@Mile thank you so much for your questions and for finding our proposal interesting. I took some time to respond because I wanted to include your questions and our answers in the Q&A section of our proposal.

Question: You mentioned several achievements and awards, indicating that your product is already recognized by the community and potential customers. Given this recognition, why is approximately 35% of the requested amount allocated to marketing?

With the EU set to implement the Digital Product Passport (DPP) between 2026 and 2030, a wide range of product categories will be affected, including textiles, furniture, chemicals, batteries, consumer electronics, and construction products. Our goal is to position Polkadot as the trusted and scalable network for managing these regulatory requirements. Effective marketing will establish Polkadot as the go-to solution for companies and regulators, distinguishing it from private networks and other blockchains.

Additionally, Polkadot's marketing efforts have yet to focus on industries like luxury, food and beverage, or pharma. Substantial marketing and advertising efforts are necessary to leverage Authena's momentum among its customers and position Polkadot within these critical sectors, showcasing its superior technology applied to real use cases. This visibility is crucial for driving adoption and ensuring Polkadot becomes the standard for compliance and traceability.

We also need to emphasise that any company considering a competing network or alternative solutions should include Polkadot in their analysis. Our goal is to ensure that Polkadot is considered a viable option for integration, even if they opt for a private cloud solution, for example.

By investing in marketing, we want to ensure that Polkadot is well-positioned at the forefront of this significant regulatory shift, driving long-term success and widespread adoption across diverse industries.

Question: Your request for a lump sum payment for a project lasting more than two years is unconventional. Typically, funds are released based on milestones. I suggest structuring the fund release around monthly milestones, with payments released upon milestone fulfillment.

We appreciate your suggestion and understand the importance of accountability in funding structures. Our initial lump sum request was designed to mitigate the financial risks associated with DOT price volatility, given the significant financial commitments of the project. Lump sum funding enables us to secure better terms and pricing from vendors and partners, ultimately making the project more cost-effective and efficient.

However, we are open to a hybrid approach and are currently evaluating how to incorporate milestone-based funding into our proposal. We welcome any suggestions you may have.

Question: While you list several patents, only one is granted. As we know, anyone can file for a patent, but only granted patents hold significance. Could you elaborate on the relevance of the granted patent (US11610177B2) to this proposal?

The granted patent (US11610177B2) covers one of our core products that uses NFC technology to create a digital certificate and detect tampering. This patented solution is critical for ensuring the authenticity and integrity of products, which aligns perfectly with the new DPP regulations. The technology acts as a data carrier, providing a hardware link to the digital twin stored we-hope-on Polkadot.

Our pending patents cover additional products that also serve as data carriers, connecting the physical world to the to-be Polkadot platform. These developments are recent and still pending approval. Importantly, our latest patents have been based on collaborative work with nine PhD researchers from leading Swiss universities (ETH and ZHAW). While anyone can file patents, we are confident in the quality and significance of our research and development efforts, which continue to produce innovative solutions.

Here is a recent video demonstrating our patented product in use by one of our early and recurrent customers: Video Link

Question: Authena’s team comprises 18 Full-Time Equivalent employees. Can you provide more information on how these employees are currently funded and the source of profit supporting them?

Authena's team is currently funded through a combination of paying customers and investors. Our client base includes renowned companies like LVMH, Nestlé, and Neom. In terms of investments, we are currently in Series A funding and have successfully raised over 5 million USD in previous rounds. This robust financial support enables us to maintain and expand our team.

Question: Your proposal indicates that the product is already functioning on Ethereum and needs to be transferred to Polkadot. Given that you have explored various Layer 2 solutions and invested significant time and effort into building and modifying functionalities on Ethereum and its Layer 2 solutions, why does your budget include significant allocations for activities that appear to have already been completed?

While our product currently functions on Ethereum, migrating to Polkadot involves extensive modifications to ensure security, privacy, and verifiability. Our current implementation often requires optimizing transactions by batching hashes or events on the mainnet. Moving to Polkadot, however, necessitates reworking the blockchain logic to fully leverage Polkadot's capabilities. This migration is not a simple transfer but a comprehensive enhancement to align with Polkadot’s ecosystem.

The significant budget allocation reflects the extensive work required to ensure that our solutions meet the regulatory requirements of various Digital Product Passport norms. The DPP implementation will utilize Polkadot's privacy-centric features, integrate IoT sensor data directly connected to Polkadot, and deploy AI analytics based on blockchain protocols. These advanced functionalities require substantial development, testing efforts, and resources.

Moreover, integrating our patented IoT multi-sensor devices with Polkadot, ensuring seamless real-time data transmission, and developing blockchain-based AI analytics are activities that go beyond our current Ethereum-based implementation or Layer 2 NFT creation. These tasks are crucial for delivering a more robust, scalable, and secure solution.

We need to set the standard and create an alternative that can be used securely by the network, one that not only innovates but also adapts to the significant changes ahead and complies with evolving regulatory standards.

I hope this addresses your questions. If there are any points I missed or if you need further clarification, please feel free to ask. Our development costs are focused solely on blockchain integration. Additionally, we have significant investments in R&D for hardware and AI development, funded through universities, private investors, and government grants. The funds we are requesting aim to position Polkadot as the preferred blockchain for all physical binding products in the market.

Thank you for your consideration and feedback.

Fernando

@EzioRed 

GM!

Thank you for your questions and feedback. Here is our vision of how our initiative can be pivotal for the growth of the Polkadot network and its alignment with Polkadot’s goals.

The upcoming EU Digital Product Passport (DPP) regulations, set to be implemented between 2026 and 2030, will require digital records for products like textiles, furniture, chemicals, batteries, electronics, and construction products. Similar standards are emerging in the U.S. and worldwide, such as FSMA 204. By integrating Polkadot into our traceability platform, we aim to make Polkadot the go-to compliant-ready network.

We will showcase Polkadot’s capabilities through successful projects in luxury goods, pharmaceuticals, and food and beverages. Our partnerships with companies like Nestlé, Hennessy, and NEOM, and pilots with LVMH brands like Louis Vuitton and Dior, will highlight Polkadot’s effectiveness. Authena is the sole asset tracking partner for Oxagon's supply chain and logistics within NEOM, a $500 billion smart city project in Saudi Arabia. NEOM aims to become a global hub for innovation and sustainability, and Authena’s technology has already reduced supply chain inefficiencies by over 70%, providing unprecedented visibility and security. This makes Authena an ideal partner for showcasing Polkadot’s capabilities in high-impact, real-world applications.

The DPP market is projected to be worth billions by 2030, with millions of digital identities needing secure storage. Capturing even a fraction of this market could significantly boost network activity and growth for Polkadot. Additionally, having numerous products on the network opens opportunities for new projects involving RWA, driving further ecosystem growth and innovation.

We are committed to positioning Polkadot as the preferred blockchain for DPP compliance. This will enhance network activity, expand the ecosystem, and ensure Polkadot’s leadership in technological and regulatory advancements.

Thank you for your consideration. If you have further questions or need more details, please feel free to ask.

Fernando

https://t.me/freygaido

fernando.rey.gaido@authena.io