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Net Change Limit (Epoch 613 to Epoch 713)

System8mo ago1 post
DReps 160SPOs 55CC 7

4 of 7 committee members voted

  • Ace Alliance71aa5b3a…8f04
    YesActive · term ends epoch 726Rationale

    Ace Alliance finds the proposed “Net Change Limit (Epoch 613 to Epoch 713)” Governance Action Constitutional.

    A PDF version of this rationale is also made available.

    This Info Governance Action proposes establishing a Net Change Limit ("NCL") for the Cardano Treasury of 350 million ada between the beginning of Epoch 613 (13 February 2026) and the end of Epoch 713 (3 July 2027). Its purpose is to seek DRep consensus on this limit, which serves as a constitutionally mandated prerequisite (per Article II(7)(3) and Guardrails TREASURY-01a/02a) for subsequent treasury withdrawal actions.

    The proposal's definition of the NCL as a cap on total withdrawals aligns with Defined Term 7 of the Constitution, which explicitly defines the "Net Change Limit" as "The maximum allowed amount or percentage of lovelace that may be removed from the Cardano Treasury in a given period". The proposal establishes this exact parameter ("350 million ada") for a specific period ("Epoch 613 to Epoch 713"), fulfilling the constitutional definition.

    Constitutional Alignment We find the proposal aligns with the constitutional framework:

    • Article II(6): The proposal fully meets procedural standards. It provides comprehensive metadata linked via an immutable IPFS address (ipfs://bafkreidpcmogdet4beysyxq4u7l2qywplbfnahudyevqjcu2yxiceurn3u) with a verified hash, maintaining best practices in governance transparency and verifiability.
    • Article II(7)(3) and Appendix I, Guardrails TREASURY-01a/02a: This proposal directly addresses the mandate to set a Net Change Limit. Article II(7) confirms that Treasury Withdrawals "must not exceed the Net Change Limit for that period," making this action a necessary governance step before future treasury withdrawals can occur.
    • Article III(1)(4): This proposal appropriately uses the Info Action mechanism. This section clarifies that the Constitutional Committee is limited to voting on the constitutionality of governance actions, "including any proposed or contemplated actions contained within 'Info' actions". Our 'Yes' vote reflects a positive opinion on the constitutionality of establishing this specific NCL for the stated period.

    Due to its adherence to constitutional provisions, this Info Action is Constitutional.

  • Cardano Japan Council725d4d44…7b31
    YesExpired · term ends epoch 653Rationale

    We consider this governance action to be constitutional.

    This governance action establishes a Net Change Limit (NCL) as a prerequisite for treasury withdrawals, in accordance with the requirements of Article II, Section 7 of the amended Cardano Constitution. The proposal clearly specifies the applicable period, the maximum withdrawal amount, as well as the methodology for calculation and application. It does not approve any specific treasury withdrawal, but instead defines an upper limit to be used when assessing future treasury withdrawal governance actions. In these respects, we find no elements that conflict with the Cardano Constitution. For these reasons, we determine that this governance action is constitutional.

    For the reasons stated above, we determine that it is constitutional.

  • KtorZ64f97568…3a49
    YesExpired · term ends epoch 653Rationale

    LGTM

    The proposal indeed qualifies as a Net Change-Limit (NCL) and shall be recognised as such if the proportion of "yes" votes has reached 50%+ of the drep voting stake distribution upon expiry.

  • Tingvard646d1b3a…be43
    YesActive · term ends epoch 726Rationale

    Tingvard judges this governance action constitutional.

    This governance action establishes a new Net Change Limit (NCL) for the Cardano Treasury covering the period from the start of Epoch 613 through the conclusion of Epoch 713. Under Article II of the Cardano Constitution, treasury withdrawals that would cause the treasury balance to violate the applicable Net Change Limit are not permitted. A valid NCL must therefore be in effect for any treasury withdrawal governance action to be constitutionally enacted.
    The proposal clearly defines both the numerical limit and the period of time to which it applies. The specified limit of 350,000,000,000,000 lovelace preserves continuity with previously adopted Net Change Limits, while the defined epoch range satisfies the constitutional requirement that a Net Change Limit apply to a specific period of time. Article II imposes no restriction on the length of such a period, requiring only that the limit exist and be respected.
    The rationale for the chosen timeframe is well explained. By realigning the NCL cycle away from year-end holidays and toward a mid-year cadence, the proposal aims to improve governance participation and analytical clarity. Ensuring that a complete year of treasury inflow data is available before setting a subsequent NCL strengthens fiscal modeling and supports informed decision-making, which is consistent with the intent of the treasury guardrails.
    The proposal’s calculation methodology is transparent and grounded in historical treasury inflows. Setting the limit at approximately 115% of realized net income accounts for previously approved budgets while maintaining a conservative overall cap. Incorporating existing approved but not yet withdrawn allocations respects prior DRep decisions without authorizing any additional spending beyond the stated limit.
    The governance action satisfies the procedural requirements by providing a clear, legible explanation of purpose, scope, methodology, and effect, supported by references. It also correctly identifies the applicable voting threshold, requiring approval by more than 50% of the active voting DRep stake, as specified in the Treasury Guardrails.
    By establishing a clearly defined and forward-looking Net Change Limit, this action ensures uninterrupted constitutional compliance for treasury withdrawals during the specified period and avoids ambiguity in fiscal governance.

    Tingvard judges this governance action constitutional. It satisfies the requirements set forth in the Cardano Constitution and ensures a clearly defined, enforceable Net Change Limit for the specified period. The structure, methodology, and purpose of the proposal are fully aligned with the constitutional framework governing treasury operations.

  • Cardano Curia84feba94…6bd5
    Not votedActive · term ends epoch 799No rationale
  • Eastern Cardano Council4a822702…3d76
    Not votedActive · term ends epoch 726No rationale
  • Phil_uplc68bb0b42…8746
    Not votedActive · term ends epoch 799No rationale