This proposal seeks funding to accelerate the development, optimization, and ecosystem-wide adoption of programmable assets on the Cardano blockchain. Building upon the successful demonstration of capabilities via the CIP-143/CIP-113 standard, this initiative aims to transition the foundational framework from a Proof of Concept (PoC) to a robust, production-ready, and user-friendly system.

Funding will support rigorous testing, performance optimization, the creation of essential developer and user tools, and targeted ecosystem outreach. Specifically this will include:

• Programmable asset minting platform: A web application on which anyone can mint and manage custom programmable assets without any programming experience.
• Continued development of the CIP-143/CIP-113 standard: Refining and finalizing the specification based on implementation feedback and audit results.
• Code/security audits: Engaging reputable third-party firms for comprehensive security assessments.
• Lace wallet integration: Implement support for managing your programmable assets directly in the Lace wallet.
• Wallet integration incentives: Providing stipends/grants to encourage Cardano wallet teams to integrate CIP-143/CIP-113 support.
• Open-source SDK development: Creating a token issuance/minting and redemption/burn interface SDK (no/low code solution) for both Plutus and Aiken, usable by Cardano projects.

The successful execution of this project will significantly enhance Cardano's capabilities, enabling a new generation of decentralized applications (dApps) and solidifying its position as a leading platform for innovative asset types, including regulated stablecoins, soul-bound tokens, and creator-focused royalty mechanisms. This proposal is submitted with the intent for Intersect to act as administrator and auditor.

Cardano's strategic product roadmap explicitly emphasizes expanding the capabilities of programmable assets to unlock new possibilities for decentralized applications. Moving beyond simple native token transfers, enhanced on-chain asset functionality enables complex, programmable logic crucial for the next wave of blockchain innovation. Use cases envisioned include soul-bound tokens for decentralized identity, robust mechanisms for custodian-regulated stablecoins (like USDC/USDT), integrated royalty systems for creators, and enhanced DeFi primitives.

Recent work, led by IOG and Anastasia Labs to collaborate on carrying forward and refining CIP-143 (Programmable Token Standard). This effort culminated in a successful Proof of Concept, demonstrating Cardano's ability to support assets with complex logic, such as freeze-and-seize capabilities, using this standard. While the PoC served its immediate purpose in demonstrating capability, it also created a valuable foundational framework (CIP-143, smart contracts, demo application, code repository available at https://github.com/input-output-hk/wsc-poc) for the Cardano community. This proposal focuses on taking this foundational work forward for the broader community good, transforming the PoC into a fully-fledged, adoptable feature of the Cardano ecosystem.

Implementation will significantly benefit the Cardano ecosystem by maturing the CIP-143 standard into a production-ready feature:

For Developers & dApp Builders: Enables the creation of innovative dApps leveraging sophisticated programmable assets like soul-bound tokens (SBTs), regulated stablecoins, advanced royalty mechanisms, and enhanced DeFi primitives. Lowers barriers to entry with user-friendly tools (SDKs, minting interface) and clear documentation. For the Ecosystem: Enhances Cardano's competitiveness as a leading platform for advanced asset types. Fosters interoperability and composability through a unified standard (CIP-143). Attracts new projects and developers seeking these capabilities. For End Users: Indirectly benefits users through access to new applications and functionalities enabled by programmable assets (e.g., secure stablecoins, better identity solutions, richer NFT experiences). Overall Network: Increases network utility and drives on-chain activity through the creation and use of valuable, functional assets. Return on Investment (ROI): The ROI lies in enabling significant new economic activity on Cardano, increasing demand for ADA (fees, dApp usage), attracting high-value projects, fostering ecosystem vibrancy, and solidifying Cardano's technical capabilities as outlined in its roadmap.

Critical use-cases of programmable assets include:

• Dynamic Yield Tokens: Assets programmed to continuously reallocate themselves across multiple yield sources based on real-time returns, risk.
• Auto-compounding Tokens: Assets that automatically reinvest profits and rewards, compounding yields without user intervention.
• Fully Autonomous Vested Tokens: Assets released gradually based on predefined schedules or performance metrics, no manual claiming or user-intervention required.
• Event-Triggered Assets: Tokens whose transfers, lockups, or burns are automatically triggered by on-chain events.
• Dynamic Risk-Managed Assets: Tokens that automatically hedge their value against market volatility by integrating derivatives or decentralized insurance protocols.
• Risk-Adjusted Stablecoins: Stablecoins that dynamically adjust collateralization ratios and asset composition based on market volatility or collateral risks.
• Advanced DeFi Protocols: Complex cutting-edge DeFi protocols such as Ethena require customizable asset lifecycle management which can only be achieved via programmable assets.

• A programmable asset minting and management platform on which anyone can mint and manage custom programmable assets entirely via the UI.
• Completed third-party security audit reports for CIP-143 smart contracts.
• Optimized versions of CIP-143 smart contracts and associated off-chain code, publicly available in the specified GitHub repository.
• Performance benchmark report demonstrating cost and efficiency improvements compared to the PoC implementation.
• An open-source SDK for minting/burning and managing CIP-143 tokens (Plutus & Aiken compatible).
• Open-source Aiken implementations for high demand programmable asset configurations (EIP equivalents).
• Comprehensive developer documentation, tutorials, and usage guides for the standard and SDK.
• Public list/report documenting ecosystem partners (wallets, platforms) actively integrating or supporting CIP-143.
• Demonstrable integration with at least one major wallet (e.g., Lace), with full mainnet support for displaying, managing, and transferring CIP-143 programmable tokens within the project timeframe or shortly after.

Definition of Done: The project is complete when all listed deliverables are finalized, publicly released under open-source licenses, security audits are published, and initial ecosystem adoption (integrations, documented usage) is demonstrated.

We are seeking funding to cover personnel costs (development, project management, technical writing), third-party security auditing fees, ecosystem incentives, limited event costs, and operational overhead required to execute the activities outlined in Section 4 over an estimated 6-9 month timeframe. Below is an estimated breakdown of costs. Please note these are good-faith estimates and subject to refinement based on final scoping, vendor selection (for audits), and resource allocation.

• A. Core CIP-143 Development & Optimization:
  • 2 FTE: Port Ethereum asset standards (EIP-20, EIP-721, EIP-1155, ERC-1400/1404, ERC-2535) into CIP-143 modules.
  • 2 FTE: Benchmark & refactor core CIP-143 on-chain logic for gas/fee efficiency, and assist with the introduction of new Plutus Core primitives (builtin multi-asset value).
  • Estimated cost: $350,000
• B. Security Audits & Bug Bounty:
  • The security of the programmable assets contracts is incredibly important due to the amount of value they are expected to manage and the high complexity of the smart contracts.
  • Two third-party audit engagements covering both ported EIP modules and core CIP-143 contracts.
  • Bug bounty program
  • Estimated cost: $150,000
• C. Tooling & SDK Development: (Personnel: Backend Devs for SDK/Minting Tool, Technical Writer for Docs/Tutorials)
  • Estimated Cost: $100,000
• E. Programmable Asset Web App:
  • Development maintenance, and infrastructure
  • Estimated Cost: $80,000
• F. Project Management & Administration: (Personnel: Project Manager, Operational Overhead)
  • Estimated Cost: $20,000 - $35,000 (Scaled based on overall effort)

Total Estimated Funding Request: $700,000

Duration: Estimated 6-9 months. Team: Driven by Anastasia Labs, leveraging their existing expertise demonstrated in the CIP-143 PoC. Requires experienced Cardano smart contract engineers, frontend/web app developers, technical writers, and a project manager. Anastasia Labs' core team plus necessary resources for tooling/docs. Collaboration with external partners (auditors, wallets) is also required.

4 FTE - Core CIP-143 Development 1 FTE - SDK Development 1 FTE - Web App development 1 project manager

Additional breakdown is provided in full proposal document.

The primary implementing team, Anastasia Labs, possesses extensive experience in Cardano protocol development, Plutus/Aiken smart contract engineering, and building secure blockchain applications. Their capability is directly demonstrated by the successful delivery of the complex and time-sensitive CIP-143 Proof of Concept in collaboration with IOG, which involved smart contract implementation, off-chain components, UI development, and mainnet deployment. This prior work serves as the foundation for this proposal.

The finalized CIP-143 standard itself requires minimal maintenance (following standard CIP processes). The developed smart contracts, SDK, tools, and libraries will be open-sourced under permissive licenses (e.g., Apache 2.0) to foster community ownership and long-term maintenance. Anastasia Labs will provide initial stewardship, but sustainability relies on standard open-source community contributions. Major future upgrades would likely require new proposals. Documentation will be publicly accessible and updatable.

https://github.com/cardano-foundation/CIPs/pull/444 https://github.com/cardano-foundation/CIPs/tree/master/CIP-0143

The success of this project relies on the continued stability of the core Cardano protocol, the availability of skilled development and auditing resources, and crucially, the active engagement and collaboration of ecosystem partners (wallets, dApps, platforms) for integration efforts.