5 The Mission

In order to provide a low barrier entry point and ensure a fast and secure product we need a stable protocol as basis. At the same time the Melon protocol needs users and popular applications running on top of it, to maintain traffic and incentivize people to its development and optimization.

While the Melonport team worked out complex technical challenges of setting up a decentralized fund management infrastructure, our team set off to build an interface that provides users with easy access to this infrastructure. On one side this means guaranteeing maximum usability (also for users unrelated to the fund management industry) and adding attractive functionalities. On the other side it means providing a safe legal framework for our users.

5.1 How we bring Value to the Melon Ecosystem

After the development and security auditing of the Melon protocol is completed, the Melon ecosystem is depending on one key element: usage. Our mission is to create a captivating mobile UX and gamification mechanics around Melon in order to drive user adoption. All asset mixes on the Ash app are actually Melon funds on Ethereum. This creates a direct link between the app’s usage and the Melon Engine. Usage of Ash should increase MLN burn rate and thereby contribute to the MLN purchasing power (detailed information about the Melon Engine and MLN deflation in Melonomics II). The key elements of Ash that enhance Melon are namely:

Mobile Interface

To lower the entry barrier to the Melon protocol we created an easy to use mobile interface on top of the protocol, which includes a service layer for a seamless user experience.

Tracking and Notifications

When a user invests in a mix, Ash automatically tracks actions of that mix and notifies the user when trades are conducted. This way, users always stay on top of what’s happening on the market and with their money.

Competition

Competition between managers weed out bad funds and highlight the best performing funds. This way, inexperienced users can rely on top-ranked funds and profit from their strategy.

Rewards pool

The rewards pool incentivizes users to steadily improve their performances. The competition and level system auto-pays the best fund managers on the platform with the collected fees from the rewards pool.

Fiat payment integration

A key point is lowering entry barriers for new users by providing simple ways to stack a fund with fiat. This eliminates the need to operate a wallet, own crypto or even know much about it before creating an asset mix on Ash.

Impact investing

Giveth is re-engineering charitable giving, by creating a free, open-source platform, built on Ethereum. Integrating Giveth into Ash enables every user to connect their fund to a charity or NGO and transform it into an impact investment fund.

Prediction Markets

Providing users with the possibility to create prediction markets through Ash and hold PM positions in their mixes, we give users the power to create their very own asset classes. Apart from markets on politics, economy or sports, users can create predictions on challenges between Ash users and thereby intensify the gamification experience.

5.2 What we did so far

5.2.1 Incorporation and Funding

The concept development of Ash started back in February 2017. We incorporated in Switzerland and hired renowned law firm MME to help us being compliant with Swiss regulations. We participated in the M-0 Conference in Zug in October 2017 where our CEO Adrian presented our vision for Melon on mobile for the first time.

Finally in early 2018, our team was joined by advisors Mona El Isa (Melonport AG), Reto Trinkler (Trinkler Software AG) and Thomas Linder (MME). We began to foster collaborations with other projects like Gnosis and Giveth and built “eazyX”, an interface to the DutchX decentralized exchange.

We have always been critical about means to an end token models which result in unnecessary utilities. Especially when we saw how the ICO market took off and projects raised millions without any due diligence or serious attempt to actually deliver. Due to regulatory uncertainty we postponed our ICO/TGE for a revenue-sharing security token multiple times and are privately funded since day one.

With the introduction of Melonomics we can apply for a reasonable funding opportunity that will hopefully be surpassed by the value that we contribute to the overall Melon network. Our proposal for a TAE thus is the next logical step in the creation of a product to push the Melon ecosystem forward.

5.2.2 Completed Development

The following overview shows the positions we have committed since November 2017 (time of incorporation) to realizing the first app on Melon. The technical development started during spring 2018 when the team was joined by our product designer and front-end developer. Apart from the core team, we worked with several freelancers during 2018.

By the time of this proposal the following elements have been completed:

Back-end

Continuous integration and deployment pipelines

Distributed microservices system

Fanout system

Persistence layer

In-memory data store

Ethereum logging and caching service

Infrastructure-as-code framework

Front-end

UX architecture

Design and development of the front end codebase

News feed

Asset mix management interface

Tinder-style swipe interaction to buy/sell assets

User/user challenges to compare fund performances

Challenge status pages

User profile

Asset mix profiles

Asset info pages

Gamified level system

Aggregated search for the decentralized exchange modules in Melon funds

User avatar qr code system for scan-to-challenge interaction

Wallet integration

Melon js integration to connect to Melon protocol on Kovan testnet

Preparation of closed Alpha Testing

A running test app on mobile that is connected to Melon on the Kovan testnet and allows testers to buy and sell assets and compete in challenges (Ash Alpha will be released shortly after the submission of this proposal)

Tester invitation list of around 150 individuals and reputable projects ❤

Preparation of Open Beta

Running on Kovan: you can sign up already! Please feel free to join and give us feedback — > Beta sign-up

5.3 Next Steps

5.3.1 Development

Beta Tournament

Running the Beta and performing ongoing iterations on the interface and service layer based on user feedback.

Fund-of-funds interface

A fund-of-funds structure allows a user to invest with her Melon fund in another user’s Melon fund, which again can invest in another Melon fund and so on. To provide this feature, a Melon fund needs to integrate a module that enables this kind of transaction.

Multi-Manager-Funds module

This module allows users to get together in groups to manage funds and invest in a joint endeavour. Depending on the settings of a MMF, decisions about investments are made via voting.

Fiat payments integration

To lower the entry barrier, for everyone with a smartphone to be able to operate their own investment fund on the blockchain we need to integrate fiat payment options. Connect a fiat payment method and create your asset mix. This will eliminate the need to set up an external wallet, buy crypto and send it to your mix.

Challenge module

In the Alpha, challenges between users’ asset mixes are handled completely in our back end. The next step is to create a module that handles challenges on-chain and sends a small fee to the rewards pool every time two users engage in a challenge.

XP Token

Since we will move our challenge system on-chain, we will also migrate the XP points for the level system on-chain in the form of an XP token. There will be no ICO for this token and we will airdrop it for free to every new signed-up user on our platform. We will not engage in any efforts to list this token on any exchange because it is purely to track the XP points of each user on-chain. The XP token will not have any functionality except that users stake it in challenges and keep track of their individual levels. All of this is automated and happens behind the scenes without the need for any user interaction. For the user this is simply her XP, it increases with won challenges and decreases with lost challenges.

Security audits

We cannot stress this enough: security is key! External security audits are the way to go.

Giveth module

To provide users with a simple way to transform their mix into an impact investment fund we need to integrate a module that enables connections of a Melon fund to the Giveth smart contracts, so users can browse through NGOs and charity projects, connect them to their mix and setup a one time donation or a standing order to create a true impact investment.

Research on Prediction Markets module

In order to provide our users with the possibility to create or engage in PMs we need to build a module that connects to a decentralized PM platform like Gnosis or Augur.

5.3.2 Legal

License and compliance

Melon is bleeding-edge technology. Existing regulations for the global asset management industry have difficulties to categorize technology-regulated solutions like Melon or applications running on top, like Ash. Due to the international fragmentation of regulations, we move forward in several steps, starting in one jurisdiction, to then expand from there.

Set up Ash with a social trading license in Liechtenstein which applies to all users within the European Union

Set up Ash with a social trading license in the UK that applies to all users within the United Kingdom

KYC/AML

In order to comply with Know-Your-Customer and Anti-Money-Laundering regulations we will integrate a KYC procedure that identifies every user before using Ash with real funds.

5.3.3 Community & Marketing

Events & Networking

Organizing workshops/hackathons and tournaments for the Ash community.

Rewards

MLN rewards for the first Beta sign-ups to secure a solid user number by time of the Beta launch.

Communications

Maintenance of social media channels like Twitter and Telegram, to inform users and create an appealing digital brand experience for the community. Ash Medium blog about development progress, important partnerships as well as open source activities.