On-chain Funding

Mina Protocol

In the first development phases of the project, we selected the Mina Protocol as the blockchain layer for our platform. By implementing our solution as smart contracts on top Mina blockchain, every user’s action is a ZK proof, which allows us to ensure the transparency and verifiability of our programs without any trade-off to user’s privacy. While the cross-chain features are in the long-term roadmap, Mina is currently supporting the heart of our innovations.

ZkApp

To trust an on-chain protocol, users need to understand how exactly “on-chain” the protocol can be, what can be verified by the public, and what is being ensured by the network of decentralized nodes. For Auxo, all of our funding workflows are currently being implemented in zkApps and deployed on the Mina blockchain, which ensures the verifiability of the source code as well as the data.

“zkApps (zero-knowledge apps) are Mina Protocol smart contracts powered by zero-knowledge proofs, specifically using zk-SNARKs.” — Mina Docs

Similar to the concept of smart contracts source code being compiled to bytecode and attached to an address in EVM networks, zkApps source code written in Typescript are processed as Zero-knowledge circuits and they can be compiled and correspond to their unique verification keys. This mechanism ensures the correctness and verifiability of zkApps’ logic after they are deployed.

Funding Workflows

Pre-investment Period

• Application workflow — Builders describe their projects (vision, mission, milestones, budgets, etc.) and apply for a funding campaign.

• Feedback workflow — Investors require additional information, provide feedback and perform necessary screening procedures.

Investment Period

• Funding workflow — Investors make their decisions and deposit capital in the protocol for selected projects. This process requires a single-transaction action and the privacy of their decision is preserved.

• Finalization workflow — The organizer works with the investors to finalize the funding result, depending on predefined rules and agreements.

Post-investment Period

• Fund allocation workflow — Deposit capital can be allocated immediately after the investment period ends or vested according to the agreements between investors and builders.

• Review workflow — The agreement on fund allocation can be implemented as a milestone-based vesting mechanism to protect investors’ benefits and help motivate builders to deliver their milestones.

• Executing investors’ rights workflows — These workflows can be voting on a proposal, claiming dividends, or selling shares on a secondary market.

By establishing these workflows on top of an on-chain environment, decentralized trust can be built between Builders, Organizers, and Investors from all over the world.