### progress report 1

dependency upgrades to substrate 2.0.0 are all done:
  * Encointer testnet code for Gesell ([notee](https://github.com/encointer/encointer-node)) and Cantillon ([teeproxy](https://github.com/encointer/encointer-node/tree/sgx-master) and [worker](https://github.com/encointer/encointer-worker)). Testnet Gesell has been reset on the new code base, Cantillon will be reset soon.
  * [substrate-api-client](https://github.com/scs/substrate-api-client)
  * [substraTEE-node](https://github.com/scs/substraTEE-node) and [substraTEE-worker](https://github.com/scs/substraTEE-worker)

As there are no test slots available on rococo as of today, we'll have to pause further work on this grant and wait for rococo V1

Our team is looking forward to the release of rococo V1 and to demonstrating our vision for SSI on Polkadot

here's the corresponding motion:
https://polkadot.polkassembly.io/motion/15



### progress report 3: partial delivery

We have successfully implemented a XCM oracle for sybil-defense based on the recent `rococo-v1` codebase. 

Watch our [demo video](https://youtu.be/Fw2dalJO1hM) where we show how any parachain can query our oracle about a person's unique proof of personhood

This is a partial delivery on our proposal. We will publish a tutorial soonish.

With respects to our parachain slot auction aspirations, we have changed our strategy. Read our [Encointer Common Good Parachain Manifesto][https://app.subsocial.network/1042/encointer-common-good-parachain-manifesto-835)

So, our fulfillment of goals 3 and 4 in the proposla are in the hands of the Kusama and Polkadot communities.

\[Joe here via proxy\]

Thanks for a well written proposal with context on Encointer's mission and clear milestones. I will support this for the following reasons:

- Encointer provides a unique value proposition to other blockchains, and is made possible by Polkadot's message passing.
- The proposal provides clear reasons why funding _now_ would enable them to take advantage of an opportunity that they otherwise couldn't act on.
- The SubstraTEE team has a history delivering innovative products for several years and I have confidence that the team has the ability to deliver further.
- Swiss Association adds credibility that DOTs will be appropriated according to Encointer's mission.

### progress report 2

We have proposed our parachain on Rococo!
https://app.subsocial.network/@Encointer/rococo-parachain-proposal-for-sybil-defense-784

Encointer is a platfrom for self-sovereign identity and local community currencies with self-issued universal basic income. 
The fundament of Encointer is its [unique-proof-of-personhood protocol](https://book.encointer.org/protocol.html) which leverages the fact that a human can only be in one place at one time. 
Employing physical concurrent pseudonym key-signing parties, Encointer aims to bring self-sovereign identity with [strong guarantees](https://book.encointer.org/protocol-threat-model.html) to Polkadot.

What Encointer SSI will enable for the Polkadot Ecosystem:
  * one-person-one-vote governance schemes
  * sybil-attack prevention for various use cases (faucets, airdrops, social media)
  * proof-of-location: We can learn in what region people are at the time of Encointer ceremonies because their physical presence is attested by other humans.
  * selective disclosure of verifyable credentials thanks to trusted execution environments (TEEs) (built on SubstraTEE)
  
The current status of Encointer is a functional prototype with two live testnets: Gesell and Cantillon. Our [bot communities are constantly actively testing](https://explorer.encointer.org/). Cantillon development has been funded with a web3 grant which has been delivered in July.

https://book.encointer.org/testnets.html

Moreover, we developed a mobile phone app based on polkawallet.io for the purpose of participating at Encointer Ceremonies and as a wallet for Encointer local currencies. Showcase:

https://youtu.be/tcgpCCYBqko

Encointer is now actively planning pilot projects with NGO's targeting local communities in developing nations where many people have neither a state-issued ID document nor a bank account - but do have a mobile phone. 
We aim at furthering financial inclusion and improving on equal opportunity for all humans. Encointer is a non-profit Swiss association.

Read our primer article: https://medium.com/@funny_mango_mouse_595/towards-a-decentralized-global-universal-basic-income-995651b2ceb6

Encointer requests funding from the Polkadot treasury to:

  1. Integrate testnet Gesell with Rococo as a parachain (local testnet first, then Rococo as soon as it allows new parachains (currently there's a freeze))
  2. Demonstrate SSI authentication on a second parachain (i.e. subsocial) through HRMP (the most simple claim being that certain AccountId has attended the last N subsequent ceremonies and therefore can claim this only for one account). Encointer is the ISSUER of that claim, the other parachain is the VERIFYER in need for sybil-attack prevention, the account holder being the SUBJECT.
  3. Participate in first Kusama slot auction with a Gesell-style parachain (transparent, pure substrate pallets) and set up crowdfunding
  4. Participate in first Polkadot slot auction with a Cantillon-style parachain (SubstraTEE-based, privacy-enhanced and [scalable](https://github.com/w3f/General-Grants-Program/pull/323) with [sharding](https://www.substratee.com/sharding.html)) and set up crowdfunding

This proposal also covers the following maintenance expenditures:
  * infrastructure: servers for validators and other services
  * substrate dependency upgrade to 2.0.0 once released (thereby upgrading [substrate-api-client](https://github.com/scs/substrate-api-client) and [SubstraTEE](https://www.substratee.com) at the same time which are currently on alpha.7)

Assuming the current DOT valuation of ~6$ we would commit to deliver the above for 7000 DOT (bond: 350 DOT)

Disclosure: The "Encointer Testnet Cantillon" web3 grant is currently the associations only capital and is paid in vested DOTs, which means the association lacks 
liquidity to pay developers. We can't access the recent gains on DOT valuation which we will gladly contribute to further development entirely as soon as they become transferrable. 
We are a [non-profit association](https://encointer.org/wp-content/uploads/2020/04/Statuten-encointer-20200229-english-translation.pdf) and will spend all funds on furthering the associations' goals. No risk of overpaying this proposal.

Our submitted proposal: https://polkadot.polkassembly.io/treasury/9

#52 Treasury Proposal: Encointer Self-Sovereign Identity Parachain for Polkadot