Cardano DReps Debate 9.6M ADA Funding for Indian Police System

The proposal assigns development costs to Cardano’s Treasury and operating costs to Telangana. An optional evidence-verification service would return 70% of its revenue to the Treasury.

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Cardano News - Cardano DReps Debate 9.6M ADA Funding for Indian Police System

Trivolve Tech’s request for 9.6 million ADA has prompted debate over how Cardano should fund government adoption and assess the resulting economic returns. ESCO and James Meidinger, the delegated representative known as Blockjock, examined those questions during the “Da Waffle House” X Space. The proposed Police Force Management System (PFMS) would use Cardano to verify evidence records across police investigations and court proceedings, beginning in India’s Telangana state.

Funding Priorities and Expected Returns

ESCO called for clearer projections distinguishing near-term revenue from benefits that could take years to develop. He connected Treasury spending to customer acquisition and economic activity, arguing that delegated representatives, or DReps, need both short-term and long-term estimates when evaluating requests. The discussion also addressed alternative financing if the proposal does not receive approval.

Blockjock questioned the relationship between the requested funding and income from projected network activity. In his published voting rationale, however, he identifies timing and competing priorities as the reasons for opposing the request. He recognizes Trivolve Tech’s progress and potential long-term benefits, but prioritizes Liquidity Fund Part Two under the current withdrawal limit. He would welcome PFMS returning in the next fiscal funding cycle.

Development Costs and Verification Revenue

According to the proposal, Telangana would pay transaction fees, infrastructure costs and ongoing maintenance, while the Treasury would fund development. Trivolve Tech justifies that arrangement by making the core software open source and reusable beyond the first deployment. The team projects more than 1.5 million mainnet transactions during the first year.

The proposed paid verification service would provide authorized users with expedited evidence checks, alongside the regular verification process. Prices would start at $1.89 and rise with the complexity of each request. Revenue would be divided between Cardano’s Treasury at 70%, core Cardano library maintenance at 20%, and Trivolve Tech at 10%. This distribution applies to verification-service revenue, separately from blockchain transaction fees.

DRep BKIND opposes the allocation of costs and commercial benefits. In its published rationale, BKIND argues that the Treasury would finance development while the vendor retained the government client relationship and maintenance income.

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Payment Conditions and Sustained Use

The 15-month delivery plan provides five payments, beginning with 1.8 million ADA upon signing the administrator contract. Each subsequent installment would require verification of milestone deliverables by the Cardano Foundation and an independent reviewer. BKIND also questions the schedule because 7.8 million ADA could be disbursed before the final sustained-use milestone.

Supporting DRep ADAtainment emphasizes the existing Forensic Management System deployment, independent delivery checks and government-funded operations after launch. ADAtainment also expresses concern about the size of the initial payment and acknowledges that transaction volumes remain projections. The representative disclosed employment at the Cardano Foundation, which would administer the funding.

The final 1.8 million ADA installment is scheduled for month 15, after sustained usage has been demonstrated. Under the proposal, unspent funds would be returned to the Treasury.