Kado Community Funds Proposal

Kado Community Funds Proposal :rocket:

:exclamation: Update 06/15/2021

After reviewing feedback from the community and fellow builders, we’ve made a few updates to our proposal. A 2nd version was always part of the plan as we’ve brought this to the community to collect feedback - the positive and negative. We’ve laid this out above the initial proposal so as to have a central source of information going forward.

A few key updates first:

:wave: We’ve updated our name to simply “Kado”, and will be dropping Terra from the name. We have had good support from the community to make this change and do so happily - “Terra” will be in and around us regardless, and our new slogan is: “The UST - USD Gateway. Where TradFi and DeFi worlds collide.” We launched our teaser site @ kado.money :wave:.

:family_man_woman_boy: We’ve added 3 new mentors to our team. Builders and supporters have been reaching out to help and we love it - if you think you can help, hit us up! We’ve added:

  • SJ Park, Head of Special Projects - Terraform Labs
  • Jason Wang, Startups - Founder Caviar (acquired), Founding Partner Beluga Capital
  • Chris Amani, Startups - SVP Finance, Strategy ex-MongoDB, ex-Electronic Arts, CEO Humanity (acquired)
  • A few more are in the works & will be announced at a later date.

We’re super excited to have a Terraform Labs team member join our ranks and in his own words “if you weren’t building this, I would have to.”

:bookmark_tabs: We’ve acquired an LOI (Letter of Intent) from PrimeTrust. See here. Working with PrimeTrust enables us to avoid much of the legal overhead, including not requiring a NY Bitlicense or other state-specific charters. Along with this, we’ve finalized our Delaware C Corp registration as “Kado Software, Inc.”.

:point_right: We’ve addressed some FUD and mistrust with our business Twitter handle and apologize for any loss here - we joined the Terra Bites podcast to chat about this and the future of Kado here. We condemn these actions and will work hard to earn your trust back.

:rocket: Builders have been reaching out in hordes with 2-3 conversations about the power an off-ramp can bring to solutions in the TradTeFi world - we look forward to talking with more of you in the coming weeks (we’re easily reachable now in our new Telegram Group).


A few edits have been made to the below proposal, demarcated in large quote blocks with “EDIT:” for easy viewing. We’ve updated “Terra Kado” => “Kado” throughout the proposal and our cost outline remains the same.

:point_right: Overview

Kado will create new opportunities within the Terra ecosystem. We started this project out of an abundance of necessity - we live in New York, Los Angeles, and Boston and are unable to spend UST in our daily lives. If the stablecoin and “programmable” dollar is to be a reality, a few more steps need to exist.

Kado’s first goal is to launch Kado Pay - tldr; Honey for UST Payments. The simplest way to swap gift cards seamlessly for UST. Our initial focus is providing US-based customers with Chai-like services through the Terra ecosystem.

Ultimately, we plan to empower suites of solutions powered by our seamless on/off-ramp capabilities that render new ways to benefit from the Terra ecosystem. Once we finalize our off-ramp partnership (PrimeTrust UST <> USD swap), there will be endless opportunities to build more dApp solutions and demand for UST.

Finalizing our core Kado on/off-ramp and launching Kado Pay will be our v1. We plan to launch Kado Pay before beginning any further initiatives. Over time, many exciting protocols will and currently are being built to bring new users into the Terra ecosystem, with use cases they never thought possible in TradFi. Kado will create a positive feedback loop, rewarding all onboarded Terra users to then be able to spend their UST on real-world purchases, making UST that much more useful. More users + more useful money…we all know what happens when more UST is minted :wink:

:robot: About Kado

Our goal is to be able to spend and transact in UST, and we plan to get there in record speed. We need to move quickly as our plan, to live off UST, is one our peers and community members resonate with. We are servants to the mission of Terra Money, and it is our goal to help UST fulfill the full stack of services that a currency ought to. Everything Kado will do is aimed to ultimately increase the sustained demand for Terra stablecoins.

We started Kado in mid-April, about three weeks before the Hackathon. Today, we’re asking for your support in building the next set of payment solution applications, the first of which will be Kado Pay. Over the last month we’ve turned exploratory conversations into an MVP and found new team members along the way. The Kado team consists of 4 members, which started as 2 before the Hackathon. We are:

  • Product, Development - Emery (@CryptoMory)
  • Development, DevOps - Max (@CoinOnTheCob)
  • Business Development, Customer Relations - Vince (@YungCoiner)
  • Marketing, Media, Content - Matthew (@CryptoMeaty)

EDIT: We added links to our LinkedIn’s below in this thread, but for ease here that info is:

:books: How We Got Here

Kado will enable US based customers a similar experience to Chai, through e-commerce payment facilitation and management. We’ve done a lot of research to get here, including:

  • Conversations with every on/off-ramp on the Terra Lumen chart; findings are that most do not include an “off-ramp”, which is the necessary component - PrimeTrust will be this, but from our recent call on 5/21, they are still working on UST integration.
  • Discussions with Do Kwon and TFL to validate our product-market needs and gather Chai alpha.
  • Participated in the Delphi DeFi Hackathon, where we found others’ desire for these solutions and affirmation that we’re onto something. We received runner up in the contest.

EDIT: A user @flipside pointed out our wording was incorrect here. We did not receive runner up. We received a special mention from Luke @ Delphi and did not win any awards in the Delphi hackathon.

  • Conversation with other projects in the Terra ecosystem including Alice, ApolloDAO, Angel Protocol, Orion Money, LocalTerra, and many other great projects (we’d like to connect with all of you)!
  • Built our demo MVP of the Kado Pay Web App and Kado Pay Chrome Extension, with a focus on a single merchant: Amazon.
  • Here is a link to our Kado Web App MVP demo.
  • Here is a link to our Kado Chrome Extension demo.

:space_invader: Goals

Our immediate goals are to (v1):

  • Finalize the PrimeTrust integration. Bridging the gap to TradFi will enable Kado Pay and includes a 1-month integration testing period with PrimeTrust’s team.
  • Get Kado Pay in everyday users hands - purchases on Amazon to start, though our catalog of providers includes 250+ more merchants.

Our next goals are to (v2/v3 - post v1 Kado Pay launch):

EDIT: Our goal after launching v1 Kado Pay is to kick-off Kado for Builders initiatives immediately, building tools and solutions for Terra builders that need connectivity to on/off-ramp capabilities.

  • Service businesses and dApps in the Terra ecosystem, providing on/off-ramp capabilities to other integrators. There’s no reason we all need to integrate directly with PrimeTrust if we can provide that to you and your dApp.
  • Build out more payment solutions that can benefit from Anchor and Terra - subscriptions, rent payments / escrow financing, and many more.
  • And one of the most important - Terra Cards - making payments even easier.

:alarm_clock: Why Now?

UST demand is set to grow, and our goal is to enable US-based customers to benefit from the Terra ecosystem, further growing UST demand. We’re still early to the adoption of LUNA and especially to Terra x USA. But, we want to live off UST today. We know that more apps will want to build on Terra in the coming months/years.

We want to make available our seamless TradFi <> DeFi on/off-ramp to enable the next wave of yield-paying applications that you can already start to imagine. Building this bridge will power this next set of Terra dApps.

EDIT: We have now coined the term “TradTeFi” for Traditional Terra Finance, which speaks to our core efforts to bridge the TradFi <> DeFi worlds.

:chart_with_upwards_trend: How is Kado different?

Our first and foremost goal is to serve Terra crypto-natives with US-based solutions and dApp builders, as they live and build in the Terra ecosystem. We want to supply existing crypto users with another great reason as to why they should be picking UST over other stablecoins. If you can trade stocks, save, provide liquidity, and borrow in an ecosystem founded on currency - we believe you should also be able to buy dog food, diapers, and vegetables with that same currency - without ever leaving the ecosystem.

On top of this, we aim to serve existing dApp builders, like PayWithTerra who could seamlessly enable UST to USD conversion for their e-commerce customers (hello 20% APY for merchants… everywhere?). Or Delphi Digital, who plan to collect their subscription revenue with Suberra Protocol, which they accept as UST, and with Kado could convert to USD when necessary.

Products like Alice (with a focus on P2P money and savings) and Saturn Money (similar to our efforts but with an UK/EU focus) are fantastic, with goals of on-boarding more dollars into the Terra ecosystem vacuum. We want to differentiate by enabling and creating new opportunities for Terra builders. To this end, with a huge focus of ours on servicing other Terra dApps, we want to make it easier for new projects to build using our on/off-ramp, with the lowest possible friction. Kado will help power the next generation of USA / UST applications.

:raising_hand_man: Ask

We want to raise 21,000 LUNA ($126,000 UST @ $6 LUNA) from the Community Fund. We know that a majority of this will shortly be moved to fund Ozone, which we fully support, and would love the community’s support in bootstrapping another project to drive further adoption of UST. We want to empower growth of the Terra ecosystem. These funds will not pay any salaries.

EDIT: We have acquired a LOI from PrimeTrust for $5,000.00 - see here - the remaining outstanding integrator fee is $20,000.00 USD.

The PrimeTrust integration is our largest cost - a $25,000.00 setup fee and monthly $2,000.00 - $10,000.00 costs. Fortunately, we have enough shekels to focus on this full-time and not pay ourselves in the immediate term. We plan to use all community funds here to bootstrap our integration with PrimeTrust and offer reduced fees to our customers in the early days. As a bootstrapped project, we will rely on minimal (the lowest possible) fees to service you, but must account for some costs such as our hosting/servers, third-party vendors (PrimeTrust, Gift Card Vendor(s)), and a few areas we’d like to support (Audit/Security and UI/UX/Design).

You guys are our seed investors, and it will be our fiduciary responsibility to execute on this project to the best of our abilities. Our incentive is to build this into something valuable, and your incentive to fund it is that if we are successful, Kado will be a sustained driving force for UST demand and Terra ecosystem services.


Monthly Costs

Vendor Costs - PrimeTrust

- $25,000.00 setup fee
- $5,000.00 / month
- KYC Fees

~12 months = $25,000.00 + ($6,000 * 12)
= $97,000.00

Vendor Costs - Gift Cards

$500.00 to $1,500.00/month

~12 months = ($1,000.00 * 12)
= $12,000.00

Hosting / Servers / CDN

$120.00 to $180.00 / month to start.
Will turn into $400.00 to $600.00/month in the next ~3 months.

~12 months = ($240.00 * 12)
= $3,000.00

Hard, Finite Costs

Legal and Security Review Costs

Post-build security and audit review of our code.

= $4,000.00

Design Costs

We do lack some UI/UX experience - any Terra-loving designers out there, hit us up!

= $10,000.00


21000 LUNA @ $6.00

= ~$126,000.00

Leave a comment or question below and thank you for reading - to the :waning_gibbous_moon: we go!


This is incredible news, guys–especially the offramp! Normies will never trust UST if they can’t get their USD back when they want to, and so far Crypto is a one-way funnel it seems.

Looking forward to supporting this!


Reviewing this document I note the $4,000 for legal and security review costs.

Do you think more is needed to explore and ensure regulatory compliance in the United States?

Have your team been in discussion with CHAI as to how to optimise your card system?


Very good questions.

We have kindly been offered audit/reviews from TFL after chatting with them, so this helped us to lower this cost. We also have accounted for some legal costs through our integration phase with PrimeTrust. On top of this, we’ve done some legwork prior to this proposal - the last 1-1.5mo have included risk assessments, reviews, etc. If more are needed, we will secure those funds.

We have followed in Chai’s footsteps for some time but no formal, finalized optimizations yet - we need to build a few more rails before this is fully possible (then, scale helps). We plan to be there lobbying for it.


Fund it!

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+1 Fund it!

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Definitely fund this project. Great idea, well laid out plan.

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I would like to buy dog food, diapers, and vegetables with UST.

Doesn’t sit right with me that he deletes his tweets after saying he’s all “full transparency” then comes back out requesting new money which could be used for more honest endeavors.

I sought the opportunity for him to clear the air and restore confidence.
He censored my tweets.

It was funny until it wasn’t, huh… Let’s just sweep it under the rug?


Investor Peter Lynch said to be weary of those who use the myth “it’s always darkest before the dawn,” as “it’s always darkest before pitch black.”

I figure people need reminding.


Anyway community funds must never be used to kickstart projects from obscure anonymous twitter accounts


I agree with this. I looked up the members of Terra Kado on twitter. Doesn’t quite shout out confidence. Community funds shouldn’t be given out for personal projects. If you need funds, then find an investor. Isn’t that how terra got started, by showing their value to institutional investors to obtain funding?

In a similar vein, is this why right now dot>terra, because of their future ability to crowd-loan projects without ever given up your coins??

Of course, I could be wrong about all of this, but that is my understanding of it right now.


yes, totally agree, if not this will be abused, many people will just come out with fancy powerpoint to get the funds, once gotten then just disappear, just like the ICO era. It’s best if fund can be disburse progressively base on actual delivery.

  1. Please share the LinkedIn profiles of the team members.
  2. The video shows that you will be charging a $2.50 sign-up fee and $1+1% on every transaction. How will this revenue be used? Why didn’t you include it in the proposal above?
  3. How does the team plan to make money from the project?
  4. What exactly are you paying PrimeTrust for?
  5. How did you arrive at the figure of 10,000 for the UI/UX developer?
  6. Could you break down the cost of the cards?
  7. Will all development be in a public GitHub repository? What will the license be?
  8. There’s a huge difference between creating an app that can buy Amazon gift cards and issuing a Mastercard debit card. Can you say more about how you intend to achieve the latter?



I would like to see more public info about the team because this project involves users handing over sensitive KYC data


I would also like to see all the asked for details from “flipside” before I can make an informed vote. Please address these, thank you

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Quite a shill, @madman - we take this very seriously, and the degen social handler has been forth-coming with his personal issues. We are sorry his actions spoke to you in this way. The recent rugging across Crypto caused life-changing situations, one that he regrets using this Twitter account for. For losing your trust, we are sorry. But, the LUNA community is strong, and he actually received help - I never worry when working amongst the LUNA community. No liquidations occurred, thankfully.

Please see more here: https://twitter.com/CryptoMeaty/status/1400041205308833793


Hi @flipside :wave:, thank you for the thorough questions.

  1. Team member doxing, at your service (new Twitter thread :thread:- https://twitter.com/terrakadopay/status/1400092942027608064)
  • Emery, Product, Lead - startups, tech, teams - https://tinyurl.com/xtcsvh37
  • Vince, Global Business Development - hails from MasterCard - https://tinyurl.com/3xs72xns
  • Max, DevOps/Backend - engineering team lead dev - https://tinyurl.com/jvezz8bz
  • Matthew, Content, Socials - startups and degen - https://tinyurl.com/8xhx28yd
    • ^ We apologize for his bLUNA/Anchor issues, and he has learned from such experiences. This will never happen again. We are truly sorry. The man did not get liquidated, thankfully, and this would not have been possible if not for a strong LUNAtic community.
  1. This was a demo fee for explanatory purposes and will change over time. The one-time sign-up fee includes the KYC fee cost ($2.50), and the $1 + 1% is our way of collecting revenue for further project development, paying hosting fees, and mitigating PrimeTrust costs. These will go down over time as we scale. We did not include it in the proposal above as it is subject to change (ex: we are tinkering with the idea to spin up a validator - this would reduce the above / previously mentioned fees).

  2. We do not intend to make money from the project in the short term. We are builders not with a focus on profits at this time, rather looking to provide value to the community and Terra’s efforts in the USA. Minimal fees ($1 + 1% / validator, staking tiers, and future B2B revenue / efforts will formalize when we get there). Our goal is an as low as possible / no-fee model. Easier said than done, but we are also committed to the Angel Protocol Alliance and intend for a portion of our fees to direct to their efforts.

  3. PrimeTrust will be paid as the core TradFi partner in our system, and all of the fees outlined for PrimeTrust above ($25k + 2-10k / month) are simply the terms anyone would pay to start working with them. This includes using their services outright.

  4. This figure of $10k for UI/UX/Design is estimated from $50 per hour * 200 hours, spread across landing website, webapp, and chrome extension, along with some buffer for future projects. If any LUNA loving designers are out there, our DMs are open.

  5. Our Gift Card vendors’ services require fees themselves to run, which range from 2 - 5% on most transactions (ACH transfers). As we scale, this will also be reduced.

  6. All development will be done in private repos until audit and approval from TFL. There will be private keys involved so this is the biggest concern, however, we intend to release public and private repos for different pieces (much like TFL).

  7. There is definitely a huge difference and our gift card approach is the simplest, quickest go-to-market. It’s the same reason eco.com ($26m in funding) or foldapp.com ($16m in funding) offer gift cards initially - build a user base and then offer them more services. Did I mention one of our team members works at MasterCard? We are building those relationships as we speak.

@liquidity_king - to your point about handing over sensitive KYC data - this data will never touch our servers. Similar to Stripe integrations, PrimeTrust manages all sensitive data and as such takes on the liability. This is an :key:understanding of how our business approaches this function.

Thank you for the questions - we welcome them all with open arms.


We look for ways to uplift one another, especially in the darkest times. Rest assured, the damage has clearly been done, and he has learned from this experience along with a number of internal steps now put between one individual’s abilities <> Twitter.

If this is your only takeaway, you are not here for what is to come.

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Thanks for the responses. :pray:

Thanks for the links. Is it fair to say that prior to the Hackathon none of you had blockchain experience?

But these are precisely the fees you are asking the community to pay. You will have two sources of income to pay the same set of fees. I don’t see how you could fail to mention that in the proposal.

Call me cynical, but the primary motive for people embarking on ventures like this is not usually to help the community. It’s to make money. Would you agree?

It’s still not clear what you are paying them for. What do they give you in return for $97,000?

You’re budgeting $12,000, so at between 2-5% you’re expecting them to handle transactions of between $240,000 and $600,000. How did you arrive at that figure?

Why develop in private repositories? How does this square with the idea that you’re doing this for the community, not for yourselves? Would you agree that you’re asking the community to give you money to develop a project over which you will have total ownership?

So the way I see it, a couple of guys with no real track record came together for a hackathon 6 weeks ago. They’ve since been joined by two more. Now they’re asking the community for $100k+. It’s not a project I want to back, but it would be great if you go it alone and prove me completely wrong. It sounds as though you’re expecting significant cash flow very quickly, so it might even turn out to be self-funding.


Hi @flipside, thanks again for your contributions to the thread.

We have tinkered with smart contracts in the past but have not launched any blockchain projects in the wild yet. Making the decision to build on Terra was a no-brainer. We have worked closely with Delphi and TerraForm Labs on plugging in areas of expertise that we lack. We will continue to use them as resources as necessary.

Again these fees in our demo were and are a work in progress. A lot of this comes down to our monthly spend with PrimeTrust. If fees can be covered by community funding solely, we intend to rely solely on that. If not, we will be required to charge the bootstrapped fees. I think you can see how limiting that might be. Pricing - WIP. Let us know what you’d like to see!

It’s okay for you to see it from your own angle, however, our personal motivation in starting Terra Kado is to spend our UST in our daily lives. Right now, that’s not possible. If we can make it work for the community, with the lowest costs possible, that’s our goal. Cynicism is welcomed, and will be crushed with kindness and execution.

These funds will pay for PrimeTrust’s services. This includes API integrator functionality, UST<>USD swap capability, and most important: the burden of sensitive, KYC data. All of these costs are outlined on their website. $25,000.00 setup and integration fee, with a sliding $2k - $10k depending on scale. We have nothing to hide here :grinning_face_with_smiling_eyes:.

Our aim is for this to satisfy our initial launch - $250k to $350k in Gift Card balance @ 2 - 5%.

As mentioned, we’ll progressively role repositories out that are public-facing and internal-only facing, to secure audit approval and such before doing so. Due to connecting systems to PrimeTrust and 3rd party integrations, there is a much higher potential for abuse, and ultimately must be accounted for. Safety and customer protection is the primary concern. Wen Alice public repos? Not saying they are community funded (though, they are looking to integrate TradFi as well).

We are moving fast, ser! How long have we been hearing about all of the airdrops coming? How about an actual solution to the USD <> UST money function? We certainly can and will provide value to you, and the entire Terra community, as humanly fast as possible. We are doing this in a transparent manner, with maybe too much engagement, but see so much value to still be brought to this ecosystem. For reference, the community fund sits at 67m LUNA (our ask: 0.0328% of this), even at 5m LUNA (after Ozone funding), we’re looking at 0.44%. Small ask, big reward.