Disclaimer: This article should not be considered as expert advice or an endorsement of the project. The article was written based on information provided by the project team during an interview, the proposal itself, and additional research conducted online. While every effort has been made to ensure accuracy, personal biases may have influenced the writing. Therefore, voters are strongly encouraged to conduct their own thorough research and due diligence on the proposals they intend to vote on. This article should be used as a starting point for further investigation and not as the sole basis for making a voting decision.

A Quick Rundown of The Proposal

Project Description:

What is Drip Dropz Mainstreet Suit?

Mainstreet Suit is a transformative project designed to change how businesses and consumers interact with digital assets, with a focus on Cardano and its native tokens. The app, to be built on Fireblocks, will offer Cardano-native features such as loyalty points tracking, proof of ownership, and staking. This initiative not only aims to simplify the process for businesses accepting various digital assets but also extends the value of Cardano’s native tokens to existing businesses, enhancing various functionalities.

Here is a link to the video that provides a detailed description of the project:

https://www.youtube.com/watch?v=CwP1gGss71w

What is the focus of this proposal?

DripDropz’s proposal focuses on obtaining Money Transmitter Licenses (MTLs) and necessary licensing in the United States, enabling the Mainstreet Suite to offer a peer-to-peer commerce solution.

Link to Ideascale proposal: Link

Proof of Reputation

Proven Track Record

The team has a proven track record of delivering high-quality products to the Cardano Community. The core product services nearly 10,000 wallets every five days. The team members have demonstrated their expertise by providing a wealth of open source software, as well as developing powerful tools that contribute to the Cardano ecosystem.

Some of the key projects that reflect DripDropz’s capabilities include:

DripDropz Token Distribution System: An innovative system managing the distribution of tokens within the Cardano community.

Phyrhose: Phyrhose helps to handle the processing of payments on the Cardano, specifically looking at incoming payments and bundling transactions together for DripDropz.

Tokhun NFT Market: A platform facilitating the creation and trade of NFTs on Cardano.

Previous Project Catalyst Proposals

In the previous Project Catalyst round, the team submitted two proposals for Fund 9. Both were funded. “DripDropz Cardano Mainstreet Suite”proposal has been fully closed out, while the “DripDropz Open Source Voting Tool” proposal is still in progress.

Here are the links:

https://cardano.ideascale.com/c/idea/64557

https://cardano.ideascale.com/c/idea/64555

Here’s the link to that close out video: Link

What is the amount requested by the project?

The proposal requests 937,064 ADA, which constitutes approximately 10.32% of the total fund in the specified category (i.e., 9,080,400 ADA).

What problem is this project solving?

DripDropz is pursuing the Money Transfer License (MTL) and other essential US licenses to bolster its commercial solutions utilizing Cardano Native Assets. This move is geared towards offering merchants a reliable platform for token management and delivery.

In emerging markets, the project is set to launch a mobile-native marketplace, streamlining fund transfers between merchants and consumers. Central to its design is a robust framework that prioritizes fraud prevention, adherence to legal standards, and accurate reporting.

Impact

Cardano’s Native Tokens present an architecture that, when leveraged correctly, can offer businesses a myriad of unique experiences to captivate their customers. Examples include loyalty programs, pre-orders, and even store credits. 

The platform aims to provide users with easy access to Cardano and its Native Assets, expanding payment options and tapping into global markets. This proposal aims to enhance the ecosystem with additional use cases, potentially leading to increased adoption.

Feasibility

The project aims to establish a platform that could potentially rival some of the largest centralized exchanges in the blockchain ecosystem. This endeavor represents a substantial challenge. 

A primary risk that might influence the project’s feasibility is the continuously evolving landscape of blockchain regulations. 

But the approach of the team is deemed feasible as the team has hired a specialized attorney team in this specific area of work.

Value For Money

From the perspective of the Cardano ecosystem, the project’s value for money can be assessed by its potential to increase the adoption and use of Cardano Native Assets. The platform aims to provide an alternative to major centralized exchanges and facilitate transactions across multiple jurisdictions while maintaining regulatory compliance. The success of such an initiative could enhance Cardano’s presence in the market.

The existing ecosystem, however, doesn’t readily facilitate businesses to harness these capabilities. This project aspires to bridge this gap, providing businesses the tools and thereby giving them an incentive to usher in new users, subsequently benefiting the broader Cardano ecosystem.

Now, Let’s Dive into the Details

What problem is this project solving?

Emerging markets are presently confronted with the intricate task of streamlining fund transfers between merchants and consumers. To address this, the project introduces a mobile-native marketplace that aims to simplify these transactions. Additionally, the platform integrates incentive models, aiming to bolster participation from both the merchant and consumer sides.

A significant feature of this solution is its commitment to security and regulatory compliance. The platform’s design integrates tools to mitigate fraudulent activities and emphasizes adherence to legal standards and precise reporting. To further enhance its credibility, the project collaborates with an established money broker service provider to ensure that the platform aligns with prevailing regulations.

This platform’s broader goal is to identify and capitalize on untapped market opportunities for businesses and consumers. The responsibility of realizing this falls on the DripDropz team, which possesses the required expertise. They aim to promote its widespread adoption within the Cardano Ecosystem.

On the operational front, the project plans to:

• Offer a mobile payment system for consumers and small enterprises.
• Allow businesses to define their accepted tokens or currencies.
• Streamline the procedure for consumers to establish wallets and navigate the marketplace.
• Ensure transaction transparency for both parties involved.

How accessible will be the solution to users?

• Mobile-Native Design: As the marketplace is designed to be mobile-native, it caters to the vast majority of users who primarily use smartphones for their daily tasks, providing a convenient, on-the-go solution.

• Intuitive User Interface: A carefully crafted interface ensures even those without prior cryptocurrency or blockchain experience can navigate and make transactions easily, which aids in breaking entry barriers for non-tech-savvy individuals.

• Onboarding Process: An easy on-ramp system has been emphasized, which likely means that joining, funding wallets, and starting to trade or purchase will be straightforward for users.

• Integrated Security Features: Built-in tools to prevent fraud enhance user trust, ensuring they feel safe while conducting transactions.

• Legal Compliance & Reporting: By integrating compliance tools seamlessly into the interface, users won’t need to grapple with complex legal considerations or reporting tasks.

Feasibility of this Project

The feasibility of Mainstreet’s proposal is gauged by its well-defined objectives and the proficiency of the team behind it. The team has also hired a specialized attorney team in this specific area of work.

Main Goals:

1. Covering the Cost of Obtaining Money Transmitter Licenses (MTLs) in the United States:

Money Transmitter Licenses (MTLs) are regulatory mandates set forth by U.S. states to monitor and regulate businesses involved in the transfer of funds. Obtaining an MTL ensures that a business adheres to state regulations, which are in place to protect consumers and maintain the integrity of the financial system.

2. Acquiring Other Necessary Licensing for Transmitting Money Across State Lines:

In the United States, money transmission regulations can be complex due to the federal system of governance where both state and federal laws might apply. While the MTLs are a critical component, they are just a part of a broader regulatory landscape.

Transmitting money across state lines often necessitates additional licenses and permissions to ensure full compliance with the intricacies of each state’s financial regulations. Each state may have its distinct requirements, set of rules, and fee structures. These licenses ensure that businesses like Mainstreet operate within the legal frameworks when facilitating transactions that cross state borders.

By acquiring these additional licenses, Mainstreet not only ensures its operations remain within the legal bounds but also showcases its commitment to providing a transparent, secure, and regulated service to its users.

Team Expertise and Composition: DripDropz Core Team

The project team’s details and updates are available at https://dripdropz.io/about-us

, with each member’s public profile accessible for inquiries through social media.

• Kyle Solomon, Co-Founder and CEO: An alumnus of Intel, Kyle’s background as an electrical engineer in IoT and embedded systems equips him with both technical insight and a business acumen. His entrepreneurial ventures include FROG Pool, Adosia, Spacecoins, and JetChicken.
• Andrew Westberg, Co-Founder and Lead Developer: Transitioning from the retail domain to blockchain development, Andrew has been pivotal in enhancing the Cardano ecosystem. His contributions include tools like Phyrhose, JorManager, cncli, and PoolPerks, which fortify the DripDropz network.

• Latheesan Kanesamoorthy, CTO: A renowned software engineer in the Cardano community, Latheesan has architected platforms like Tokhun’s NFT system, Heidrun, and the CIP-0027 royalty standard.

• Anthony McDonough, CFO: With a history of collaborations with giants like NASA and Lockheed Martin, Anthony brings a decade’s experience in the crypto domain. His recent ventures include Bloom Pool and Crypt Keeper.

• Adam Dean, Technical Consultant: A pioneer in native assets on Cardano, Adam’s technology drives numerous NFT projects. His open-source ventures like Mercury and SPOCRA enhance the industry’s toolkit.

• Quinn Parkinson, Lead Plutus and Smart Contract Developer: A product of the inaugural Plutus training, Quinn’s mathematical prowess has birthed initiatives ranging from on-chain voting to NFT marketplaces.

• Chris Hockaday, Business Development: With a Lean Six Sigma specialization, Chris has been an integral part of projects like Verge Protocol, Adosia, and Tokhun.

• Lloyd Duhon, Chief Operating Officer: A US Army veteran, Lloyd’s multifaceted expertise spans from SEO to project navigation. His leadership at Living Greens Urban Farm speaks volumes about his impact in the domain.

Project Dependencies

Mainstreet’s project hinges on coordinating with bureaucratic entities across all 50 US states and 4 territories. This is not just a logistical challenge; it’s a multifaceted undertaking that requires aligning with the diverse regulations and protocols of each jurisdiction.

Adhering to state-specific rules is essential since each has its own unique demands and timelines. This involves adeptly navigating various legal frameworks and efficiently allocating resources. Delays could result from extended bureaucratic processes or feedback necessitating project modifications.

Budget Breakdown

The team is requesting 937,064 ADA ($234,266 @ $0.25 ADA) from the community, which will be allocated immediately towards fees, first-year license costs, bonds, and contract expenses.

The fees and requirements are compiled in a spreadsheet, accessible via the linked PDF

Impact Assessment:

Measurable Outcomes:

Signed Applications: Successful submission of signed applications to each targeted state by the end of the set timeline.

Service Provider Contracts: Execution of signed contracts with the designated service providers.

Engagement with IOG/Catalyst Staff: Due to the sensitive nature of the information, these deliverables will be shown to IOG/Catalyst Staff and the community representative.

Business Model and Monetization Plans for Future Sustainability:

The primary revenue model is similar to many web3 companies – focusing on transaction fees. They found that the average user on fiat-only payment applications pays around $53 a year in fees, whereas on crypto exchanges, users pay roughly $138 a year in fees. The goal is to tap into this model to drive revenue for sustainability.

Comparing various platforms from both fiat and crypto ecosystems, they anticipate a 70% year-to-year growth rate.

Risk and Contingency Planning:

Every project faces potential risks and challenges.

Risk Identification:

1. What are the possible risks or challenges that might impede the project?

Regulatory Environment and Licensing: Navigating the licensing process for money transmitter licenses (MTLs) could pose challenges. The regulatory environment, particularly in the U.S., is a significant concern. Although the ripple case has provided some clarity, it still presents risks. The process of acquiring MTLs can take considerable time and might face unforeseen obstacles.

Investment Challenges: Capturing the interest and excitement of the investment community is crucial. The project team needs to align their offerings, pitch deck, and financial projections in a way that attracts investors. A potential risk is the inability to secure sufficient investment, which could hinder project development or implementation.

Technical Development and Implementation: Achieving a full exchange functionality is still in the conceptual phase. Integrating such functionality into the business model or developing the capability to facilitate the exchange of multiple tokens is a complex task.

User Growth and Market Acceptance: Achieving the anticipated year-to-year growth in user base, especially when looking at figures like 70% growth, can be challenging.

Ensuring a rapid user adoption and retaining them requires effective marketing, a strong value proposition, and seamless user experience.

External Competition: With many platforms and payment applications in the market, there’s always a risk of facing stiff competition, which might affect user acquisition and retention.

Operational and Internal Challenges: Aligning all the moving parts, from the prototype demonstrator to getting in front of investors and handling marketing, can present operational challenges.

Adherence to Different Jurisdictional Rules: As the company plans to operate internationally, adapting to and complying with different rules in various jurisdictions can be complex.

2. Will the Project be Open-Sourced?

No, This is primarily driven by the need to safeguard their intellectual property and maintain a distinct competitive edge. 

3. Are there contingency plans if they are not funded by Catalyst?

If not funded by Catalyst, the team has contingency plans in place. Specifically, they would pivot towards more traditional avenues of funding to ensure the project’s continuation and success.

Conclusion.

The DripDropz Mainstreet Suit represents a pioneering step in the digital assets landscape, aiming to revolutionize the interaction between businesses and consumers in the Cardano ecosystem. With its emphasis on Cardano-native features, the project envisions a future where businesses can seamlessly accept a variety of digital assets and provide value-added services like loyalty points tracking, proof of ownership, and staking.

The team, with its commendable track record, is actively pursuing Money Transmitter Licenses and other essential U.S. licenses to bolster its position in the market. Central to their mission is a mobile-native marketplace in emerging markets.

This project is not just an ambitious endeavor in the blockchain world; it represents a genuine effort to bridge the existing gaps that prevent businesses from fully harnessing the capabilities of Cardano’s Native Tokens. With a meticulously designed framework, the Mainstreet Suit emphasizes security, legal compliance, and transparency. As they navigate the complexities of obtaining licenses across the U.S., the challenges are many, given the intricate regulatory landscape. Yet, the potential upside for the broader Cardano ecosystem is significant.