This proposal seeks 250,000 ADA to bootstrap a lightweight, community-governed innovation fund and a formal subcommittee under the Intersect Membership & Community Committee (MCC). The goal is to create a fast, cost-effective, and ROI-driven funding model that empowers the Cardano community—particularly DReps—to lead innovation oversight and budget management.

Project Catalyst currently consumes over 10 million ADA annually to administer roughly 60 million ADA in innovation funding. Despite that scale, Catalyst lacks clear ROI accountability, streamlined fund management, and efficient tooling for oversight, while also centralizing the innovation process in a single, high-cost structure. This proposal introduces a lean alternative—one that requires minimal operational overhead and gives the community the tools and authority to allocate and track funds more effectively.

Over 12 months, this initiative will establish a subcommittee responsible for designing the innovation fund’s architecture, governance framework, KPIs, and funding criteria. The team will develop lightweight reporting tools, dashboards, and smart contract templates to support ROI enforcement and milestone tracking. The subcommittee will also research systemic inefficiencies within Catalyst, including proposal duplication, fund-hopping behavior, and delivery gaps across Funds 14–16.

In parallel, the proposal will launch a public innovation portal to connect builders with VCs, mentors, and onboarding resources. The portal will support strategic project migration from other ecosystems (e.g., Solana, Ethereum) and serve as a staging ground for matching external capital with Cardano-aligned ventures. While no projects will be funded during this phase, foundational tools and processes will be created to support a future fund cycle.

By the end of the 12-month bootstrap period, the Cardano community will have a ready-to-deploy, DRep-aligned innovation fund, complete with governance infrastructure, tooling, onboarding workflows, and a strategy to measure real-world performance and return on treasury investments—without requiring the massive overhead currently seen in Catalyst operations.

Project Catalyst currently operates with over 10 million ADA in annual administrative overhead to manage around 60 million ADA in funding, yet struggles to demonstrate consistent, measurable returns. Many funded projects fail to launch, produce low on-chain activity, or lack post-funding accountability. Duplicate proposals, fund-hopping behavior, and inefficiencies in the review process further dilute Catalyst’s impact. Meanwhile, innovation funding remains centralized, with limited participation from DReps and no structured path for onboarding builders from other ecosystems or attracting external capital. The Cardano ecosystem lacks a lightweight, cost-effective funding alternative—one that empowers the community to direct capital into high-impact projects, generate on-chain activity and ROI, and establish long-term sustainability without bureaucratic complexity.

This proposal delivers a lean, transparent, and ROI-focused alternative to traditional Catalyst funding by launching a DRep-governed innovation fund with minimal operational overhead. It prioritizes high-impact projects that generate measurable on-chain activity and return a minimum of 50% of funds back to the treasury, creating a self-replenishing model. By incorporating matching capital incentives, it amplifies ecosystem investment while reducing treasury risk. The creation of a subcommittee under the MCC ensures continuous oversight, performance tracking, and research into Catalyst inefficiencies, such as duplicate funding and delivery gaps. Additionally, the proposal introduces a public portal to connect builders with venture capital, provide mentorship, and attract cross-ecosystem projects to Cardano. The result is a fast, scalable innovation mechanism that enhances treasury sustainability, strengthens community governance, and positions Cardano as a more competitive and collaborative blockchain ecosystem.

Milestone 1 (Months 1–3): Subcommittee Formation & Governance Framework The first milestone focuses on establishing the Catalyst Innovation Subcommittee under the MCC. Roles and responsibilities will be assigned, communication channels opened, and the governance structure drafted. A GitHub repository will be created to host all documentation, tools, and resources. Community contributors and DReps will be onboarded, and a regular update schedule will be initiated.

Milestone 2 (Months 4–6): Tooling, Audit Prep & Portal MVP In this phase, the MVP of a public innovation portal will be launched to attract external builders, VCs, and mentors. Initial tooling will be developed to support project tracking, ROI modeling, and Catalyst proposal mapping to prevent duplication and fund-hopping. Templates for reporting, reviews, and onboarding will be published.

Milestone 3 (Months 7–9): Catalyst Audit & Fund Design Finalization The subcommittee will review and document performance from Funds 14–16, identifying inefficiencies and improvement opportunities. The first version of the innovation fund framework will be finalized, including criteria for ROI enforcement, DRep selection tools, and impact tracking mechanisms.

Milestone 4 (Months 10–12): Community Readiness & Launch Preparation In the final stage, the subcommittee will complete a full proposal for Phase 2 funding and public launch. Live testing of tools and scoring rubrics will be conducted, and the treasury structure will be finalized. A detailed Year 2 roadmap, launch guide, and sustainability plan will be published, ensuring the fund is fully ready for deployment.

Category ADA Description Core Team Compensation 120,000 Salaries for 6–8 team members over 12 months, milestone-based disbursement Portal Development & Tooling 40,000 Public portal MVP, ROI dashboard, Catalyst proposal tracker, GitHub integration Research & Catalyst Auditing 30,000 Review and documentation of Funds 14–16, duplication analysis, system reports Mentorship & VC Onboarding 15,000 Outreach, onboarding advisors and investors, and builder engagement strategy Community Incentives & Bounties 20,000 DRep engagement, reviewer support, expert contributions, open bounties Comms, Events, and Outreach 10,000 Public reporting, AMAs, onboarding docs, language localization Admin & Operational Costs 10,000 Legal, wallet management, tool hosting, audit logs, and documentation support Contingency Buffer (5%) 5,000 Flexibility for unexpected costs or emergency technical needs

The proposal will be executed by a core team of 6–8 members supported by community contributors, technical advisors, and DReps. Roles are designed to ensure efficient use of the 250,000 ADA budget while maintaining transparency, accountability, and deliverability throughout the 12-month period.

Core Team Roles: 1. Program Lead / Subcommittee Chair (1): Oversees governance, coordination, milestone tracking, and reporting. Serves as the liaison with the MCC and Intersect. 2. Innovation Fund Architect (1): Designs the fund structure, ROI model, proposal scoring criteria, and KPI frameworks. 3. Technical Lead / Tooling Developer (1–2): Builds and maintains the portal MVP, ROI dashboards, anti-duplication systems, and open-source tooling. 4. Catalyst Audit & Research Analyst (1): Leads the review of Catalyst Funds 14–16, documents inefficiencies, and supports research into treasury return mechanisms. 5. Mentorship & VC Liaison (1): Onboards mentors, external builders, and VCs; manages builder engagement and poaching strategy from other ecosystems. 6. Community Engagement & Outreach (1): Runs community updates, manages social channels, and recruits contributors from Cardano and other blockchain ecosystems.

Additional Resources: • Contributor Bounties (Optional): Up to 5% of the budget may be allocated to bounties or honoraria for external reviewers, auditors, or ecosystem scouts. • Open Collaboration: All outputs (dashboards, documents, contracts, portal code) will be open-source and published for community feedback and contribution.

This structure ensures the project remains lean, fast-moving, and scalable—minimizing fixed overhead while maximizing impact through focused, milestone-based execution.

Rodrigo Enmanuel González Alonso Role: Project Lead & Legal Advisor Credentials: https://drive.google.com/file/d/1deMDteUzAqNrGnl94LC3odF8JXD9LS9B/view?usp=sharing Responsibilities: Oversee the project and lead the drafting of the cryptocurrency legislation. Manage stakeholder engagement and government relationships. Present the legislation to Congress. Yaqueline Escobar Role: Legal Advisor & Community Engagement Lead Credentials: https://drive.google.com/drive/folders/1rnSJr9Ith4tkNPcP8zgJqbLOuFBH9DfJ Responsibilities: Assist in legal drafting, focusing on consumer protection and transparency. Lead public awareness campaigns and workshops. Fernando Orue Role: Legal Advisor & Regulatory Compliance Expert Credentials: https://drive.google.com/drive/folders/1rnSJr9Ith4tkNPcP8zgJqbLOuFBH9DfJ Responsibilities: Ensure legal compliance with national and international standards. Support stakeholder consultations and refine the draft law. Public Relations & Communications Specialist (La Camara Blockchain de Paraguay [the cabin of blockchain of Paraguay]) Role: Government Lobbying & Public Relations Responsibilities: Manage government lobbying efforts to gain legislative support. Oversee media relations and public outreach to build awareness. The rest will be contracted from the Cardano community where possible

After the 12-month bootstrap period, the innovation fund, subcommittee, and portal infrastructure will transition into a community-managed, self-sustaining model supported by ongoing treasury returns, partner contributions, and community contributions.

1. Self-Replenishing Fund Model

The innovation fund will be designed with mandatory ROI agreements for any future funded projects. A minimum of 50% of allocated capital must be returned to the treasury, ensuring the fund grows sustainably without requiring constant new funding from Catalyst or Intersect.

2. Subcommittee Continuity Under MCC

The MCC subcommittee will remain active beyond the initial year, supported by: • Future funding proposals (if needed) tied to clear performance KPIs • Revenue-sharing from funded projects as part of the fund’s reinvestment model • Volunteer and incentivized roles, including reputation-based contributor rewards

3. Open-Source Tooling and Documentation

All dashboards, review templates, smart contract logic, and reporting tools will be open-sourced and community-maintained via GitHub. This ensures transparency and long-term accessibility, even if individual contributors step away.

4. VC & Mentor Portal Maintenance

The innovation portal will be hosted on decentralized infrastructure when possible (e.g., IPFS, GitHub Pages) and maintained collaboratively by: • A designated Portal Lead or working group from the subcommittee • Ongoing contributions from participating VCs, mentors, and projects seeking visibility • Community bounties or sponsorships from ecosystem partners

5. Governance Transition Plan

Governance of the fund and portal will remain under MCC/DRep oversight, with an optional transition to a standalone governance framework after the initial phase, if the community desires increased autonomy.

In summary, this proposal will be maintained through incentivized governance, ROI-backed treasury growth, and a transparent, open-source infrastructure designed to evolve with the Cardano community.

Intersect MCC Support: Formal recognition and support from the Intersect Membership & Community Committee (MCC) to establish the subcommittee under its structure. • Access to Catalyst Proposal Data (F14–F16): Public availability of data on funded proposals, teams, and outcomes is necessary for the subcommittee’s research on delivery performance, duplication, and double-dipping. • Community Engagement (DReps, Reviewers, Experts): Active participation from DReps, experienced reviewers, and community analysts is essential to develop the fund framework, shape governance policy, and test review tooling. • Tooling APIs (Blockfrost, Catalyst APIs): Access to existing infrastructure such as Blockfrost, Catalyst data APIs, and GitHub repositories to build lightweight tracking and analytics tools. • Collaboration with VCs and Mentors: External participation from venture capital groups, incubators, and Cardano-native mentors to support the design of the VC/builder portal and onboarding strategies. • Communication Channels: Use of official Cardano forums, Discord, Telegram, and X (Twitter) to promote participation, recruit talent, and ensure transparency.