IP within the Cardano ecosystem. This could attract creators and businesses looking for secure ways to manage and monetize their intellectual property.

<u>Measuring Impact:</u>

We will measure the impact of our project through both quantitative and qualitative metrics:

Quantitative Metrics:

• Number of UVerify transactions related to merchandise authentication
• Volume of ADA used in transactions
• Contributions to the Cardano treasury from our project's transactions
• Number of new wallets created for merchandise purchases
• Engagement rates (QR code scans, website visits)

Qualitative Metrics:

• User testimonials and satisfaction surveys
• Feedback from Merchadise on business impact
• Case studies on IP protection effectiveness
• Media coverage and industry recognition

<u>Sharing Outputs and Opportunities:</u>

We are committed to transparency and knowledge sharing within the Cardano community:

1. Regular Updates: We will provide monthly updates on our progress, including key metrics and milestones, through Cardano community channels (forums, social media, etc.).
2. Open Source Contributions: Where possible, we will open-source parts of our implementation, allowing other projects to build upon our work.
3. Educational Content: We'll create educational content (articles, videos, webinars) explaining how we integrated UVerify with a real-world business process, helping other entrepreneurs understand the potential of Cardano for their projects.
4. Conference Presentations: We'll present our findings and case studies at relevant blockchain and e-commerce conferences, showcasing Cardano's capabilities to a wider audience.
5. Collaboration Opportunities: We'll actively seek partnerships within the Cardano ecosystem, offering opportunities for other projects to integrate with or build upon our authentication system.

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?

Merchadise has has 40+ years of combined experience in the Branded Merch &amp; Fashion industry. With leaders who deeply understand the industry, we provide the best bespoke solutions for brands.

Alex Phelan has been a Print-On-Demand evangelist since early 2013 when he was on the founding team of Teespring, a platform that pioneered social commerce with custom products. When he realized the screen-printing technology could not support Teespring's growth trajectory he in-sourced printing and fulfillment by opening the largest Direct-To-Garment printing and fulfillment operation in the United States at its time and leading the implementation of Teespring's proprietary order fulfillment workflow systems.

Matias Rivero has over 20 years of experience, specialized in IT &amp; Innovation, Art &amp; Graphic Design, Business Development, Apparel and Merchandising Design &amp; Manufacturing. NFT enthusiast. TEDx Speaker. Founder of Pixel’s Hive. Co-Founder &amp; Current Chief Product Officer at Merchadise Inc. Cook for fun in Cocina en Altura. Executive MBA at IAE Business School.

Fabian Bormann is an expert in neuroinformatics, bioinformatics, and blockchain technology. He started his career at the Fraunhofer Institute of Marine Biotechnology and later worked as an AI Engineer and Fullstack Developer at Volkswagen.

In 2022, Fabian joined the Cardano Foundation. Since 2020, he has been active in the Ethereum ecosystem and moved on to the Cardano ecosystem in 2021. He created services like WalkinWallet and Meerkat, which led to the development of CIP-45, also known as Cardano Connect.

Fabian is passionate about using blockchain to create secure and scalable solutions.

• <u>Important note about my person:</u> Please note that notwithstanding any association with the Cardano Foundation, this submission is made solely in my personal capacity and on my own behalf and account

Riz Pabani is a strategist with expertise in technology, project management, and strategic planning. With a rich background spanning financial services, blockchain, enterprise, and government sectors, he excels in driving operational excellence and integrating innovative technologies. His deep passion for the revolutionary impact of blockchain and artificial intelligence underscores his commitment to redefining business practices.

Sacha Windisch is an accomplished entrepreneur with over two decades of experience spanning management consulting, technology, Finance and blockchain. His career reflects a blend of strategic innovation and operational excellence. His expertise in leveraging technology for business transformation makes him an ideal figure to lead our initiatives in the Americas.

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

Milestone 1: Outputs:

• Project plan document
• Sprint backlog for integration and proof of concept

Acceptance Criteria:

• Project plan approved by key stakeholders
• Sprint backlog prioritized and estimated

Evidence of milestone completion:

• Signed project plan document
• Sprint backlog in project management tool

Milestone 2: Outputs:

• Smart contract system on Cardano blockchain
• QR code tag generation system
• Basic user interface for consumer access
• QR code tag printing specification into print-on-demand manufacturing process / supply chain integration

Acceptance Criteria:

• Smart contracts successfully deployed on testnet
• QR system generates unique identifiers
• User interface accessible via web browser

Evidence of milestone completion:

• GitHub repository with smart contract code
• Demo of QR generation system
• Screenshot of user interface

Milestone 3: Outputs:

• Test report document
• Refined system based on test results
• Little Legends item (mug or t-shirt) created with QR code

Acceptance Criteria:

• All critical bugs resolved
• System performance meets agreed-upon metrics
• Little legends item QR code can be scanned and opens into a UI to show authenticity with verified certificate

Evidence of milestone completion:

• Signed test report document
• Updated GitHub repository with refined code
• Video scanning QR code

Milestone 4: Outputs:

• QR code authentication implemented for selected Little Legends products
• Branded authenticity platform for Little Legends
• Marketing materials
• QR code authentication demo setup
• Viva Tech conference attendance with booth to showcase product

Acceptance Criteria:

• At least 3 Little Legends products successfully integrated
• Little Legends team able to manage their digital engagement platform
• Marketing materials approved by team
• Demo successfully showcases key features

Evidence of milestone completion:

• Photos of Little Legends products with QR integration
• Access link to Little Legends' digital engagement platform
• Social media posts (X) promoting Little Legends
• Photos/video of demo

Final Milestone: Outputs

• Final project report and presentation video summarizing achievements and lessons learned.

Acceptance Criteria

• Comprehensive final report detailing all project activities, outcomes, and future recommendations.
• A presentation video that effectively communicates the project's impact and future potential.

Evidence of Milestone Completion

• Submission of the final report to stakeholders.
• Presentation video published on social media channels

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

Riz Pabani - https://www.linkedin.com/in/rizpabani/

Product Manager - responsible for all aspects of product and project management

Alex Phelan - https://www.linkedin.com/in/alex-phelan-b1968840/

CEO of Merchadise - responsible for the overall vision and exeuction

Fabian Borman - https://www.linkedin.com/in/fabian-bormann-748642130/

Technical lead for UVerify - responsible for the integration of UVerify into Merchadise's manufacturing process

• <u>Important note about my person:</u> Please note that notwithstanding any association with the Cardano Foundation, this submission is made solely in my personal capacity and on my own behalf and account

Sacha Windisch - https://www.linkedin.com/in/sachawindisch/

Commercial Strategy - responsible for all aspects of the commercialisation of the product

Matias Rivero - https://www.linkedin.com/in/matiasrivero/

Merchadise Product Office - responsible for all aspects of the manufacturing and print-on-demand aspects of the implementation

Merchadise will also provide support for building the Web2 interfaces and enhancing their existing software to embed UVerify's verification components - we expect this will include some time from one UX designer and support from the Web2 development team

Please provide a cost breakdown of the proposed work and resources

Milestone 1: Project Planning (50,000 ADA)

• Product Owner: 30% (15,000 ADA)
• Product Manager: 40% (20,000 ADA)
• Web2 Developers: 10% (5,000 ADA)
• Web3 Developer: 10% (5,000 ADA)
• Marketing Person: 10% (5,000 ADA)

Milestone 2: UVerify Integration &amp; Manufacturing Upgrade (175,000 ADA)

• Product Owner: 10% (17,500 ADA)
• Product Manager: 20% (35,000 ADA)
• Web2 Developers: 35% (61,250 ADA)
• Web3 Developer: 30% (52,500 ADA)
• Marketing Person: 5% (8,750 ADA)

Milestone 3: Testing (75,000 ADA)

• Product Owner: 10% (7,500 ADA)
• Product Manager: 25% (18,750 ADA)
• Web2 Developers: 30% (22,500 ADA)
• Web3 Developer: 30% (22,500 ADA)
• Marketing Person: 5% (3,750 ADA)

Milestone 4: Implementation, Launch, Marketing, Conference (150,000 ADA)

• Product Owner: 20% (30,000 ADA)
• Product Manager: 20% (30,000 ADA)
• Web2 Developers: 15% (22,500 ADA)
• Web3 Developer: 15% (22,500 ADA)
• Marketing Person: 30% (45,000 ADA)

Milestone 5: Close-out Video (50,000 ADA)

• Product Owner: 20% (10,000 ADA)
• Product Manager: 20% (10,000 ADA)
• Web2 Developers: 5% (2,500 ADA)
• Web3 Developer: 5% (2,500 ADA)
• Marketing Person: 50% (25,000 ADA)

Total budget: 500,000 ADA

1. Milestone 1 (Project Planning): 10% = 50,000 ADA
2. Milestone 2 (UVerify Integration &amp; Manufacturing Upgrade): 35% = 175,000 ADA
3. Milestone 3 (Testing): 15% = 75,000 ADA
4. Milestone 4 (Implementation, Launch, Marketing, Conference): 30% = 150,000 ADA
5. Milestone 5 (Close-out Video): 10% = 50,000 ADA

No dependencies

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

The total budget of 500,000 ADA (equivalent to approximately $150,000 - $200,000 USD, depending on ADA's current value) is actually quite reasonable for a project of this scope and duration.

Let's break it down:

• Product Owner and Product Manager: Combined allocation of 193,750 ADA (~$58,000 - $77,000 USD)
• This is in line with average annual salaries for these roles in many countries, considering this is likely a 6-12 month project.
• Web2 and Web3 Developers: Combined allocation of 218,750 ADA (~$65,000 - $87,000 USD)
• According to Stack Overflow's 2023 Developer Survey, the median salary for developers in the US is around $150,000 per year. Our allocation is significantly lower, indicating good value.
• Marketing Person: 87,500 ADA (~$26,000 - $35,000 USD)
• This is reasonable for a part-time or contract marketing professional for the duration of the project.

Freelance rates for similar roles often range from $50 to $200 per hour, depending on expertise and location. Our budget allocates approximately:

• $75 - $100 per hour for senior roles (Product Owner, Product Manager)
• $50 - $75 per hour for developers
• $50 - $60 per hour for marketing

These rates are competitive and often below market rates for specialised blockchain projects, representing good value for money.