2025 Net Change Limit Extension
On-chain changes
Informational action. No on-chain effect; the vote signals opinion only.
Abstract
The Cardano Community adopted the 2025 Net Change Limit (NCL) on 24 April 2025, which defined the maximum amount of lovelace that could be withdrawn from the Cardano Treasury from the start of Epoch 532 until the conclusion of Epoch 604. Because the Cardano Constitution does not allow withdrawals from the Treasury that would violate the established NCL, this "2025 Net Change Limit Extension" serves the purpose of extending the previously established Net Change Limit for an additional eight (8) Epochs so that management of the Cardano Treasury will not be disrupted.
Motivation & rationale
We seek to have this Governance Action adopted so that the management of the Cardano Treasury will not be disrupted by the expiration of the current NCL.
Withdrawals from the Cardano Blockchain Treasury that would cause the Treasury balance to violate the applicable NCL are not permitted under Article IV, Section 3 of the Cardano Constitution and the Treasury Guardrails. Because the "2025 Net Change Limit" explicitly states that its term ends at the close of Epoch 604, any Treasury Withdrawal Governance Action (TWGA) that relies on that NCL must be both ratified and enacted before that point. Given the one-epoch enactment delay for Treasury Withdrawals, where a Governance Action that is ratified at one Epoch boundary is only enacted and paid out at the next Epoch boundary, the last Epoch in which such a TWGA may validly be ratified is Epoch 603 (ending 30 December 2025). Any TWGA ratified in Epoch 604 could not be enacted until the Epoch 605 boundary, after the current NCL term has expired, and therefore cannot be constitutionally authorized under that NCL.
As agreed with the Cardano Budget Committee of Intersect MBO, the original 2025 NCL was to begin at the start of Epoch 532 and progress for 72 epochs, concluding at the end of Epoch 604 - which is 4 January 2026. It should be noted that there was a typographical error in the original 2025 NCL GA that said it would last until 30 December 2025, but the Constitutional Committee at that time accepted 4 January 2026 as the actual ending date of the NCL because it is the conclusion of Epoch 604. The 2025 NCL was set at 350,000,000,000,000 lovelace (350M ada).
We propose that this previously established Net Change Limit be extended for additional eight (8) Epochs, so that it will now end at the conclusion of Epoch 612 (8 February 2026). All previous spending will continue to be counted so that the original limit socialized and agreed upon by the Cardano Community will not be exceeded.
This limit shall be applied in assessing budget actions and treasury withdrawal actions to ensure compliance with Article IV of the Cardano Constitution and the Treasury Withdrawal Guardrails specified in Appendix I.
The provisions set forth in the Cardano Constitution state that the approval of a Net Change Limit requires a threshold of greater than 50% of the active voting DRep stake. Therefore, this extension of the 2025 Net Change Limit for an additional eight (8) Epochs will be considered passed if it receives DRep support greater than 50% of the Active Governance State and the Constitutional Committee deems it to be Constitutional.
2025 Net Change Limit
Epochs 532 to 612Rationale highlights
Why some of the largest DReps voted for and against, in their own words.
Summary Yoroi DRep votes YES on the 2025 Net Change Limit Extension Info Action. We support this as a necessary measure to ensure that ongoing Treasury processes remain uninterrupted and constitutionally compliant. Rationale Critical Integrations Budget...
Summary
Yoroi DRep votes YES on the 2025 Net Change Limit Extension Info Action. We support this as a necessary measure to ensure that ongoing Treasury processes remain uninterrupted and constitutionally compliant.
Rationale
Critical Integrations Budget timing
The Net Change Limit (NCL) sets a withdrawal limit for the Cardano treasury over a defined period, and the current NCL expires at the conclusion of Epoch 604. Extending it by eight epochs will help keep the current limit active long enough for the Critical Integrations Budget to be enacted within the budget that the community has approved, rather than being pushed into the next NCL period.
Maintaining the treasury safeguard
The extension does not raise or reset the ₳350M limit. It only extends the timeframe, with prior spending still counted inside the same ceiling. This keeps treasury discipline exactly as the community approved it.
A healthy governance collaboration
Yoroi gives credit to the proposers for moving quickly on this on-chain safeguard. It reflects a strong alignment between the founding entities and the community, showing that we support each other when governance requires a timely bridge.
Conclusion
Yoroi DRep supports this extension because it upholds the Critical Integrations Budget timeline, maintains the current NCL cap, and demonstrates healthy governance collaboration. Therefore, we vote YES.I am voting YES for the "2025 Net Change Limit Extension" for two reasons: Given the overwhelming approval rate for the current "Cardano Critical Integrations Budget," extending the NCL a little will help the ecosystem. It may also have the effect of easing...
I am voting YES for the "2025 Net Change Limit Extension" for two reasons:
Given the overwhelming approval rate for the current "Cardano Critical Integrations Budget," extending the NCL a little will help the ecosystem. It may also have the effect of easing some of the time pressure on DRep and CC decisions.
This does not change the already approved NCL amount, but merely extends its period, so I do not believe it will lead to a relaxation of financial discipline.
次の二点の理由により、「2025 Net Change Limit Extension」にYESを投票します。
- 現在の「Cardano Critical Integrations Budget」への圧倒的賛成率を考慮すると、NCLを少し延長することはエコシステムを助けることになるでしょう。DRepやCCの判断へのタイムプレッシャーを多少緩和する効果もあるかもしれません。
- これは、すでに承認済みのNCL金額の変更はなく、その期間の延長ですので、財務規律が緩むと思いません。
I do not agree with setting a precedent that we will just change the financial calendar any time we want to squeeze money out of the NCL. The world will not end if this goes through in Jan/Feb. Also market wise, we may get better prices in a bear market....
I do not agree with setting a precedent that we will just change the financial calendar any time we want to squeeze money out of the NCL. The world will not end if this goes through in Jan/Feb. Also market wise, we may get better prices in a bear market. Delaying may get us better deals. These acrobatics are too stressful.
Vote: NO Why: The NCL extension just gives the 70 M request by the founding entities more breathing room. It doesn’t fix the missing breakdown, the founding entities’ track‑record, or the confidentiality clauses that hide how the money will actually be...
Vote: NO
Why:
The NCL extension just gives the 70 M request by the founding entities more breathing room. It doesn’t fix the missing breakdown, the founding entities’ track‑record, or the confidentiality clauses that hide how the money will actually be spent. In fact, a longer window makes it easier for a shaky proposal to slip through, so I see it as a net‑negative for the 70 M plan.Extending the deadline only prolongs the risk of a poorly justified withdrawal. If the treasury can’t commit to a transparent, well‑justified spend, giving it more time isn’t a good trade‑off.