Discussion Details

None of these
Type
ACTIVE

A free Native Asset CDN for Cardano Developers

13 comments
Submitted: 21 Apr 2025, 12:59 UTC (Epoch 553)
Updated: 30 Apr 2025, 08:12 UTC (Epoch 555)
# ID:36
nf

nftcdn

Budget£242,000 (605,000 ADA)
ADA Rate$0.5
Preferred CurrencyBritish Pound Sterling (GBP)
Contract TypeService Level Agreement

Description

Building reliable infrastructure to display Cardano native assets (NFTs &FTs) efficiently, at scale, can cost upwards of $100,000 and take 9+ months of development effort. We propose to deliver a free Native Asset Content Delivery Network (CDN) for Cardano, by making our existing NFTCDN services free to use for anyone building on Cardano. NFTCDN has been operating since 2022 and provides fast, reliable and resilient multimedia and metadata delivery through a globally distributed CDN, enabling projects to display native assets effortlessly. By removing technical and financial barriers, NFTCDN allows developers to focus on product innovation and growth, accelerate time-to-market, and promotes wider adoption and implementation of native assets within apps across the Cardano ecosystem.

Problem Statement

Background - Native Assets

  • Native assets (NFTs & FTs) are widely used on Cardano across diverse use cases
  • Often used to store multimedia content - images, music, videos, documents, etc
  • Media is stored on decentralised systems - IPFS, Arweave, and on-chain embeds
  • Centralised storage options also used - HTTP, FTP & commercial cloud providers
  • File locations are referenced as links within the native asset’s metadata

Pain Point - Technical Complexity

  • Accessing native asset media requires querying the blockchain (Cardano node + DB-Sync)
  • And fetching content via middleware (e.g. IPFS gateway/node)
  • Apps must handle this process programmatically, at scale, with robust exception handling
  • Developers face challenges from:
    • Human error (e.g. typos in metadata links)
    • Evolving standards (e.g. NFT v0.01, CIP-25, CIP-68)
    • Protocol updates (e.g. Chang HF impacting Node & DB-Sync)
  • Performance, efficiency, and reliability must be maintained across all layers
  • Apps must build and maintain complex, resilient backend infrastructure to support native asset display as both a capability & feature

Solution – NFTCDN

  • NFTCDN is a managed Infrastructure-as-a-Service (IaaS) provider
  • Provides high-availability native asset media & metadata delivery via globally distributed, high-speed Content Delivery Network
  • Developers access content using only the native asset fingerprint ID - no complex setup needed
  • Eliminates the need to design, build, test, & maintain complex end-to-end infra
  • Enables focus on innovation of their product - not backend ops

Problem Statement - Cost to Build/Access

  • Building native asset delivery infra in-house costs ~$100,000 and 9+ months (internal benchmarks)
  • NFTCDN solves upfront CAPEX/OPEX needs
  • But we are a paid service (pay-per-API-call) - limiting adoption
  • Only well-funded teams have been able to integrate NFTCDN to date
  • Many projects cannot afford the cost, leading to delays, increased risk, or total shutdown
  • Market headwinds further impacted adoption, with some customers forced to shut down due to reduced user base

Proposal – The Ask

  • Fund NFTCDN to make it free for all Cardano builders for 18 months under an SLA contract
  • Cover operational & infra scale-up costs to deliver enterprise-grade Native Asset CDN
  • Enables us to provide our solution to the Cardano community for free
  • Removes cost barriers, fuelling innovation, faster development, and wider adoption

Proposal Benefit

$5.5m cost avoidance opportunity & ~39,000 dev. hours savings for products seeking to integrate native asset display – removing barriers to entry, faster new product launches, improved end-user exp. & increased innovation prospects.

Tangible Benefits ($5.5m cost savings | 39,000 dev. hours savings | >17x ROI)

  • Eliminate up-front infrastructure costs (~$100,000 per product) for native asset display
  • Accelerate product development by 9+ months by removing the need to build and maintain complex, scalable infrastructure
  • Immediate cost avoidance opportunity of ~$1.5m and ~23,400 developer hours across 15+ existing NFTCDN customers
  • Additional cost avoidance opportunity of ~$1m and ~15,600 developer hours during proposal funding cycle by onboarding at least 10 additional products
  • Maintenance & operational cost avoidance of $3m for 25 NFTCDN users during proposal funding cycle
  • Proposal cost of ~$320k with a ROI of 17.20x

ROI Calculations Breakdown

  • Typical development cost of infrastructure to support native asset display:

    • ~9 months / 1,560 dev hours
    • ~$100k (developer, PM, infra) per product
  • Typical annual running & maintenance cost:

    • ~$100,000 in salaries for labour (back- & front-end, networking, storage, cyber security, admin)
    • ~$20,000 infra cost (servers, hosting, licenses)
  • Tasks avoided by using NFTCDN:

    • Cardano node + DB-Sync + Other Cardano software setup & upgrades
    • Middleware for native Asset metadata parsing (CIP-25, CIP-68, v0.01)
    • Middleware for metadata error and edge case handling
    • Integration with IPFS, Arweave, HTTP, on-chain storage systems/protocols
    • Middleware for multimedia content optimisation
    • Security handling (e.g., malware in native assets)
    • Real-time monitoring pipeline of native asset minting & updates
    • End-to-end routing pipeline, including maintenance and updating
    • Regulatory compliance review & management process overhead
    • Performance, reliability, and redundancy infrastructure
  • Savings for Current NFTCDN Users (15 active projects)

    • Dev Hours Savings = 23,400 (1,560 hrs x 15 current projects)
    • Labour & Infra Savings = $1.5M in cost avoidance ($100k x 15 current projects)
  • Savings from +10 new projects onboarded during proposal period (conservative est.)

    • Adds 15,600 dev. hours and $1M in additional savings for newly onboarded projects into NFTCDN for duration of proposal (18 months)
  • Savings for on-going maint. & ops cost (25 projects)

    • Adds $3m in additional savings ($100k + $20k x 25 total projects using NFTCDN)
  • Total value returned:

    • ~39,000 dev hours saved for initial development
    • ~$5.5M total ecosystem cost avoidance
  • Proposal cost: ~$320k

    • Estimated ROI: ~17.2x
    • Equivalent of ~19 years of cumulative dev time saved

Intangible Benefits

  • Removes Adoption Barriers - Eliminates financial (OPEX/CAPEX) & technical (dev. complexity) barriers to entry
  • Accelerates Time-to-Market - Enables fast and easy integration of native asset features/capabilities
  • Frees Up Product Teams - Reduces backend overhead, letting teams focus on core feature dev, growth & adoption
  • Boosts Developer Adoption - Makes accessible for early-stage, under/unfunded and community (free-product) builders
  • Enables Broader Innovation - Enables exploration of new native asset use cases (RWA, identity, media, education)
  • Future-Proof Native Asset Delivery - Adapts to evolving standards; all users benefit from shared upgrades and fixes
  • Eliminates Redundancy - Shared infrastructure avoids every project building redundant, costly systems
  • Improves End-User Experience - A high-speed, enterprise-grade, globally distributed CDN for multimedia content substantially improves loading speeds
  • Drives Ecosystem Growth – Native asset adoption across more apps creates compounding utility and user adoption
  • Aligns with Cardano's Goals & Roadmap – Directly supports Cardano's 2025 roadmaps goals around simplifying developer experience, increasing real-world utility and improving end-user experience

Aligns w/ Proposed Cardano 2025 Goals & Roadmap

  • "Get More Usage" Category
    • Goal: Attract DApps and users - product market fit
    • Goal: Easier to build on and to use Cardano
    • Goal: Cardano competitive option
    • Goal: Clear funding mechanisms
  • "Developer/User Experience" Category

Key Proposal Deliverables

Proposal Objectives

  • Make NFTCDN free to use for all for a period of 18 months
  • Onboard new and existing products/projects
  • Report on realised benefits & utilisation metrics

SLA Deliverables

1. Free Access to NFTCDN for 18 months

  • Access to existing NFTCDN endpoints (/image/preview/file/metadata)
  • Mainnet & Testnet (pre-prod and preview) coverage
  • Implementation of abuse protection measures to ensure fair-use and sustain service performance & stability as per NFTCDN AUP
  • Services will be provisioned under NFTCDN T&Cs

2. Community Usage Reporting of KPIs

  • Provision of monthly usage metrics to demonstrate value delivered:
    • (i) Number of projects actively using NFTCDN
    • (ii) Number of new projects onboarded since last reporting period
    • (ii) Volume of requests served across endpoints
    • (iii) Realised savings (cost-avoidance & dev. hours) achieved & ROI delivered to-date

3. Personalised On-boarding, Technical Support & Maintenance

  • 1:1 on-boarding support via direct communication channels (NFTCDN Discord)
  • Technical support throughout the 18-month period
  • Performance monitoring & maintenance to ensure service provision

Definition of Done

  • NFTCDN is made fully free to use within 30 days of initial funding
  • The free service remains operational for a full 18-month period, post initial dev. work(s) to make the service free for users
  • Community facing reports provided monthly to show growth in users, service utilisation volumes and cost-benefits realised

Cost Breakdown

Cost Breakdown - 1+18 months duration

  • Labour costs @ £195.2k
  • Infra costs @ £46.8k
  • NB. costs-split may vary depending on infra scaling requirements (e.g. provision of adequate compute to balance demand)

Payment Terms & Schedule

  • Proposing quarterly payment for service provision
    • 5 cycles - 20% of funds per cycle
    • Initial funds provided upon proposal acceptance (1st cycle)

Resourcing & Duration

Team

  • Smaug (NFTCDN Founder & CTO)
  • Rocky (NFTCDN Founder & COO)

Duration

  • 12 months, plus initial setup time (est. <30 days)
  • Team is available as needed, with priority support for incident response and on-going performance optimisation

Experience

About NFTCDN

  • Established in 2022
  • Testnet (Preview & Pre-Prod) and Mainnet coverage of all native assets
  • Service(s) offered on pay-per-API-use tiered pricing model
  • Existing customers include Verspr, Eternl, Tokeo, NEWM, NMKR, Pool.pm
  • Have served 800+ million API requests as of April-2025
  • Currently running with 100% uptime since launch

How is NFTCDN different from a basic CDN (e.g. Cloudflare, Vercel, etc)

  • NFTCDN is purpose-built for Cardano: NFTCDN is more than a CDN. Direct API access to /metadata, /image, /file native assets using only their fingerprint ID. Cloudflare offers no blockchain/NFT support; this would have to be custom built by devs.
  • Multi-protocol/system support: NFTCDN auto-handles multimedia storage fetching from IPFS, Arweave, HTTP, on-chain. Cloudflare requires devs to build fetch/parsing logic manually on their own infra setup.
  • Standards-aware infra: NFTCDN supports CIP-25, 68, v0.01 and adapts as they evolve. Cloudflare has no protocol awareness - devs must implement parsing module compliance manually and cater for human error and edge cases.
  • No infra required: NFTCDN handles full resolution flow (parsing, error fall-back, and format support) out of the box. Cloudflare needs origin setup and content pre-hosted on their proprietary solutions.
  • Real-time chain indexing: Native assets state updated live (minting & updating) from chain. Cloudflare requires manual indexing, pointer mgmt, and cache invalidation.
  • Cloudflare TOS risk: Large or non-web file caching (image, audio, video, 3D files) is restricted; in-production use will violate TOS unless using proprietary paid products (Stream/Images/R2, c. ~$5k+/yr).
  • Global cross-app caching: NFTCDN caches assets at the asset level, so cache HITS benefit all products (websites & dApps). Cloudflare caches per domain/site - no sharing resulting in low CDN performance resulting in higher cache MISS states.
  • Built-in content safety: NFTCDN provides CSP headers + dev. controls over rendering. Cloudflare lacks native asset-specific safeguards, increasing risk of suspension due to embedded malicious multimedia content.

Maintenance & Support

Post-Proposal Completion - What happens next?

  • The proposal (2025 budget cycle) seeks to fund infra & ops scale-up costs to make NFTCDN free to use for 18 months
  • We will actively monitor and report on the impact delivered throughout the funding period
  • Ahead of the next budget cycle (2026), we intend to submit an SLA renewal proposal, evidencing value delivered to Cardano
  • We will maintain proactive communication with our users to ensure transparency around any changes, including a potential return to a paid subscription model

Non-Renewal of SLA

  • In the event of non-renewal, NFTCDN will revert to a paid subscription model
  • To mitigate risk of delays in the 2026 Cardano budget process, a 18 (+1) month SLA has been proposed
  • This provides NFTCDN & projects sufficient time to transition
  • NFTCDN's /metadata endpoint will remain free with a licensing charge (as it is today), to enable projects to still acquire native asset metadata
  • Using NFTCDN's Open Source JS Media Library Tool, projects will be able to pivot from using NFTCDN as a source of native asset display to the native protocols/system embedded within the asset's metadata
  • This of course means they will not be able to enjoy the benefits of reliability, performance and simplicity provided by NFTCDN

Supplementary Endorsement

User Feedback

"CSWAP DEX has been using NFTCDN for over a year on our NFT & RWA marketplace, (www.cswap.market). It’s been a rock-solid, high-performance piece of infrastructure—absolutely critical not just for the Cardano NFT space, but also for the emerging Cardano RWA sector. NFTCDN makes it dramatically easier for builders to deliver smooth, reliable user experiences. We strongly support this proposal to make NFTCDN free for users—it’s a foundational layer the ecosystem relies on." - CSWAP

"NFTCDN has been a game-changer for us. The integration was truly plug-and-play—we set it up once and haven’t had to touch it since. Performance has been consistently excellent, and the quality of service is top-notch. We’ve never experienced any issues or downtime, and their support team is responsive and helpful whenever we’ve had questions. It’s rare to find a solution that just works—but NFTCDN does exactly that." — Trading Tent

"NFTCDN allows NEWM to quickly and easily display and hear our Arweave images and music clips on the NEWM marketplace and NEWM studio. Users experience seamless skip-free audio and it was a breeze to integrate the service." - Andrew Westberg (CTO - NEWM)

"NFTCDN works so flawlessly I did not have to think about it for the last year. NFTCDN is the most efficient way to offer all kinds of ecosystem images and media to our user base. Kudos to the team for providing a great and reliable service." - Marcel Baumberg (CEO - Eternl Wallet)

Products Currently Using NFTCDN

  • Pool.pm
  • Eternl Wallet
  • VESPR Wallet
  • Tokeo Wallet
  • CSWAP DEX
  • NEWM
  • Cur8
  • Trading Tent
  • Icebeglabs
  • KWIC
  • Levvy Finance
  • Poki
  • HazelNet
  • Buffy Bot
  • NMKR

NFTCDN Integration Opportunities

  • Blockchain Explorers: eutxo.org, Cardano Scan, AdaStar, PoolTool, Cexplorer.io
  • Wallets: Lace, Typhon, Yoroi, Atomic, Begin, GameChanger, Gero, Medusa, NuFi,
  • DEXs: MuesliSwap, SundaeSwap, TapTools, Danogo, DripDropz, DexHunter, Miniswap
  • Marketplaces: JPG Store, JAMONBREAD, ADANFT, CardaHub
  • Bespoke Projects: Book.io, cardano-tools.io, CNFTLab Party, flipr.io, cnft.tools

NB. List does not contain new innovative products looking to build on Cardano

Roadmap Alignment

Does your proposal align with any of the Intersect Committees?

None

Does this proposal align to the Product Roadmap and Roadmap Goals?

Developer / User Experience

Administration and Auditing

Would you like Intersect to be your named Administrator, including acting as the auditor, as per the Cardano Constitution?

Yes

Ownership Information

Submitted On Behalf Of

Company

Social Handles

[NFTCDN Twitter](https://x.com/nftcdn_io) | [NFTCDN Discord](https://discord.nftcdn.io) | [Email Us](mailto:contact@nftcdn.io)

Key Dependencies

External Dependencies

  • On-time proposal payment aligned to an agreed payment schedule

Internal Dependencies

  • Change of subscription model architecture to remove any charges to developers for using NFTCDN (est. ~30 days / 1 month to complete)
Created:4/21/2025
Updated:4/30/2025
ID:536
Poll Results
Votes: 17
Should this proposal be funded in the next Cardano Budget round?
YES
6 (35%)
NO
11 (65%)

Comments (13)

Apr 30, 2025, 08:13 AM UTC

Conditionally YES

At first glance, it may seem odd to support this proposal, but after many conversations, I understand it as follows. Please point out any strange assumptions.

According to NFTCDN, in short, it is not very profitable in the current market, but it is an essential service for products that handle native assets and NFTs. In other words, it is maintained by volunteers in a sense. (Full-time company employees maintain it, but if you take into account their operating labor costs, it will be in the red.) Raising the price to make it profitable will be a blow to existing developers and especially new developers. If you try to develop and maintain NFTCDN in-house, it will cost a huge amount of money, so no one wants to do it.

In other words, NFTCDN is already in a semi-public good position. It is intended that the NFTCDN team will maintain this public good for 18 months with treasury support.

In other words, this proposal is charging a fee to make a semi-public good that is (in a sense) maintained by volunteers into a public good by paying for its maintenance.

As a condition, I would like this to be close to open source, that is, to have documentation prepared so that anyone can reproduce NFTCDN in their own company. Developers who can start NFTCDN businesses can participate. This will make NFTCDN a true public good. I heard that NFTCDN is expensive to maintain, but perhaps a team capable of maintaining it with reduced labor costs will emerge in an Asian country, for example.

Apr 30, 2025, 08:13 AM UTC

While this project might be important, Catalyst might be a better fit because of the size of the budget.

Apr 30, 2025, 08:13 AM UTC

I see the usefulness of this tool to the Cardano community, but I think it is a proposal that is stuck between two concepts (free vs paid). The pitch is to make the service "free" to Cardano for 18 months, but it is more of a free (paid by the community) trial of the service.

I would be more willing to support this proposal if it was open sourced to the community so that Cardano gets long lasting benefit for the ADA paid.

Since this is a service already in operation that seems to be having difficulties with product market fit (Only well-funded teams have been able to integrate NFTCDN to date Many projects cannot afford the cost, leading to delays, increased risk, or total shutdown), I would suggest that there is an overall issue of how to generate revenue for the NFTCDN business with current pricing models.

Perhaps NFTCDN needs to operate as a subscription service with an affordable monthly cost, with pricing tiers based on usage?

If community funds are desired for an already operational service, perhaps a compromise can be reached. Cardano community ownership in the company/product with a % of revenues going back to the treasury seems to be a good way to do this.

If Cardano is to subsidise this product because it is such an essential tool, but the builders desire to maintain it as a for profit service, then this makes the most sense to me.

alexander
Apr 30, 2025, 08:13 AM UTC

Are the metrics going to be public? For example, which wallets did how many requests and so on?

Apr 30, 2025, 08:13 AM UTC
  1. Does the benefit of this proposal disproportionately favor NFT and RWA projects? How will general dApp developers and end users also gain value from this investment?

  2. What is the basis for the claimed savings of ~23,400 development hours and $1.5M in cost avoidance for existing customers? Can the estimation methodology be disclosed?

  3. What specific KPIs (e.g., number of projects onboarded, request volume, development hours saved) will be tracked and how will they be reported? Will these be transparently published for community verification?

  4. "No other service in industry offers this functionality today." Yes, if this passes and is provided for free, there will undoubtedly be no alternative for the next 18 months...and this is what worries me. It's very hard to compete with something that's offered for free. But in reality, no one wants to compete, with or without Treasury subsidy, so this may simply be a philosophical question. personally, I think that placing certain restrictions on making it free may be one option. but Maybe I'm overthinking it.

Apr 30, 2025, 08:13 AM UTC

Budget Proposal Workshop Participant Feedback - Hosted by Japan Hub

Feedback Summary: ・The return on investment (ROI) is unclear and should be specified. ・Since the service is already operational, requesting funding retroactively raises questions. ・Clarification is needed on the number of developers expected to use it and the marketing efforts planned during the free period. ・Concerns were raised regarding the sustainability of the service after the 18-month free trial. ・Competing services (e.g., Cloudflare, Vercel) already exist and offer similar functionalities for free or low cost.

Suggested Improvement: ・Provide a concrete business plan, including sustainability strategy, usage projections, and detailed cost breakdown.

We respectfully submit this feedback for your consideration.

Apr 30, 2025, 08:13 AM UTC

Given that NFTCDN is already operating as a for-profit service, is it fair and appropriate to use Cardano Treasury funds to fully subsidize the service for all developers? This might add a bit of complexity, but if the goal is to make native assets accessible to more developers and projects, might that be achieved more effectively by being more targeted, such as only subsidizing the costs with a discounted 6-month free trial for new projects?

Governance Space on Cardano Blockchain

Are You Ready to Participate?

Building Together to Drive Cardano Forward.