Governance Actions

Set 2025 Net Change Limit of 300M ADA, 2026 Net Change Limit of 250M ADA

As part of the budget approval process, it is necessary to establish a Net Change Limit. This serves as an opportunity for all governance stakeholders to formally express their positions regarding the proposed Net Change Limit, ensuring transparency, accountability, and alignment with organizational objectives. 2025 Net Change Limit of 300,000,000,000,000 lovelace (300M ada) 2026 Net Change Limit of 250,000,000,000,000 lovelace (250M ada) The Net Change Limit beyond 2027 is not defined in this governance action. The Net Change Limit will be used when reviewing both budget actions and treasury withdrawal actions to ensure constitutionality as required by Article IV of the Constitution and the Treasury Withdrawal Guardrails outlined in Appendix I.

Decrease Treasury Tax from 20% to 10%

Treasury cut (tau)20%→10%

Should K increased?

The K parameter was created to limit the total number of ADA staked to one pool. The K parameter determines the saturation of stakepools. To calculate the saturation of stakepools you can take the total number of ADA and divide it by K. K is currently 500, and pool saturation is currently 74,551,771.86 ADA. Pool saturate will increase slightly each epoch as more ADA is minted each epoch from staking rewards. K also has a large effect on a0. a0 is another Cardano protocol paramter that determines ADA staking rewards per epoch. a0 is currently set at .3. If a stakepool operator pledges the enough ADA to saturate their pool they earn 30% more ADA rewards per epoch. If you pledge half of the pools saturation then any delegates earn 15% more ADA rewards after SPO fees. Smaller pledges have a higher impact on staking rewards with a k parameter that's higher.

Info Action (15f82a36#0)