DSID 𑁍 — Makers of the one and only Solana ID ($SOLID application for LFG)

Intro

LFG Introductions proposal

Gm Cats, Kitties and everything in between!

We are on the naively ambitious mission to build an identity and reputation system for the internet that honours privacy for consumers while still providing enough data to service providers to make optimal decisions.

We have been sitting together one day in an uplifted mood and enhanced sensual experiences (if you know you know) and ended up talking about WHO we actually are in life. There is a philosophical and a societal answer to this question and I want to only dare to answer the latter: your identity resembles a collection of “attestations” given to you and acknowledged by society, starting from the moment you were born.

I was personally touched by the idea of building identity systems that are able to bring this definition to the broader internet and crypto brings many tools we can utilize to make it real.

We ventured on this journey one year ago, got incubated by a leading identity chain, took our learnings from this sandbox environment and are ready to build Solana ID by DSID.

Purr-ject Overview

Logging in with a non-human crypto wallet into an application won’t be the status quo in 5 years from now. We’re building advanced authentication flows for apps, preserving privacy while adding identification. Reputation and identity credentials linked to public-private-key wallet accounts are crucial to build a truly verifiable web and can be neatly carried around through the internet.

Honey is a rewards and discount browser extension that was bought by PayPal for $4bn - advertisement is one of the largest industries if not THE largest industry in the web. In crypto, we’re far from optimizing advertisement but we have so many options! Solana ID is building a platform for targeted ads that feel like perks!

:one: Users come to Solana ID for benefits, connecting their wallets and web2 accounts
:two: Our points program incentivizes for building a complete profile
:three: dApps integrate Solana ID to receive identity data whenever a user connects to their app
:four: They can now display tailored offers and discounts that make the user happy directly on their app or as ad banners with display partners.
:five: Customer acquisition cost in web3 is enormously high - with Solana ID, dApps cut it by half!
:six: Users earn points, get discounts and apps loyal users.

This is the Honey success secret - creating a win-win-win situation for all stakeholders! Genius!

We derive preliminary trust scores and ratings on wallets on the basis of on-chain activity that can be used to understand, filter and sort through sets of wallets such as your dApps’s customer base. But the best part: when users start to connect wallets to the Solana ID Hub and on-ramp off-chain credentials into their secure Vault, this data can be selectively shared with verifier. Better identities ALWAYS improve security, UX and FUN for all involved.

$SOLID Token Utility

The question of all questions is not WEN token, but WHY token. Utility is the main driver for token demand and token demand is the main driver for its price. So this question MUST be answered, at least on a high-level, in this proposal.

Keeping it simple, $SOLID does have but is not limited to two main utilities: Data-2-Earn (D2E) and Reputation Staking (RS).

  1. D2E: our protocol charges a fee to verifiers who would like to tap into underlying wallet data. As we’re following the Self-Sovereign Identity (SSI) ethos, we don’t just grant access to sensitive data in the DSID data vault; we ask the user for permission. That means: the protocol makes the most revenue, when a) users are open to share data and b) a lot of verifiers are querying data. To power this, a token incentive model is a perfect fit. Verifiers pay in $SOLID, value accrues on the protocol level BUT the largest chunk (70%) are sent back to the user. The more data you share, the more $SOLID you accrue.
  2. RS: real demand comes from what we call “Reputation Staking” - you can compare it to normal staking to secure a PoS network, with the difference that you’re securing your own reputation. The more $SOLID staked behind your trust scores, the more trust can be established between verifiers and yourself. This leads to “trustless” user experience with trust installed privately - your backing your word with financial value. Stake can get “slashed” if trust scores are “misused” by the user.

Starship Crew

In the founding team we have a business degree, a computer science degree a double-degree in maths and physics, a PhD, an ex-VC, a marketing expert who sold digital products worth millions of € and an entrepreneur with a prior exit - we are just 4 guys though, you do the math.

Simon, ex-vc turned degen, still wearing suits occasionally.

Simon (this me, @simonmolitor on X and _simol on discord) is a passionate catrepreneur who has been working in crypto for 4 years. He has previously worked in a VC and took his learnings from there into his start-up journey. You can read a lot about his journey by expanding his X bio.

Pierre, data-driven marketeer with a passion for funnels!

Co-Founder Pierre (@pierre_stoll_) is a degen in performance marketing. He lives and breathes marketing funnels and engagement campaigns. Previously he has built sales funnels that made millions for clients.

Marvin aka murph, leading tech, literally mastered German Engineering.

Marvin (@marv1n_eth) is a full-cat developer and a great generalist who has been working with more than 20+ crypto start-ups as interim CTO, fast-pacing his learning curve.

Dr. Marco Besier, physicist and mathematician turned degen (those are dangerous!)

Marco (@marcobesier), both have been building in crypto since years. Dr. Besier (that is Marco’s non-degen name), has studied Maths and Physics and has built a web3 developer academy where he is teaching smart contract coding.

Solana and DSID

When you think “identity”, which project on Solana comes to mind…? Chances are high, nothing at first. There is room for a “Solana ID”. We’ve been digging deep into the identity rabbit hole for longer than a year and are ready to bring a reputation system to the ecosystem that can most likely improve every single dApp built on Solana.

Most recently, DSID received a Solana Instant Grant and we are building Solana ID during Colosseum. Our Alpha is already live on our incubation chain, Concordium, which is a rust-based, identity-focused L1. Concordium Foundation were the first believers in our vision and provided a grant plus strategic as well as technical support since day 1.

Two members of the DSID team are Superteam members. I joined Superteam Balkans as our company is based in Bulgaria and I felt the Superteam needs the most support as it is very new.

Another partner of DSID is Blockchain Founders Group who is backing top founders in their first steps of realizing an idea. Our project was born during their acceleration program and we accepted a small investment from them as they are a strategically well connected investor.

Jupiter Ecosystem and Solana ID

One of our products is a DeFi score that dApps can query to get a creditability check on users - we piloted this already with Concordex to realize more tailored trading experiences (read more). Identity credentials can also be used to display more customized information on an app’s frontend depending on the digital persona of the wallet that logs in - think targeted ads and tailored offers!

We also plan to allocate funds of our treasury to $JUP so we can take part in governance.

Battle-tested by Gitcoin Passport, we also know that governance and voting activities can be generally improved by using some anti-sybil, identity framework. This is right in the ballpark of what Solana ID could be used for.

Approximate date for TGE: between 22.04.2024 and 31.05.2024

Partners, supporters and collaborative efforts

Since we’ve been busy buidling and biz dev’ing, we onboarded partners from various places.

Research and Tech

:point_right:t3: Concordium Blockchain
:point_right:t3: Partisia Blockchain
:point_right:t3: Polygon ID
:point_right:t3: Frankfurt School Blockchain Center

Investments and Grants

:point_right:t3: Blockchain Founders Group
:point_right:t3: Concordium Foundation
:point_right:t3: Solana Foundation

Customer Pilots and Integrations

:point_right:t3: Droplinked, ecom shop platform that leverages trust scores to find affiliates
:point_right:t3: Concordex, flexible trading terms based on credit scores
:point_right:t3: Boniversum, Germany’s 2nd largest tradfi credit bureau, piloting holistic credit scores
:point_right:t3: and more…

$SOLID Vision

:trophy: If your project were to succeed, how would it fundamentally change the web3 space?

Imagine abstracting away wallet logins as much as possible while additionally enabling automatic data sharing of identity credentials based on your privacy settings. UX improvements for the internet guaranteed. This needs to happen on Solana.

Today, dApps are serving strangers as code communicates with code - with DSID we can add human elements of identification to it while still preserving privacy and anonymity to large extents.

:warning: What would you say is your biggest challenges or obstacles as a project?

Focus. As early crypto project you are running on low fuel with no guarantee of how many miles are in front of you and when the next gas station comes up. If you don’t focus on the things that are important at this very moment, you get lost and end up dead.

We believe growing slowly and keeping liquidity healthy but not crazy, helps to stay sharp. This is also underscored by our philosophy of locking treasuries up and releasing increments that are healthy for growth only.

:thinking: What advice would you give to another team launching a token in web3?

We’ve talked to many crypto projects. Common themes:

  • Don’t go crazy on marketing expenses for token engagement campaigns; rather tap into different geographies strategically and find trusted people who will support you long-term.
  • Don’t spend a fortune on “tokenomics experts” but let them stress-test and validate your ideas from own research.
  • Timing does matter - launch your token into a bull cycle; even in tradfi companies opt for IPOs during up-cycles.
  • If legal consulting firm wants to build a token issuance structure with 4+ entities on multiple jurisdictions, the incentives are probably not aligned - they make more money that way but it most likely will be over-engineered for your cause.
  • Find that one guy who invests in your token pre-sale cause he thinks you rock and invites all his friends to join.

:eyes: What is something most tokens get wrong, and what steps are you taking to ensure that you won’t experience these pitfalls?

There is some zest you can squeeze out of the previous answers for this question too. Anyhow, on top of this you can structure common mistakes in these categories:

Legal → While you shouldn’t over-engineer your legal setup, you do need one! We have advisors in our corners that tell us what to do (Swiss Association as token issuance entity with FINMA appeal is a good way to go).

Community → You gotta be active and build a group of loyal followers. We’ve been actively building our Ambassador program, the DSID Creator Army, to have an invite-only influencer group that shares our vision. We’re also running a digital identity thought leader channel with more than 500 experts in the chat by now. Lastly, Solana and Superteam is a good help to reach loyal cats and kitties.

Token Design → Make sure the demand-side utility makes sense. Allocation, vesting, supply is all good but not too hard to nail down. Your token does have a unique utility though and this needs to create long-term demand for it. We do have design premises surrounding Data-To-Earn (D2E) and “Reputation Staking” that will create demand-side utilities.

Launch → Just know what you’re doing. Don’t get sniped. Check what bots are doing before you put all your liquidity in. Pick a launchpad and DEX that brings technical readiness which matches your project (LFG, cat-dets!).

Revenue Model → Launching a token is great to provide your project community-sourced liquidity - but it won’t sustain you forever. Make sure you’re building a product that is generating revenue in a time-span which is realistic. We’re a good combo of business minds and techies - we got this.

Appendix

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53 Likes

Thanks for the post, interesting topic. Am I understanding this correct: I would be able to opt-in to share data and get paid for my data that’s shared?

14 Likes

That is correct. Verifiers in the DSID ecosystem can make better decisions if they can tap in user wallet’s data - but our users will have upside in sharing data, not only accessing better terms with partners but literally getting paid for sharing data.

13 Likes

Great introduction and very interesting topic and project!
What is more exiting is to see a project from Superteam Balkan as a candidate on Jup launchpad.
LFG!

8 Likes

Interesting idea for sure, can you give some examples of what kind of wallet data businesses are interested in?

From what I’ve read, sounds similar to Grass Network but for wallet data. Definitely think Solana could use a flagship ID protocol, so good luck

8 Likes

I feel like it will be really helpful

7 Likes

Well thought out and well written Pitch. Thanks for that kind Ser.

I am amazed about the possibilities here. As in Jupiter you could opt in for your identity or you choose to not going the whole way but having a lesser Score.

I like it.

I could imagine a partnership with Jupiter on the trading (like perps) with a little bit better conditions for people with more trustworthy scores.

8 Likes

An excellent project that has proven to deliver value from day 1.

7 Likes

this could make life easier and faster :identification_card:

7 Likes

Yep! Very happy we have joined the BLKN team recently 🫶🏼

5 Likes

I love the focus on the purpose behind the token, not just its creation. The breakdown of utilities (Data-2-Earn and Reputation Staking) works.

The team’s experience in business, computer science, and blockchain presumably perfect for tackling the technical and commercial challenges of building a successful identity solution.

7 Likes

Very interesting project with great pilots!

How about integration projects with wallet providers?

7 Likes

Yes! We don’t need to be integrated with wallets as you link your DSID credentials (scores) to any pkpk account BUT it would be a nice UX to have the credentials and scores shown directly inside Solflare for example - working on sth :saluting_face:

5 Likes

Thanks! Identity has a Trilemma to solve, similar to blockchains. In self-sovereign ID you have 1) issuers of credentials, 2) holders of credentials and 3) verifiers of credentials. A credentials can be many things but let’s call it a “proof-of-X”, every degen gets that :smiley: With a token incentive model, you can bootstrap such a network into critical mass - that’s essentially what we’re trying to do (besides the rep staking and other utilities).

6 Likes

I’ve got to say, what you’re doing with DSID is genuinely groundbreaking. You’re tackling the huge task of changing how the internet handles identity and reputation, all while keeping privacy and user empowerment front and center. The story of how DSID came to be, with its roots in deep philosophical thought and cutting-edge tech, really shows how much heart and intelligence you’re putting into this.

The idea of making digital existence more authentic through attestations and societal nods is fascinating. It’s incredible how you’re linking something as abstract as identity to something as concrete and secure as blockchain technology. This could totally change how we interact online.

Reading through your project details, I’m blown away by the future you’re envisioning—a future where dealing with digital identity is simple and secure, thanks to DSID. The way you’re integrating advanced authentication, reputation credentials, and trust scores? That’s going to open up so many possibilities for better online interactions and transactions.

And the part about the $DSID token?
How strong did you research the token design regarding the outlined utilities? Will they create enough demand for the token?

6 Likes

Thanks for kind words sir! $DSID token has seen a lot of attention to detail for the design, working with experts on that.

Demand for the token increases mainly due to the fact that a) users can stake the token to increase their wallet scores to get more benefits and b) verifiers hold the token to pay for verification queries :saluting_face:

8 Likes

This project has a lot of potential to shape the future of online identity. Keep up the great work! We’re excited to see how DSID develops and how it can benefit the broader crypto community. The Data-to-Earn (D2E) model is intriguing. Can you elaborate on the specific types of data users could share and what measures are in place to ensure user privacy is protected during this process?
The lighthearted tone of your proposal is great , it adds personality! Keep us posted on future updates.

7 Likes

I really like the vision and mission shown by the DSID team. but I still don’t understand how the DSID security system works, do we need to verify our Solana Wallet such as Phantom Wallet, Solflare Wallet, or other Solana Wallets using PASSPORT ID, ID CARD, OR SIM CARD? and also does the trust score value depend on how much we transact in the Solana Ecosystem? If the more we interact in the Solana Ecosystem and the scores we get are large, will this open up many reward opportunities to earn $DSID?

7 Likes

In simple terms, you’re right; the more activity your onchain behavior shows, the higher the chances this elevates your internet reputation. Obv it depends on the kind interactions - anyway, we are not building a spying rating agency here, rather a protocol that allows to leverage and track GOOD behavior, fostering trust by verifiably showing your footprint.

You can but don’t have to authenticate with a passport. We have partnership with Concordium Blockchain who have built an identity wallet. If you’re holding your passport credentials in that wallet and connect it to Solana ID, this will def increase your account’s positive footprint.

7 Likes

Hey DSID team, indeed this is a solution that is desperately needed in this space. Although quite difficult to built. I’m coming from the traditional fintech space and have worked with several KYC providers in web2 and web3 for payments and banking companies.

I see a few challenges and would like to hear how your team addresses those.

  1. reputation scoring for wallets: are you collecting any verification elements of the end users that go beyond on chain transactions? i.e. proof of address and the likes or is your scoring sorely based on on chain activity. If you do plan to collect more data beyond on chain transactions, how would the defi community react? have you tested the KYC angle with DeFi users as I believer a large amount of users are against it.

  2. Even the best scoring model will have defaults / outliers. I assume your solution will be best utillized for offering under-colateralized loans. Something that thus far is only possible in traditional lending markets. Now in traditional banking, if someone defaults on their loan, the banks may have the right to seize property and the likes or sue the customer. Even if your scoring model is very good how will you handle users that build up their score for a considerable amount of time until a certain point to take funds and run? While there may not be a black and white answer to this I’d be curious to hear from you how you would address this issue. Perhaps a fractional or a soft KYC only for under-colateralized loans?

7 Likes