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Pixelproof V2 Proposal: Decentralized Photo Storage dApp

inMedium Spender
7 months ago
Executed

Over the past two weeks, we’ve listened closely to the community, reviewed feedback from delegates and DVs, and re-evaluated our priorities. This updated proposal reflects that input with a substantially reduced budget and a tighter, clearer scope.

Our goal remains the same: to build the first flagship consumer-facing dApp on Polkadot, a decentralized alternative to Google Photos that puts user ownership and privacy at its core.

This version focuses exclusively on delivering a lean, functional MVP. Core features include decentralized photo storage, embedded wallet authentication, and basic sharing and access controls—everything needed to prove real-world adoption and lay the groundwork for future development.

We’ve also strengthened the technical clarity and business logic, adding a detailed Design Document outlining architecture, budgeting, and delivery milestones.

This proposal is a first, concrete step to show what Polkadot-native infrastructure can achieve. We’re excited to help set the stage for the next generation of decentralized apps.

PixelProof.jpgApillon is proud to submit this proposal for Pixelproof - a fully decentralized, production-grade photo storage application built on the Polkadot ecosystem. Our goal is simple yet bold: to create the first flagship consumer-facing dApp on Polkadot that rivals mainstream solutions like Google Photos, but with true user ownership, privacy, and decentralization at its core.

Despite Polkadot’s maturity in infrastructure and protocol-level innovation, the ecosystem still lacks powerful, user-first applications that resonate beyond crypto-native circles. Pixelproof fills that gap.

Pixelproof is more than a technical showcase - it is a usable, polished, multi-platform application designed for everyday users. It leverages:

  • Decentralized Storage Integration:
    Users can upload and store photos on IPFS, pinned via Crust Network, with clear ownership and verifiable hashes.
  • Embedded Wallet Authentication:
    Simple, non-custodial wallet login and account creation for seamless onboarding, avoiding seed phrase complexity.
  • Clean Web Interface:
    A web application allowing users to sign in, upload, browse, and manage photos.
  • Foundational Mobile Experience:
    A lightweight mobile app to support uploads and viewing (based on Immich foundations), but without all advanced features.
  • Stripe Integration for Payments:
    Enabling fiat payments for premium storage or features, with transparent routing of revenue back to the Polkadot Treasury.
  • Documentation & Governance:
    Clear setup guides, user instructions, and transparent reporting on revenue flows.

This proposal outlines a MVP Development with the total requested funding of $225,000, covering infrastructure, smart contract development, wallet integration, UX, DevOps, and open-source tooling.

We invite the Polkadot community to review the full proposal PDF for an in-depth breakdown of architecture, and the strategic value Pixelproof brings to the ecosystem.

Together, let’s show the world what a real Web3 app can look like!


Backup Google Doc link:
https://docs.google.com/document/d/1qgcyStHirRj2wT-hnzJYKDV0WqDMKuwK39EfdBOnKVU/edit?tab=t.0#heading=h.ctwwp53pk42

Comments (13)

7 months ago

Hi Matjaz, thank you for the updated proposal. I appreciate the more focused and detailed description and applaud the idea of first doing an MVP. As before, I really support the big picture of utilizing the technology already available in the ecosystem to create a mainstream product that focuses on decentralization, ownership and privacy. The participation from different teams is also extremely positive.

I do still have a couple of questions regarding how the project will address privacy:

  • I don't believe I saw the Umanitek AI moderation in the new version, which I understood was meant to scan for sensitive content. Do you intend to use AI and if so, at which point in time and in which way?

  • In the Immich fork you are planning, could you please further clarify how the encryption of the photos would be?

From my understanding Immich uses AI on the server, where the photos are not encrypted. On the other hand I understand Ente uses AI on the client(user device) given photos are E2E encrypted. So, in the case that PixelProof photos are also E2EE I am not sure how Immich’s AI would be able to access them.

I would appreciate it if you could further clarify these aspects so I can better understand how the privacy of the photos will be handled to indeed ensure that only the user has access to the photos.

7 months ago

@🌎 ValidAndina 🏔️ 

Thank you for the thoughtful feedback and for taking the time to read through the updated proposal in detail. I really appreciate your supportive stance on the big picture- Let me address your questions around privacy and encryption point by point:

1. Umanitek AI Moderation
You’re correct that Umanitek was part of the original proposal. However, due to the significantly reduced budget and the decision to focus on delivering a lean MVP, Umanitek will not be part of the initial release.

That said, if the MVP shows traction and the community sees value in adding this layer, we plan to integrate Umanitek in a subsequent phase. We agree that AI moderation is important for long-term safety and compliance, and it remains firmly on the roadmap.

2. Immich Fork and Encryption Approach
You’re absolutely right in pointing out that Immich today typically performs server-side AI processing and does not fully support end-to-end encryption like Ente. However, our approach differs significantly from a direct Immich clone.

Here’s a clarification from our CTO on how we are approaching this:

“PixelProof is not going to be a complete fork of the Immich project. Instead, we will selectively integrate only the components necessary to showcase a fully on-chain image storage solution that is trustless, decentralized, and built on Polkadot infrastructure.For the MVP, we plan to re-use parts of Immich, including album creation and listing, some UI elements for image display, album sharing, and favorites.We intentionally will not implement features like server-side AI image recognition or image mapping, as these would introduce significant complexity and undermine our focus on privacy and decentralization.Regarding encryption, all images will be fully client-side encrypted. The user’s embedded wallet will act as the safeguard for their encryption key.Each embedded wallet on Apillon is secured on-chain within a confidential smart contract. The user gains access via a passkey stored in their browser, device, or a cloud backup. The encryption key itself will be derived from the user’s wallet and passkey. This ensures that only the user can access their stored images, provided they have access to their passkey and wallet.”

So in simpler terms:

  • No server-side AI processing of unencrypted photos in the MVP.
  • No image recognition features at this stage.
  • All images encrypted on the client before storage.
  • Only the user retains access to decrypt them.

7 months ago

Hi Matjaz,
Thank you for submitting this upgraded and updated proposal. We appreciate the progress and clarity. We would like to better understand the revenue model for the product. Could you shed some light on how the 3-year revenue projection was formulated? Specifically, what key assumptions were used in creating this forecast?
Additionally, while we understand that marketing strategy specifics may not be the primary focus at this stage of the project, we’d still like to get a clearer picture of the marketing plans moving forward. Could you also confirm whether Veronika Jelen will be leading this effort, and if so, share more about her role and experience in this context? And would love to see some of her existing/previous marketing related works.
You may also contact us at REEEEEEEEEE DAO on X
Please do allow up to 24 hours of responding time due to time zone and scheduling.
REEEEEEEEEE DAO

7 months ago

Hey @1THDCviNjyo7fUmoGZ9f8u3TznQNryWBWQCeZmDe11f9Eoe 

Happy to shed some light here :)
The 3-year revenue projection was developed using a bottom-up modeling approach, grounded in realistic adoption curves and benchmarked against comparable Web3 and open-source SaaS products. The key assumptions include:

  • User Growth
    Year 1: 1,500–3,000 active users, primarily from early adopters and the Polkadot ecosystem.
    • Year 2: 5,000–10,000 users, expanding to privacy-conscious creators and Web3-native communities.
    • Year 3: 15,000–30,000 users, reaching broader audiences seeking decentralized alternatives.
      These figures were benchmarked against similar decentralized storage and creator tooling platforms.
  • Conversion Rate
    We assume 15–25% of users will convert to paying users for premium features (e.g., storage upgrades, NFT minting, tipping). This is higher than typical Web2 freemium SaaS (~5–10%) due to stronger ownership and monetization incentives in Web3.
  • Average Revenue Per User (ARPU)
    ARPU is estimated at $5–8 per month for paying users, in line with comparable offerings on the market.
  • Churn Rate
    A monthly churn rate of 5–8% is assumed, accounting for early experimentation and onboarding friction. We expect retention to improve over time as the product matures and trust is built.
  • Revenue Allocation
    100% of net revenue (after payment processing and conversion fees) is routed to the Treasury.

These assumptions are directional, not predictive. The goal is to illustrate the potential for sustainable Treasury revenue under reasonable growth and usage scenarios, not to promise exact figures.

Regarding our marketing strategy and Veronika’s role in it, her involvement with Apillon will continue in the same way for Pixelproof. Marketing responsibilities are shared across the team, with both co-founders (Domen and myself) actively contributing, so it is not solely handled by Veronika.

Our marketing approach is grounded in measurable performance, as demonstrated with Apillon. We focus on validating product-market fit through live campaigns and building traction organically, ensuring that every dollar spent amplifies what’s already working.

Our team’s experience and proven track record speak for themselves:

We’ve run targeted Google Ads campaigns to test messaging, channel-product fit, and user intent. The results have consistently outperformed industry standards. Below you can get some stats from our previous campaigns:

Google ads performance summary

Click-through rate (CTR) analysis

  • Average CTR across campaigns: 8.05%
  • Top performer: NFT campaign with 15.37% CTR and €0.11 CPC

→ Industry benchmark (Tech/Software): ~3.17%

→ Apillon is achieving 2x-5x higher CTRs than average.


Conversion rate analysis

  • Average conversion rate across campaigns: 15.28%
  • Top performing campaigns:
    • NFT: 19.05% (5,048 conversions, €0.60 per conversion)
    • Embedded Wallets: 19.05% (1,072 conversions, €1.53 per conversion)

→ Industry benchmark (Tech/Software): ~3.17%

→ Again, Apillon’s results are 5x-6x above average.


Cost efficiency

Exceptional outliers:

  • Total campaigns average: €0.18 CPC and €0.96 per conversion
  • NFT campaign:
    • CTR: 15.37%
    • Conv. rate: 19.05%
    • €0.11 CPC and €0.60 cost per conversion = elite-tier performance

These results aren’t just promising—they validate that our audience targeting, messaging, and product positioning resonate. And we will continue to do so with PixelProof as well.

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Requested

USDC
225.00K USDC

Proposal Passed

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