Set a 300 million ADA Net Change Limit for Epochs 563–635
On-chain changes
Informational action. No on-chain effect; the vote signals opinion only.
Abstract
The Cardano Constitution, at Article IV, Section 3, requires that before withdrawal of Treasury funds, the community must have established a Net Change Limit (NCL). This means passing a NCL in a formal on-chain governance info action. The NCL represents the maximum amount of ada which may be withdrawn from the Cardano Treasury in a given period. We believe that the NCL covering the period from the start of epoch 563 to the end of epoch 635 should be 300M ADA.
Motivation & rationale
Existing and pending NCLs only cover periods through the end of 2025. However, many current and upcoming budget proposals are structured around 12-month timelines, extending into 2026. To support such proposals, a new NCL is needed that covers part of the 2026.
We believe that the NCL covering the period from the start of epoch 563 to the end of epoch 635 should be 300M ADA. Due to delays in the budget process, some proposals may be approved after June 2025. Since many budgets span approximately 12 months, defining the NCL for a similar period ensures continuity in Treasury-funded activities. 300M ADA is close to the expected inflow into the Treasury during this period. A 'yes' vote on this proposal means agreeing to the proposed NCL, which will replace any previous NCL if approved.
Rationale highlights
Why some of the largest DReps voted for and against, in their own words.
Summary Yoroi, as a DRep, votes No on this Info Action regarding the setting a 300 million ADA Net Change Limit for Epochs 563–635 (637e3c256da9c1350847ca3211e8c44e3660a4471e8b6f68a8c537746b4aeb7300). Rationale As Yoroi previously voted in favor of the 2025...
Summary
Yoroi, as a DRep, votes No on this Info Action regarding the setting a 300 million ADA Net Change Limit for Epochs 563–635 (637e3c256da9c1350847ca3211e8c44e3660a4471e8b6f68a8c537746b4aeb7300).
Rationale
As Yoroi previously voted in favor of the 2025 Net Change Limit (9b62b3c632f329016a968ac25211825bb4f84b12461121c7da3aa11df92370f900) proposed by Intersect, we will continue to align with that voting stance.I will vote YES on both of the next two GAs. 200 M ADA NCL for 2025 300 M ADA NCL for 2025 3Q- 2026 2Q Because I think the following order is good, in which case it would be reasonable to vote YES for both: 300 M ADA NCL for 2025 3Q- 2026 2Q 200 M ADA NCL...
I will vote YES on both of the next two GAs.
200 M ADA NCL for 2025
300 M ADA NCL for 2025 3Q- 2026 2QBecause I think the following order is good, in which case it would be reasonable to vote YES for both:
- 300 M ADA NCL for 2025 3Q- 2026 2Q
- 200 M ADA NCL for 2025
- 350 M ADA NCL for 2025（now）
The approach of determining spending based on inflows has been well-received by the community.
The 350M ADA NCL is too large for the second half of 2025 alone.
The 200M ADA NCL may be appropriate for the second half of 2025 alone, but many of the current Cardano budget proposals are expected to cover a 12-month period, i.e., up to mid-2026. From that perspective, it seems insufficient without a separate NCL for 2026.
Therefore, I would vote YES on both and recommend setting the 2026 NCL in the case where the 200M ADA NCL is approved and the 300M ADA NCL is rejected.
But personally, I think it would be better to set it as 3Q2025-2Q2026, rather than setting separate NCL 2025 and NCL 2026. This is easier to manage, since most of the Cardano budget work will probably be set in 3Q2025-2Q2026.
私は次の2つのGAの両方に賛成票を投じます。
200 M ADA NCL for 2025
300 M ADA NCL for 2025 3Q- 2026 2Q以下の順序が良いと考えているため、両方に賛成票を投じるのが妥当です。
①300 M ADA NCL for 2025 3Q- 2026 2Q
②200 M ADA NCL for 2025
③350 M ADA NCL for 2025（now）流入額に基づいて支出額を決定するというアプローチは、コミュニティから支持を得ています。とすると、
③は2025後半だけを考えると流入に対して多すぎます。
②は、2025年後半のみに適用すると、妥当かもしれませんが、現在のCardano予算案の多くは12ヶ月間、つまり2026年半ばまでを対象としています。この観点からすると、2026年用のNCLを別途設定しなければ不十分であるように思われます。
したがって、私は両方に賛成票を投じ、②が承認され、③が却下された場合は、2026年のNCLを設定することを推奨します。
しかし、個人的には、2025年のNCLと2026年のNCLを別々に設定するよりも、2025年第3四半期から2026年第2四半期に設定する方が良いと考えています。Cardano予算作業の大部分は2025年第3四半期から2026年第2四半期に設定されると思われるため、管理が容易になります。
Summary As a DRep, EMURGO votes No on the Info Action titled Set a 300 million ADA Net Change Limit for Epochs 563–635. Rationale Repeatedly adjusting the cap could create delays in the governance process, which may prevent critical funding from reaching the...
Summary
As a DRep, EMURGO votes No on the Info Action titled Set a 300 million ADA Net Change Limit for Epochs 563–635.
Rationale
Repeatedly adjusting the cap could create delays in the governance process, which may prevent critical funding from reaching the necessary projects, ultimately slowing down Cardano’s development.
To conclude, 2025 Net Change Limit(9b62b3c632f329016a968ac25211825bb4f84b12461121c7da3aa11df92370f900), which was approved by the majority of DReps, represents the maximum possible withdrawal amount from the Treasury, but it’s not a fixed target that must be fully used. EMURGO believes this is a reasonable initial cap for the year.TL;DR: EDC voted YES on gov_action1vdlrcftd48qn2zz8egepr6xyfcmxpfz8r69k769gc5mhg662adesq9yy8pl. 300m NCL for the remainder of 2025 and the first half of 2026 should cover most proposal costs. A new NCL can be proposed in early 2026, if need be.