해당 Treasury Withdrawal은 **Complement Catalyst: Extended Quadratic Funding—Zero Operational Costs** 프로젝트에 자금을 지원함.

이 프로젝트는 Project Catalyst를 보완하는 혁신적 자금 조달 메커니즘을 제공하며, 블록체인 생태계 혁신 자금 조달의 다섯 가지 주요 문제점인 집중된 투표권력, 재무 기금 한계, 불충분한 영향 보고, 불확실한 ROI, 비효율적 마일스톤 관리를 해결함.

운영비용이 전혀 들지 않아 100%의 자금이 직접 Cardano 프로젝트에 투입됨.

Quadratic funding과 평판 기반 시스템을 결합해 보다 민주적이고 투명하며 효과적인 자금 배분 과정을 만들고, 재무 기금의 영향력을 극대화함.

이 Treasury Withdrawal은 Intersect가 벤더를 대신해 제출했으며, Abstract, Motivation, Rationale, Vendor Profile은 벤더가 Intersect 예산 절차의 일부로 제출한 승인된 제안서에서 발췌했음.

총 ₳275.27M 규모의 승인된 예산 집행을 위한 39개 제안 중 하나에 자금을 지원하며, Intersect가 gov_action1u9x73kwufaxa70lfy59g4ynwyrcsaxdcd0gxzzmh67s9fxq4j8hqqk2phgh를 통해 관리함.

이 정보는 Cardano 헌법상 Treasury Withdrawal 정보 공개 요구사항을 충족하며, 제안된 솔루션 세부사항, 예산 정렬, 인출 금액을 명확히 제공함[1][2][5].

---

**주석**
- Quadratic funding: 기부자 수에 따라 자금 배분이 비례적으로 증가하는 자금 조달 방식
- ROI: Return on Investment, 투자 수익률
- Milestone: 프로젝트 진행 단계별 목표
- Treasury Withdrawal: Cardano 재무 기금에서 자금 인출
- Intersect: Cardano 커뮤니티 예산 집행을 담당하는 조직
- Vendor: 제안서 제출 및 프로젝트 수행 주체

Project Catalyst는 카르다노(Cardano) 생태계 내에서 혁신을 촉진하는 핵심 펀딩 프로그램임. 지금까지 ₳293M(약 $150M 이상)을 배분해 2,090개 이상의 프로젝트에 자금을 지원했음. 이 중 약 절반인 1,050개 프로젝트가 완료되었음[1][4].

이 펀딩은 카르다노 재무부에서 조달되며, 제안된 아이디어를 커뮤니티 투표를 통해 선별해 자금을 배분하는 탈중앙화 혁신 엔진임. 투표는 온체인에서 이루어져 투명성과 감사 가능성을 확보함[2][4].

프로젝트 카탈리스트는 다양한 분야의 Web3 프로젝트를 지원하는데, 여기에는 거버넌스, 교육, 개발 도구, 디파이(DeFi), 분산 신원, 엔터테인먼트 등이 포함됨. 이는 생태계 전반에 걸친 포괄적 혁신을 목표로 함[1].

그러나 블록체인 생태계 혁신 펀딩에는 다음과 같은 5가지 주요 도전 과제가 존재함.

- **투표 권력 집중**: 일부 참여자에게 투표 권한이 집중되어 공정한 의사결정에 장애가 됨.

- **재무부 자금 한계**: 한정된 재무부 자금으로 인해 모든 유망 프로젝트에 충분한 지원이 어려움.

- **불충분한 영향 보고**: 프로젝트 성과와 영향에 대한 체계적이고 투명한 보고가 부족함.

- **불확실한 투자 수익(ROI)**: 펀딩 결과의 경제적·사회적 효과 측정이 어려움.

- **비효율적인 마일스톤 관리**: 프로젝트 진행 상황과 목표 달성 관리가 체계적이지 못함.

이러한 문제를 해결하기 위해 Project Catalyst는 온체인 데이터 분석과 마일스톤 프로그램을 도입해 펀딩 효율성과 프로젝트 성과를 지속적으로 평가하고 있음[3][5].

---

**주석**

- *재무부*: 블록체인 네트워크 내에서 운영 자금을 관리하는 중앙 펀드

- *온체인*: 블록체인 네트워크 상에서 직접 기록되고 검증되는 활동

- *마일스톤 프로그램*: 프로젝트 진행 단계별 목표 설정 및 평가 체계

- *디파이(DeFi)*: 탈중앙화 금융 서비스

해당 프로젝트는 **Extended Quadratic Funding(확장된 제곱근 펀딩) 모델**을 통해 Cardano의 Project Catalyst를 보완하는 혁신적인 펀딩 메커니즘을 제안했음.

1. **민주적 의사결정 강화**
투표권은 기부금의 제곱근과 300~850 범위의 로그형 명성 점수(Impact Score)를 결합해 산출함.
이를 통해 재정 기여와 커뮤니티 영향력을 균형 있게 반영하며, 부의 집중이 결정권을 독점하는 것을 방지함.
시스템 무결성을 위해 Hyperledger Identus 기반 영지식증명 KYC로 1인 1계정을 보장하고, 시빌 공격 및 담합 방지책(명성 인센티브, 처벌, 경제적 비효율성 유도, Connection-Oriented Cluster Matching 등)을 적용함[1][2][3].

2. **재무 영향력 증대**
국고 자금뿐 아니라 개인 기부를 유치해 자본을 50% 이상 확대함.
미국 기부자는 501(c)(3) 세금 공제 혜택을 받아 암호화폐 외부에서도 기부 유인이 생김.
예를 들어, 1M 달러 국고 배분 시 500K 달러 개인 기부를 유도해 총 1.5M 달러 규모 펀딩과 커뮤니티 참여 확대를 기대함[4].

3. **표준화된 임팩트 보고**
모든 지원 프로젝트는 지정된 임팩트 회계사와 계약해 온체인 거래, 신규 지갑 생성, 활성 사용자 수 등 표준 지표를 보고함.
이를 통해 Cardano 생태계 내 혁신 투자 수익률(ROI)의 최초 종합 데이터셋을 구축함[1][2].

4. **지속 가능한 가치 환수**
프로젝트는 자발적으로 지분, 토큰 할당, 수익 공유, 탄소 배출권 등으로 생태계에 가치를 환원함.
10년 내 연 5% 수익률 목표를 설정했으며, 이는 미국 벤처캐피털 평균 연 4~8.5% 수익률과 유사한 수준임[4].

5. **효율적 마일스톤 관리**
신속한 리뷰어 결정을 위한 토큰 인센티브와, 뒤집힌 결정에 대한 금전적 페널티를 도입함.
분산형 분쟁 해결 메커니즘도 마련해 속도와 정확성을 동시에 추구함.
이는 소액 펀딩을 원하는 팀에게 Catalyst의 긴 승인 절차보다 유리함[4].

**팀 프로필**
Socious 팀은 Project Catalyst, Singularity Net, GitCoin 등에서 경험을 쌓았으며, Hyperledger Identus 기반 신원 시스템 개발 경험도 보유함.
주요 인원으로는 창업자 겸 CEO인 Seira Yun(사회혁신 석사, Cardano 앰배서더), 프로젝트 관리, 개발, 디자인, 법률, 데이터 과학 전문가들이 포함됨.
법률·회계 컴플라이언스도 엄격히 준수하며, Tatsumi Accounting Firm, BBCIncorp, Enlighten Law Group과 협력 중임[1][4].

**계약 및 예산 관리**
Cardano Development Holdings(CDH)와의 오프체인 법적 계약을 체결하며, Intersect가 프로젝트 일정과 분쟁 해결을 관리함.
Sundae Labs가 개발한 스마트 컨트랙트 기반 국고 관리 시스템을 활용해 투명한 자금 집행과 커뮤니티 감사가 가능함.
Intersect는 다수의 관리자와 외부 감시 위원회(예: Sundae Labs, Cardano Foundation 등)로 구성되어 권한 분산과 오류 방지를 보장함[4].

---

**주석**
- *Quadratic Funding*: 기부금 제곱근에 비례해 투표권을 부여하는 펀딩 방식
- *Impact Score*: 개인의 사회·환경적 기여도를 수치화한 명성 점수
- *Sybil resistance*: 동일인이 다수 계정을 만들어 부당 영향력을 행사하는 행위 방지
- *Connection-Oriented Cluster Matching*: 담합 방지용 클러스터 매칭 알고리즘
- *501(c)(3)*: 미국 비영리 단체 세금 공제 조항
- *UTxO*: Unspent Transaction Output, 블록체인 거래 단위
- *DRep*: Cardano의 탈중앙화 대표자(Delegate Representative)
- *On-chain*: 블록체인 상에서 직접 처리되는 행위

This treasury withdrawal funds **Complement Catalyst: Extended Quadratic Funding---Zero Operational Costs** which will provide the following services:

An innovative funding mechanism to complement Project Catalyst by addressing five critical challenges in blockchain ecosystem innovation funding: concentrated voter power, treasury fund limitations, inadequate impact reporting, uncertain ROI, and inefficient milestone management. The solution has zero operational costs---100% of funds go directly to Cardano projects. By combining quadratic funding with a reputation-based system, it will create a more democratic, transparent, and effective allocation process while maximizing treasury fund impact.

This Treasury Withdrawal is submitted by Intersect on behalf of the vendor. The following sections; Abstract, Motivation, Rationale and Vendor Profile have been sourced from the approved proposal submitted by the Vendor as part of the Intersect budget process.

This treasury withdrawal funds one of 39 proposals to give effect to the approved budget info action for ₳275,269,340, administered by Intersect via gov_action1u9x73kwufaxa70lfy59g4ynwyrcsaxdcd0gxzzmh67s9fxq4j8hqqk2phgh. The information provided herein is intended to fulfill the spirit of the constitutional requirement for a treasury withdrawal info action by also providing the details of the proposed solution, alignment to the budget, and amount to be withdrawn from the Cardano Treasury.

Funding innovation within blockchain ecosystems presents significant challenges, yet some initiatives shine brightly. Project Catalyst stands out as a prime example, having fueled over 2,100 projects with more than $150 million, a clear testament to Cardano's dedication to decentralized innovation. Still, persistent hurdles across all ecosystems underscore the need for continued refinement in funding approaches.

The five critical challenges in blockchain ecosystem innovation funding: concentrated voter power, treasury fund limitations, inadequate impact reporting, uncertain ROI, and inefficient milestone management.

### Project Solution

The Extended Quadratic Funding model doesn't replace Project Catalyst but complements it, bringing additional funding, greater participation, and enhanced accountability to Cardano's innovation ecosystem.

We propose a complementary funding mechanism that addresses these challenges through a combination of innovative approaches:

### 1. Democratizing Decision-Making

Our extended quadratic funding model calculates voting power using two factors:

1. **Square root of donation amount** (e.g., $9 donation = 3 votes)

2. **Logarithmic reputation score** (Impact Score) ranging from 300-850

This approach balances financial contribution with proven community impact, preventing wealth concentration from dominating decisions while maintaining skin-in-the-game principles.

To protect this system's integrity, we implement:

- **Sybil resistance:** Zero-knowledge proof KYC via Hyperledger Identus (formerly Atala PRISM) ensures one-human-one-account without compromising privacy

- **Anti-collusion measures:**

- Reputation incentives that make system integrity valuable to high-impact participants

- Penalties including reputation loss or platform bans for collusion attempts

- Economic disincentives through fee structures that make vote-splitting unprofitable

- Use [Connection-Oriented Cluster Matching](https://www.gitcoin.co/blog/leveling-the-field-how-connection-oriented-cluster-matching-strengthens-quadratic-funding)

For more information on formal proofs of quadratic voting and literature reviews, see [Kovalchuk et al. 2024](https://drive.google.com/file/d/1hq_P_BEvXDhJcph6zmA0_CQHTcO0lyAZ/view?usp=sharing), [Ostrom 2010](https://drive.google.com/file/d/1Ej30QuyfcyCjNABd6O6S3MEk5Dy14WyL/view?usp=sharing), [Lalley and Weyl 2015](https://drive.google.com/file/d/1EjZoN4Gcxjwb0Va0OuRgEgBYRVcgDiWI/view?usp=drive_link) and [Poster and Weyl 2019](https://drive.google.com/file/d/1E_tXBhMIO6WLeVVpv3J_AsicTiSKAUze/view?usp=drive_link)

### 2. Multiplying Treasury Impact

Our model transforms the treasury from sole funder to catalyst:

- Individual donors contribute alongside treasury funds, potentially increasing available capital by 50%+

- U.S. donors benefit from 501(c)(3) tax deductions, creating unique incentives outside the crypto ecosystem

- Donations increase projects' chances of receiving matching funds, aligning individual and ecosystem interests

**Example:** A $1M treasury allocation could attract $500K in individual donations, yielding $1.5M total funding while building broader community investment. Please see more details in the "Why this amount" section below.

### 3. Standardized Impact Reporting

All funded projects must:

- Contract with designated impact accountants (funded from project allocation)

- Report standardized metrics including:

- On-chain transactions generated

- New wallets created

- Active users acquired

- Other ecosystem growth indicators

This creates the first comprehensive dataset of innovation ROI within the Cardano ecosystem.

### 4. Sustainable Value Capture

We establish a voluntary contribution system where funded projects share value with the ecosystem through:

- Equity stakes

- Token allocations

- Revenue sharing agreements

- Carbon credits or other generated assets

Our target is a 5% annual return within 10 years---an ambitious but achievable goal based on startup ecosystem standards.

The most reliable measure of VC fund returns comes from the Cambridge Associates US Venture Capital Index, which shows an 8.5% annual return over 10 years as of December 31, 2023. While this net return to limited partners reflects the overall pooled performance, typical median returns are lower, around 4-5%, due to the skewed distribution of returns.

Sources:

- [Cambridge Associates US PE/VC Benchmark Commentary Calendar Year 2023](https://www.cambridgeassociates.com/insight/us-pe-vc-benchmark-commentary-calendar-year-2023/)

- [Seraf-Investor.com Dividing the Pie: How Venture Fund Economics Work Part II](http://seraf-investor.com)

- [Emmanuel Maggiori Venture Capital Returns: True Lies?](https://emaggiori.com/venture-capital-returns/)

- [Founder Equity Fund The New Reality of Venture Capital](https://founderequity.com/the-new-reality-of-venture-capital)

- [British Business Bank UK Venture Capital Financial Returns 2024](https://www.british-business-bank.co.uk/about/research-and-publications/uk-venture-capital-financial-returns-2024)

- [EY Q2 2023 Venture Capital Investment Trends](https://www.ey.com/en_us/insights/growth/q2-2023-venture-capital-investment-trends)

- [Jumpstart Magazine How Long Until a VC Makes Returns?](https://www.jumpstartmag.com/how-long-until-a-vc-makes-returns/)

- [Cambridge Associates WEB-2020-Q2-USVC-Benchmark-Book](https://www.cambridgeassociates.com/wp-content/uploads/2020/11/WEB-2020-Q2-USVC-Benchmark-Book.pdf)

### 5. Efficient Milestone Management

Our streamlined process features:

- Token incentives for prompt reviewer decisions

- Financial penalties for reviewers whose decisions are overturned

- Decentralized dispute resolution mechanism (detailed at: [https://socious.gitbook.io/whitepaper/decentralized-dispute-resolution](https://socious.gitbook.io/whitepaper/decentralized-dispute-resolution))

This creates a self-balancing system encouraging both speed and accuracy.

This is particularly beneficial for teams seeking small amounts of funding, who often struggle with Catalyst's lengthy milestone approval process.

### Vendor Profile

Our team is uniquely qualified to deliver this project successfully. We have the expertise and capabilities to execute with the highest standards of trust and accountability.

Our extensive experience spans Project Catalyst, Singularity Net Community's Deep Funding, and GitCoin. Working with these innovation funding platforms has given us valuable insights into improving funding mechanisms.

We bring deep expertise in Hyperledger Identus, having developed an enterprise-grade self-sovereign identity system currently used by 13 universities. We are also active contributors to the Hyperledger Identus open-source repository.

Socious is a fast-growing impact startup backed by 500Global, Microsoft, Amazon, and Google. Our team brings together experts in impact measurement, legal, finance, data science, design, and blockchain development.

We have 12 full-time members and 20+ part-time contributors. Our team members include:


**Seira Yun**

Title: Founder and CEO

Role: Product Ownership, Project Management, Research

Linkedin:

[https://www.linkedin.com/in/seirayun/](https://www.linkedin.com/in/seirayun/)

Bio:

Seira Yun is a Cardano Ambassador and an ICC member. He is a serial impact entrepreneur and an impact angel investor with years of experience in the impact sector, leading teams within the ICRC, UNHCR, and social ventures. As a full-stack developer with a Master's degree in Social Innovation from the University of Cambridge, Seira enjoys blending technology with purpose. Upon exiting his first social venture in 2021, he founded Socious, a decentralized talent marketplace that uses blockchain for verified certificates and AI for matching individuals to meaningful jobs, eliminating background checks and fostering social and environmental change. He is also a board member at TELL, a suicide prevention non-profit. When not working, you can find Seira shooting hoops, running, reading, and spending quality time with his kids.


**Chrisanne Yee**

Title: Chief of Staff

Role: Project Management Assistant, Admin and Finance.

LinkedIn:

[https://www.linkedin.com/in/chrisanneyee/](https://www.linkedin.com/in/chrisanneyee/)

Bio:

Chrisanne is trilingual in English, Chinese and Japanese. She has experience with marketing and business development. Chrisanne is an active Cardano community member and serves as an alternate to the Constitutional Convention in Argentina.


**Taichi Yokoyama**

Title: Head of Events

Role: Event management

LinkedIn:

[https://www.linkedin.com/in/mryokoyama/](https://www.linkedin.com/in/mryokoyama/)

Bio:

Taichi is an entrepreneur and a Cardano Stake Pool Operator (AIRX). Taichi is an active Cardano community member and serves as a delegate to the Constitutional Convention in Argentina.


**Ehsan Mahmoudi**

Title: Lead Developer

Role: Backend/Blockchain/AI Engineering

LinkedIn:

[https://linkedin.com/in/ehsan-mahmoudi-611123b8/](https://linkedin.com/in/ehsan-mahmoudi-611123b8/)

Bio: More than 8 years of experience in Python and Machine Learning as well as extensive experience in blockchain development. Ehsan has worked for global startups including Rechat, AEC, and Navaak. Ehsan is a Cardano community member for the past 3 years.


**Sanaz Mahmoudi**

Title: Senior Frontend Developer

Role: Frontend Development

LinkedIn:

[https://www.linkedin.com/in/sanaz-mahmoudi/](https://www.linkedin.com/in/sanaz-mahmoudi/)

Bio: An experienced frontend developer with 7+ years of experience. Sanaz is a Cardano community member for the past 2 years.

**Mohammad Balkhani**

Title: Software Engineer

Role: Backend and DevOps Engineering

Commitment: Full-time

LinkedIn:

[https://www.linkedin.com/in/mohammad-hosein-balkhani/](https://www.linkedin.com/in/mohammad-hosein-balkhani/)

Bio: An experienced software engineer with 7+ years of experience. Mohammad is a Cardano community member for the past year.

To supplement our core team, we maintain a reserve of skilled freelancers, ready to contribute at short notice. Our talent marketplace, Socious, is a hub for over 12,000 individuals, many of whom could potentially assist in this project, if required.

The trustworthiness in our fund management processes is grounded in our serious adherence to legal and financial compliance. Each transaction conducted is meticulously documented with tangible evidence and audited internally for accuracy. To bolster our commitment to financial transparency, we have established collaborations with external accounting firms that assure compliance. We work with ([Tatsumi Accounting Firm](https://kessan-online.jp/company)) and ([BBCIncorp](https://bbcincorp.com/offshore/accounting-and-auditing)).

Additionally, we liaise with an external law firm,([Enlighten Law Group](https://www.enlightenlaw.com/)), to ensure full legal compliance. This meticulous, multilayered approach to fund management reflects our dedication to maintaining high levels of trust and accountability.

### Contract Management

A written off-chain Legal Contract will be created between the Vendor and the Cardano Development Holdings (CDH), as mandated by the constitution, and will be administered by Intersect. This will include details of the project delivery schedule and dispute resolution.

### Project Delivery

All milestones, acceptance criteria, payment amounts and expected delivery dates will be agreed between the Vendor and Intersect, acting on behalf of the CDH. The vendor will deliver according to the agreed-upon project schedule within the Legal Contract, of which the necessary information will be made public via the budget management platform via transaction metadata.

Defined by the milestones within a Legal Contract, the vendor will submit and attest milestone acceptance to the community, Intersect or 3rd Party Assurer.

Project progress will be monitored via Intersect's delivery assurance function which will be communicated to the community.

Acceptance of the above work is expected to be supported by a 3rd Party Assurer, who will be responsible for reviewing and signing off the work completed at each project milestone against the corresponding milestone deliverables detailed within the Legal Contract. This work is funded from a portion of this treasury withdrawal.

### Budget Management Tooling

To administrate treasury funds on-chain, Intersect will utilize the treasury management smart contract framework developed by Sundae Labs. The smart contracts have been [extensively tested](https://github.com/SundaeSwap-finance/treasury-contracts/tree/main/offchain/tests) including audits from TxPipe and MLabs. Examples of the usage of these contracts can be seen across mainnet described across Intersect authored [Blog 1](https://www.intersectmbo.org/news/smart-contract-mainnet-demo-a-step-toward-on-chain-treasury-withdrawals), [Blog 2](https://www.intersectmbo.org/news/smart-contract-mainnet-demo-day-two-update) and [Blog 3](https://www.intersectmbo.org/news/smart-contract-mainnet-demo-day-three-update).

Final mainnet validation test can be seen via the Disburse action within transaction: 0f591dc544ae14102dbb4a74d5311a6acffc1772b163d8b7a9656b9525950b17

With the confirmed treasury reserve contract address being: stake17xzc8pt7fgf0lc0x7eq6z7z6puhsxmzktna7dluahrj6g6ghh5qjr

#### Specifics

Intersect will utilize a single Treasury Reserve Smart Contract (TRSC), with many Project-Specific Smart Contracts (PSSC), managed by Intersect. Intersect's management consists of three 'admin' and two Intersect 'leadership' roles. An Oversight Committee consisting of five external, independent third-party entities will provide checks and balances on Intersect, and safeguard against errors and unilateral control. The administration of both TRSC and PSSCs will be managed by Intersect, with external oversight on certain actions from the Oversight Committee.

The Oversight Committee consists of Sundae Labs, Cardano Foundation, Dquadrant, Xerberus and NMKR. Their role is to independently verify key administrative actions using on-chain logic, ensuring accuracy and consistency without exercising discretion over governance decisions.

For all details on Intersect's configuration please see the **[Smart Contract Guide](https://docs.intersectmbo.org/cardano-facilitation-services/cardano-budget/intersect-administration-services/smart-contracts-as-part-of-our-administration)** on the knowledgebase.

The high level permissions are as follows:

- TRSC Fund and PSSC Modify

- Two of the three Intersect admins, two of the five trusted entities and one of the two Intersect leadership sign-off must authorize

- TRSC Disperse

- Two of three Intersect admins, three of five trusted entities and two of two Intersect leadership sign-off must authorize

- TRSC Pause and Resume

- Two of three Intersect admins, and one of two Intersect leadership sign-off must authorize

- TRSC Sweep

- One of three Intersect admins, and one of two Intersect leadership sign-off must authorize

- TRSC Reorganize

- Two of three Intersect admins and three of five trusted entities must authorize

#### Processes

Upon enactment of this governance action, funding for this project will be directed into the TRSC's stake account. All instances of TRSC and PSSC can not be staked with a SPO and will be delegated to the auto-abstain predefined DRep. From here funds will be withdrawn into a UTxO remaining at the TRSC.

When the Legal contract is prepared and the vendor is ready, funding for this project will be transferred using the Fund action to a PSSC. All milestones will be outlined within the metadata.

A dashboard will be available for the community to audit the TRSC or PSSC and track metrics related to this withdrawn ada as well as being immutably verifiable on chain.

The subsections; Contract Management, Project Delivery, and Budget Management Tooling described above cover the constitutional requirements specified in Article IV section 4 and 5.