Please describe your proposed solution

Savings and Lending Groups, Village Banks or community banking networks are all versions of very simple and highly impactful systems used by poor and unbanked communities all over the world to access basic financial services. According to CARE International, there is a 9.35X return in the first year for every $1 saved by participants through lending, borrowing and compounding over an 8-12 month cycle.

As these groups mature, they stagnate because of internal resource loss as members go from ‘unbankable’ to ‘bankable.’ Local resources contributed by the now bankable members are often removed from local communities and put into tradfi banks, reducing the local total pool of resources.

At the base level Save Network aims to work with these groups to provide tailored financial services that allow for group reputation, individual reputation and resource pooling growth. Before this can happen and these financial services showcased/co-developed, communities must have a more robust form of identity and reputation.

Identity is key to accessing further financial services through and with these local community savings and lending groups. Currently, these groups work on a local trust model that creates a small members based organization of people who know each other and are from the same area. It is our opinion that if we can externally exhibit this trust, we can showcase real world success and participant commitment to being responsible savers and borrowers.

Through this grant, Save Network will work within personal and professional networks to co-develop a robust digital identity framework that is based on these existing, local, community built, and highly impactful systems used today. This will be co-created from a well-rounded group of savers, advisors, regulators, financial service providers, non-governmental organizations, digital service providers and anyone else who maybe a stakeholder. This DID Framework, once developed, ratified and used by stakeholders and communities, will start the process of moving people from ‘unbanked’ to ‘ownbanked.’

Without these future services, these communities will continue to operate as they do now with limited growth and resource extraction from tradfi, or we can come together to enhance success that is limited by mainstream financial systems most of the world uses. Blockchain and crypto currencies provide a transformational opportunity to drive real change, increase financial development and build it from a self-governing, self-driven and self-resourced ethos.

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

The overarching theme and goal of the proposal is to co-develop with actors who currently use, inform, or could enhance community based savings and lending structures to create a common identity framework. A root of trust that all these actors will use at their base level when working with, participating in, providing financial services between or with savings and lending communities. This is a Root of Trust Identity that allows for existing, successful, realfi, structures through savings and lending communities and to be a base for onboarding over 20 million people to Cardano.

Once in use, this base root of trust identity and corresponding data around savings, lending, borrowing and repayments within groups, can be used for further financing in web3 and other more traditional sources.

Maybe these individuals or groups need a building loan, Empowa!

Maybe they are in need of land tenure/title, CommonLands!

Do they need access to sustainable working capital and trade financing for their specialty products? Zengate and Palmyra!

Does the community need better internet access that could also generate income? World Mobile and MAV100

Do they need a form of identity to access all these services above? YES and thats what we aim to bring together!

This Root of Trust will be impactful because it will allow for better understanding by existing Savings and Lending Community Stakeholders of Cardano as well as bring millions of users across Africa and the world access to the RealFi systems Cardano has! It will also bring a new cohort of users to Cardano that are in line with the aims and goals of the above projects.

Quantitatively: We will first measure impact by the number of stakeholders that agree on a framework for identity around existing savings and lending groups metrics, and drive backward in the process to see what engagement level we targeted, engaged and were able to maintain at each stage in the process. We will also track the number of existing and local web3 users that will be engaged to help in the education process the same way as the number of stakeholders of savings groups.

Qualitatively: Through the process of engaging with the different target groups and users, we will always allow for anonymous feedback, as well as regular feedback surveys with contributors to the Identity Development Process.

To share our progress and results, we will hold regular community updates over the course of the project. These will be used to help frame where we are in our process and showcase some direct impacts local savings and lending communities have on the 'unbanked.' These may be in the form of videos, interviews, photos, writing or any other form of media.

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?

As a consortium, we hold all the necessary pieces to this puzzle of savings and lending identities. From direct on the ground experience with groups, to building the frameworks that have created more formal structures for groups to operate. We have entrepreneurs, a doctor, technologists, community development professionals and finance experts. Many of us have participated in the Cardano Community for years and and some are just learning about web3 through participation in Save Network. What we all have is a passion and want to help others by creating systems for self realization. We want to see others succeed and have exemplified that in our chosen life paths. By collaborating with the selfdriven Foundation we aim to leverage selfdriven Education Frameworks and Community building for our co-development and selfdrivenOS for the technological layer and base solution to onboard communities into Cardano.

CONTEXT

Collaborative Onboarding Plans (COP) will create ways for all stakeholders to have representation to inform the framework through interactive learning. These plans will guide individual and organizational understanding of blockchain, crypto and Cardano in a way that they learn through doing. They will also educate and discuss the goals of Save Network and why digital identity on web3 is important by creating their own digital identity. From there each target audience will be able have a hands on understanding of how current systems work., Open and targeted discussions and activities will work towards a common framework of identity for varying implementations of Savings and Lending Communities.

For engagement with local communities and to ensure context and transparency in understanding, translators will be used for language, but also for cultural context. Engaging and learning through local culture and understanding is a great way for the web3 community in Zambia to become engaged in the Cardano Ecosystem and a great way to ensure people are onboarded in ways that are applicable to lives.

Potential Organizations for Co-Development

Catholic Relief Services

Self Help Africa

Save Net - Zambia

Impact Capital Africa

Kiva

Financial Sector Deepening Zambia

Good Nature Agro

One Acre Fund

Vitalite Zambia and Malawi

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

Milestone 1: Collaborative Onboarding Plans - COPs

A. Develop 'Collaborative Onboarding Plans' for each of the 3 target groups

• Partner Organizations
• Savings and Lending Communities
• Financial Service Providers

B. Report Completion of 3 COPs

C. Sending of COPs to Catalyst Teams for feedback and recommendations.

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Milestone 2: A. Participation Commitment through introduction Meetings.

B. Letters of commitment to participate in the COP with other organizations or individuals within the target group.

C. Signed Letter of Intended Participation in Target Group COP.

Milestone 3: A. Launch of Implementation COPs with the 3 Target Groups

B. Schedule of Events for all 3 COPs with regular community updates via spaces, posts, documentation or other forms of media.

C. Submission of Schedule of events and associated materials to be used in the COPs.

Final Milestone: A. Publication of Digital Identity Framework and corresponding technology stack for all signatories to issue, verify, validate and view identities of stakeholders at organizational, group and/or individual level.

B. Submission of Final Digital Identity Framework, corresponding signatories to the framework and a live web application for creation of DIDs for stakeholders.

C. Project Close Out Report and Video with official publication of final DID framework via our Project Open Source Repository.

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

The SAVE community is a members based organization that has an open framework for interested parties to join, learn and contribute. Many members are web3 native, but some are web3 novices, but experts in other fields, such as banking, financial inclusion, project management, technology and sustainability. A core of members of the SAVE community have experience working directly with these savings and lending communities at the community level, through high level data analysis and technology and via in-depth studies on how these groups impact individuals and families using or not using them. These individuals are experts in the field of Village Savings and Lending, Village Banking, Savings and Internal Lending Communities and other rotating capital models used.

Kyle Curry - Initiator and Project Lead

<u>https://www.linkedin.com/in/kbcurry/</u>

Kyle is an impact entrepreneur who has lived and worked in Zambia for the last 10 years, initially as a Peace Corps Volunteer. He is a co-founder of Nature's Nectar, a sustainable honey company that provides direct value to forests through improved beekeeping and is currently working with Zengate/Palm Economy on enhancing business operations through their suite of tools. He became interested in Cardano and web3 because of the non-transparent nature of of tradfi and 'Impact' investors, who consistently take advantage of situations for extractive gain with no repercussions.

Bence Lukas - selfdriven Foundation

<u>https://www.linkedin.com/in/bencelukacs/</u>

Bence is a former sports trainer and school teacher with 10+ years of experience in Digital Education/E-Learning and Higher Education and building learning and collaboration (infra-)structure. He also researches Blockchain through the lense of social sciences, focusing especially on Openness, Open Science and DeSci. At the selfdriven Foundation he is the Organisational Lead, managing projects and organisational operations as well as supporting the development of the educational frameworks.

Mark Byers - selfdriven Foundation

https://www.linkedin.com/in/marknbyers

Mark has been involved in computing since the 1980s and has been programming since the age of 12. He has a deep passion for how information technology can create better outcomes for individuals and collectives. He co-founded entityOS.cloud in 2000 and has a deep understanding of the creation and delivery of high-trust information systems. Since 2017, he has been focused on blockchain technology and, in particular, Cardano.

Individual Non-Proposer Contributors

• Benjamin Heurich - Education Framework and Research Lead @ selfdriven Foundation
• Collin Higgins - Community Banker and Traditional Credit Expert
• Elijah Zgambo - Entrepreneur
• Mark Byers - Technology @ selfdriven Foundation
• Niko Despopoulos - Business Development @ ZenGate Global
• Shane Lazar - ZAM POOL SPO and Pediatrician
• Zach Lager - Community and Nature Based Solutions Expert

Sector Advisors

• Amy Davis - Senior Advisor Financial Inclusion
• Hugh Allen - FinTech Entrepreneur
• Marc Bavois - Inclusive Finance Expert

All members of the network have shown they are responsible throughout their careers with handling funds. Many contributors are currently entrepreneurs, recovering entrepreneurs or have relapsed back into entrepreneurship because they saw problems that had to be solved. We do this because driving change and deep impact is what we all strive for and creating realfi is why many of us came to Cardano in the first place.

Please provide a cost breakdown of the proposed work and resources

Milestone 1: 30k ADA – 8 weeks

Collaborative Onboarding Plans Development

• Prepare and write COP for Communities - 15,000 ADA
• Local Knowledge and Understanding Translators - 5,000 ADA
• Material Development or Adaptation- 10,000 ADA
• Prepare COP for Partners - 7,500 ADA
• Local Knowledge and Understanding Translators - 2,500 ADA
• Material Development or Adaptation - 5,000
• Prepare COP for Traditional and web3 Service Providers - 7,500 ADA
• Local Knowledge and Understanding Translators - 2,500 ADA
• Material Development or Adaptation - 5,000

Milestone 2: 25k ADA – 4 weeks

Introduction and Initial Framework Meetings

• Holding Introduction and Initial Framework Meetings with Communities: 15,000 ADA
• Local Knowledge and Understanding Translators - 10,000 ADA
• Introduction Material Development - 5,000
• Holding Introduction and Initial Framework Meetings with Partners: 5,000 ADA
• Local Knowledge and Understanding Translators - 1,000 ADA
• Introduction Material Development - 4,000
• Holding Introduction and Initial Framework Meetings with T/W3 Service Providers: 5,000 ADA
• Local Knowledge and Understanding Translators - 1,000 ADA
• Introduction Material Development - 4,000

Milestone 3: 30k ADA – 12 Weeks

Implementation of COPs with Participant Groups

• Implementation with Communities: 26,000 ADA
• Local Knowledge and Understanding Translators - 5,000 ADA
• Travel, Materials, Onboarding (developed in Milestone 1) - 15,000 ADA
• Implement with Partners: 2,000 ADA
• Travel, Materials, Onboarding (developed in Milestone 1) - 2,000 ADA
• Implementation with Financial Service Providers: 2,000 ADA
• Travel, Materials, Onboarding (developed in Milestone 1) - 2,000 ADA

Milestone 4/Final Milestone: 15K ADA - 3 weeks

• Preparation and Publication of Final DID Framework and Signatories – 7,500 ADA
• Preparation and Submission of Final Project Close Out Report and Video – 7,500 ADA.

The only large dependency is 3rd party participation in the co-development process. We feel this is an easy hurdle to overcome and have already started cultivating relationships with potential organizations and individuals within the value chain. Most organizations and/or individuals that will be targeted will be through members that have direct connections.

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

The value this system will bring to Cardano will be value that has only been able to be accessed at local levels and in small ways. The value here is that we are starting the process of building real world banking infrastructure for the traditionally 'unbanked' to become 'ownbanked.' We are building on a existing community banking stack that runs on paper, pen and generally paper money, to showcase how successful these systems are because they are community based. These Savings and Lending Structures are rarely able to be access by tradfi, micro-financing, impact investors or other organizations that are rigid and inflexible to local culture and understanding. With close to 1 billion people using these systems around the world and in varying forms based on their local culture and needs, the opportunity is huge. This is a real opportunity to show how Cardano and web3 in general can drive systems change with communities that tradif refuses to or cannot work with now.

For this to be successful, we need to engage at a very root level and with trusted stakeholders that already work with and in these systems. This will not only allow us to deeply understand varying degrees of challenges within the system but showcase and discover with knowledge experts how blockchain can enhance these structures.

Recently, the Bank of Zambia, one of the prime locations for DID development and implementation stated they are developing and implementing a framework for stablecoins and crypto assets to take shape in Zambia. Through our process, we will also aim to help inform the Bank of Zambia on regulatory compliance around Savings and Lending Communities integrating with web3 to build truly new systems for national and continental economic development.