BreadAndRoses

Cardano is deciding whether and how to pay governance participants. The case for research first is strong: badly designed rewards can buy shallow voting, concentrate payouts, increase gaming and create a permanent treasury obligation. This proposal would spend ₳4.21M over one year to map existing work, collect governance data, model competing reward mechanisms, run a controlled pilot, publish a dashboard and dataset, produce research, submit a CIP and return to governance for a later adoption decision.

The proposal is unusually thoughtful about the problem. It distinguishes activity from quality, tests anti-concentration and anti-gaming effects, recognises 49 existing initiatives, stages delivery through seven milestones, reserves 3% for audit/oversight and promises refunds of unused contingency, pilot and cancelled-work funds. Direct sources confirm that CPS-0020 defines the incentive problem, CIP-0149 offers an opt-in alternative, Cerkoryn has published a reproducible draft model, the State of Governance report identifies incentive and concentration concerns, and Cardano Vision 2030 explicitly calls for role-based incentives and turnout safeguards.

The objection is not that the work is unnecessary. It is that DReps are being asked to authorize the full withdrawal without a verified legal recipient/controller, public operational cost basis, named independent auditor, enforceable milestone contract or finalized pilot rules. The proposal also depends on coordination with an already funded ₳32.9M IOR programme that covers incentives and governance. CGOV’s epoch-649 NCL record reports ₳457.396M of current withdrawals against a ₳350M limit (130.7%); the tool’s aggregation semantics need official confirmation, but the snapshot makes a clear enactment check necessary.

The direction is worthwhile, but central treasury-control evidence is missing. The appropriate pre-vote position is ABSTAIN pending specific documents, not NO on the objective and not YES on promises that cannot yet be tied to an accountable recipient.

This action makes two independent changes. First, it lets stake pools set their fixed fee as low as 75 ADA instead of 170 ADA. Pools are not forced to lower their fee, but smaller pools can use the lower floor to improve the return offered to delegators. The strongest evidence separate from PCP-006 is the Input Output Research incentives report: after the earlier 340→170 ADA reduction, 340 remained the dominant fee and 170 became a challenger tier rather than causing a market-wide race to the bottom. The same report identifies 873 of 1,614 active pools below the delegation level associated with consistent block production and argues that the fixed fee can favour multi-pool fragmentation by well-capitalised operators. This supports lowering the floor, although it does not independently prove that 75 ADA is the correct calibration.

Second, it completes a staged 25% increase from the original Plutus memory limits. Part 1 is already enacted. Part 2 adds only 1M transaction-memory units and 5.5M block-memory units, remaining within the Constitution's numerical guardrails. Official node 10.3 benchmarks tested much larger 1.5× and 2× budgets under an intentionally saturated workload and found predictable costs without an absolute network-performance risk, while still recommending conservative staging because deployed scripts can become dependent on higher limits.

Delivery is unusually feasible because there is no vendor, budget or long implementation chain: if ratified, the ledger changes the parameters. The strongest objection is governance quality. The action bundles unrelated economic and technical choices. Its claim that the minPoolCost change was ratified by the TSC on 9 July is not supported by the accessible minutes: the bundle was still being drafted on 8 July, and a 5–1 vote on 15 July approved concurrent Pre-Prod/Mainnet submission. The proposal also supplies no current pool-operating-cost study, numeric reversion thresholds or independently reviewed post-Part-1 mainnet telemetry.

Those shortcomings justify Medium rather than High confidence and require explicit feedback, but they do not outweigh the source-supported direction, low implementation burden and substantial safety headroom. The risk-adjusted recommendation is therefore YES.

This proposal does not buy a product and requests no ADA. It converts the 2026 Constitutional Committee election into an on-chain committee update. Five current credentials are described as ending at epoch 653; two incumbents—Philip DiSarro and Cardano Curia—are renewed, three other expiring or retired credentials are removed, and Marek Mahut and Leandros BSP are added. The intended result is a seven-member committee with the existing two-thirds quorum unchanged.

The case for acting now is strong: the proposal's fixed epoch-799 end date and the 146-epoch maximum term mean enactment is valid only in epoch 653. Missing that window risks a committee below its required minimum and therefore weakens Cardano's constitutional check on governance actions. The election was open to candidate registration, allowed DReps to approve up to four of ten candidates, published final Hydra evidence, and was followed by a detailed audit workbook. The audit recomputed the same four winners and found no fourth/fifth-place tie.

The strongest objection is legitimacy rather than technical execution. Only 38 DReps cast valid ballots, representing 43.43% of registered DRep voting power in the audit's epoch-645 snapshot. Stake-weighted support also differed materially from raw voter counts. In addition, the published audit records a warning that its epoch-645 per-voter weights matched Ekklesia's published candidate weights exactly for only one of ten candidates. The audit still found the same winners, but the discrepancy should be explained publicly and retained in the governance record.

On balance, maintaining a valid constitutional-review body through a completed election is directionally valuable and the evidence is sufficient for YES. Medium rather than High confidence reflects the voting-power discrepancy, limited independent capability evidence for the two newly appointed candidates, low ballot participation, and the proposal's unusually narrow enactment timing.

Basic Issue
Cardano needs to set a spending cap—called a Net Change Limit (NCL)—on how much can be withdrawn from the treasury for the year 2025. Without this limit being formally agreed on, no budget proposals or withdrawals can legally happen for that year.

Current State
There is no official Net Change Limit set for 2025.
Treasury spending for 2025 is not authorized under the Cardano Constitution.
Projects and governance actors cannot submit budget proposals yet.

End State (What’s Changing)
A Net Change Limit of 350,000,000,000,000 lovelace (350M ada) will be formally established.
This limit applies to the period from Epoch 532 to Epoch 604 (January to December 2025).

Once approved:
Budget proposals and treasury withdrawals can be made, up to that cap.
The ecosystem enters an annual budget cycle with a clear spending boundary.
The limit is based on 2024’s treasury inflow (~336M ada), aligning spending with income.

Why It Matters
It ensures constitutional compliance, budget transparency, and financial responsibility.
It enables projects to start applying for funds.
It links treasury usage to actual blockchain usage and performance—rewarding ecosystem growth.