Kado Community Funds Proposal 
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:
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 .
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.”
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.”.
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.
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.
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 
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:
- Emery Andrew (@KadoMory), Product, Lead - startups, tech, teams - https://tinyurl.com/xtcsvh37
- Vince Dowdle (@KadoVince), Global Business Development - hails from MasterCard - https://tinyurl.com/3xs72xns
- Max Batty (@Kado_Dev), DevOps/Backend - engineering team lead dev - https://tinyurl.com/jvezz8bz
- Matthew Maitland (@KadoMeaty), Content, Socials - startups and degen - https://tinyurl.com/8xhx28yd
- Updated Kado Money’s business Twitter presence and handle: @Kado_Money
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.
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.
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.
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.
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.
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Costs |
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Monthly Costs |
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Vendor Costs - PrimeTrust |
- $25,000.00 setup fee |
~12 months = $25,000.00 + ($6,000 * 12) |
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Vendor Costs - Gift Cards |
$500.00 to $1,500.00/month |
~12 months = ($1,000.00 * 12) |
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Hosting / Servers / CDN |
$120.00 to $180.00 / month to start. |
~12 months = ($240.00 * 12) |
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Hard, Finite Costs |
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Legal and Security Review Costs |
Post-build security and audit review of our code. |
= $4,000.00 |
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Design Costs |
We do lack some UI/UX experience - any Terra-loving designers out there, hit us up! |
= $10,000.00 |
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Total |
21000 LUNA @ $6.00 |
= ~$126,000.00 |
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we go!
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understanding of how our business approaches this function.
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