2025 Cardano NCL
7 of 7 committee members voted
- Cardano Atlantic Council07e0eb70…5bdeYesResigned · term ends epoch 580Rationale
This governance action, as proposed, is Constitutional.
This governance action, proposing a Net Change Limit (NCL) for the Cardano ecosystem, is Constitutional.
- Cardano Foundation6796d87d…c280YesExpired · term ends epoch 580Rationale unavailable
- Cardano Japan Council (ICC)4012cab5…0755YesExpired · term ends epoch 580Rationale
The 2025 Net Change Limit, submitted on 2025-04-25, is considered constitutional.
[Constitutional] This governance action was reviewed in accordance with the Cardano Blockchain Constitution, focusing on whether it is appropriate to vote on this type of Info Action and its constitutionality. Initially, discussions arose from the interpretation of Article VII, Section 4, which states that Info Actions generally do not require a vote unless they pertain to budgetary matters. 1. Voting Obligation (Article VII, Section 4): The Constitution states that Info Actions are not subject to mandatory votes for Constitutional Committee members, except when they relate to the budget. This Info Action concerns the Net Change Limit, which governs the potential allocation of treasury funds. Three members voted YES, arguing that this Info Action indirectly affects the budget and is therefore eligible for a vote. Two members voted ABSTAIN, asserting that it does not directly allocate funds and is thus not subject to mandatory voting. 2. Constitutional Validity: No member argued that this Info Action contained unconstitutional elements. It was unanimously agreed that the proposal complies with the Constitution.
Based on the majority decision (3 YES, 2 ABSTAIN), a vote was cast in favor of this Info Action. Despite differing interpretations regarding the voting obligation, there was no evidence or opinion suggesting the proposal was unconstitutional. Therefore, we conclude that this info action is constitutional.
- Emurgodc2b0706…89b8YesExpired · term ends epoch 580Rationale
EMURGO concludes to vote in favour of this Info Action, based on the rationale provided below.
This Net Change Limit (NCL) Info action (7d9fc9fe4cee64...7db600) fulfills the requirements set forth in Article III, Section 5 of the Cardano Constitution, and as a result, we conclude that the proposal is constitutional.
Link to Info Action: https://adastat.net/governances/7d9fc9fe4cee64fb34e57783378ac869a85c78d6fbcd4078ed131ab6fa3c7db600
Reference
Article III, Section 5:
“In order to promote transparency in the process of on-chain governance, prior to being recorded or enacted on-chain, all proposed governance actions are expected to follow a standardized and legible format including a URL and hash of all documented off-chain content to the Cardano Blockchain. Sufficient rationale shall be provided to justify the requested change to the Cardano Blockchain. The rationale shall include, at a minimum, a title, abstract, reason for the proposal, and relevant supporting materials. The content of every on-chain governance action must be identical to the final off-chain version of the proposed action.
"Hard Fork Initiation" and "Protocol Parameter Change" governance actions shall undergo sufficient technical review and scrutiny as mandated by the Guardrails to ensure that the governance action does not endanger the security, functionality, performance or long-term sustainability of the Cardano Blockchain. On-chain governance actions should address their expected impact on the Cardano Blockchain ecosystem.
All owners of ada shall have the right to ensure that the process for participating in, submitting and voting on on-chain governance actions is open and transparent and is protected from undue influence and manipulation.”EMURGO concludes to vote in favour of this Info Action.
- Input | Output3c9ebce6…1e4cYesExpired · term ends epoch 580Rationale
Input | Output finds the “2025 NCL” Info Action constitutional.
The Cardano constitution requires a Net Change Limit to be in place prior to any withdrawals made against a Cardano Blockchain ecosystem budget (Article IV, Section 3; TREASURY-01a), making the Net Change Limit a critical dependency of later treasury actions– and, by extension, the budgets they execute.
A Net Change Limit has already been established for the 2025 period and the Cardano Constitution does not dictate a process for adjusting a Net Change Limit for a given period. However, there is nothing in the constitution preventing multiple Net Change Limit Actions in a given period, and it does not prevent DReps from using subsequent Info Actions to make such adjustments.
The Action under consideration, “2025 Cardano NCL,” is an Info Action, and the Constitution permits members of the Constitutional Committee to express their views on it (Article VII, Section 4). Given the importance of the NCL to later budget and treasury withdrawals, IO exercises that freedom and finds that this action is consistent with the standards of the Cardano constitution.
The “Cardano 2025 NCL” Info Action is consistent with constitutional requirements.
- Intersect Constitutional Council85c47dd4…bf64YesExpired · term ends epoch 580Rationale
The Intersect Constitutional Council votes that the governance action (gov_action10k0...5xl5y5) is constitutional. This is an Info Action that proposes a 200M ADA net change limit (NCL) for the rest of 2025.
The governance action proposes a net change limit (NCL) of 200 million ada for the year 2025. The NCL is an off-chain parameter that establishes the maximum amount of treasury withdrawals permitted for a defined period. Establishing an NCL is a constitutional requirement under TREASURY-01(a) and TREASURY-02(a) guardrails, as outlined in Appendix I Section 3 of the Cardano Blockchain Ecosystem Constitution.
The proposal format meets the required standards outlined in Article III Section 5. It includes a title, abstract, rationale, metadata anchor, hash, and supporting materials in a clear and legible format. All materials are properly linked and verifiable.
As an Info Action, this proposal has no direct on-chain effect and therefore cannot be vetoed by the Constitutional Committee. Nonetheless, the ICC may provide an opinion on the constitutionality of the proposed direction. Upon review, the Council determined the action complies with Article IV Section 3, enabling treasury withdrawals and supporting the operational framework for Cardano’s community-led governance.
This action is the first NCL proposal to proceed a previously passed NCL, in this case, a 350M ADA NCL that was accepted by a DRep and ICC majority (even though this Council deemed that particular proposal to be unconstitutional due to some proposal content inconsistencies). If approved, this proposed 200M ada NCL will override any previously proposed or approved NCL for calendar year 2025.
The Council has voted constitutional. The proposal satisfies all formatting, procedural, and constitutional requirements. It is consistent with Articles III and IV of the Cardano Constitution, and complies with treasury guardrails.
- Eastern Cardano Council2ea7a78e…10ecAbstainExpired · term ends epoch 580Rationale
We have determined that this Info action does not meet the criteria deemed necessary for the Constitutional Committee to assess its constitutionality.
Article VII, Section 1 of the Cardano Constitution states "The Constitutional Committee shall comprise a set of owners of ada that is collectively responsible for ensuring that on-chain governance actions prior to enactment on-chain, are constitutional."
Additionally; Article VII, Section 4, Paragraph 2 states "Because "Info" actions have no on-chain effect and, accordingly, are neither constitutional nor unconstitutional, Constitutional Committee members may not prevent “Info” actions from being recorded on-chain. Members of the Constitutional Committee may nevertheless record a vote on-chain regarding an "Info" action in order to express their view on such "Info" action, including whether the suggested course of action proposed in such "Info" action, would be, in the view of such member, unconstitutional if it were to be enforced by on-chain mechanisms."
Finally; Article VII, Section 4, Paragraph 3 states "In the case of "Info" actions that propose a Cardano Blockchain ecosystem budget, Constitutional Committee members shall record a vote on-chain that sets forth their opinion as to whether the proposed budget, if it were to be implemented in the form contained in the "Info" action, would violate this Constitution."
The governance action with ID "7d9fc9fe4cee64...7db6#0" and title "2025 Cardano NCL", as an Info governance action, does not relate to a budget proposal, nor does it gauge sentiment towards another type of governance action which could be enacted on-chain, so the Constitutional Committee is not empowered to assess its constitutionality, ensuring DReps and SPOs are the only ones able to influence its outcome.
We therefore Abstain.
We abstain from assessing the constitutionality of this governance action.