Set a 300 million ADA Net Change Limit for Epochs 563–635
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
Set a 300 million ADA Net Change Limit for Epochs 563–635 ---- > 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 Net Change Limit (NCL) action and its constitutionality. The current situation requires that an NCL be established, as there is no existing NCL set for the relevant period. Establishing an NCL is a necessary and constitutional action under the governance framework. During review, no members identified any aspect of this proposal that would conflict with the Constitution. Several members noted that this is a required governance action to define the NCL for the specified period (until June 2026), and that such an action does not violate any constitutional provisions. One member abstained from fully endorsing or opposing the proposal but expressed the view that it is constitutional in nature. Some members further clarified that while the proposal’s specific value of 300 million ADA is a matter to be decided by DReps, this does not affect the constitutional compliance of the governance action itself. The act of setting an NCL is, by definition, constitutional and necessary for Treasury operation under the current governance model.
the majority of members agree that this governance action is constitutional and necessary to establish the required NCL for the defined term.
- 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) meets the criteria outlined in Article III, Section 5 of the Cardano Constitution. As a result, the proposer concludes that the proposal is in compliance with the Constitution.
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 proposed governance action to establish a Net Change Limit (NCL) of 300 million ada epochs 563-635 via an "Info" action to be constitutional in its procedure and intent. The Cardano Constitution mandates the establishment of an NCL by the community through such an action prior to Treasury withdrawals. This proposal adheres to that process.
The Cardano Constitution requires that a Net Change Limit (NCL) be established before withdrawals from the Cardano Treasury can occur that would affect the treasury balance beyond this limit (Article IV, Section 3). The designated mechanism for the community to agree upon an NCL is an on-chain "Info" action (Article III, Section 4; Appendix I, TREASURY-01a).
This governance proposal seeks to set an NCL of 300 million ada for the period covering epochs 563 to 635. This procedure aligns with the constitutional requirements. The stated motivation for this NCL is to support longer-term budgeting extending into 2026, ensuring continuity for Treasury-funded projects. Furthermore, the proposal notes that the 300M ada NCL is in line with expected Treasury inflows during the specified period, which demonstrates consideration for Tenet 8: "The Cardano Blockchain shall not unreasonably spend resources".
Therefore, the IOG ICC seat views the act of proposing this NCL via an "Info" action as a necessary and constitutionally sound procedure to facilitate future governance over Treasury withdrawals.
The IOG ICC seat encourages robust community discussion and DRep scrutiny regarding the specific amount and duration of any NCL proposal. While this rationale confirms the procedural constitutionality, the ultimate approval and specific terms of the NCL rest with the ada holders through their delegated representatives.
- Intersect Constitutional Council85c47dd4…bf64YesExpired · term ends epoch 580Rationale
The Intersect Constitutional Council votes that the net change limit info action, “637e3c256da9c1...eb73#0”, to be constitutional.
The net change limit info action adjusts the currently approved net change limit (NCL) window from January-December 2025 and proposes a 12-month duration from June 2025 to June 2026 in order to account for the time already passed in 2025. It is a proposal to set the net change limit to 300 million ada. Due to the fact that no treasury withdrawals have taken place against the currently approved net change limit, this makes evaluating this revision slightly more straightforward than if the ecosystem were already part-way through an agreed NCL with active budgets and treasury withdrawals.
The proposal meets the standardized and legible format requirements as outlined in Article III Section 5. The rationale contains a title, abstract, reason for the proposal and relevant supporting materials, meeting the minimum requirements of Article III Section 5.
The proposal also provides a clear, unambiguous timeline for its proposed NCL, does not confuse the situation by attempting to reiterate or declare its own vote threshold and clearly delineates that passing this proposal would replace any previously accepted proposal. All of these measures help to provide open and transparent conditions by which ada holders can vote.
The Intersect Constitutional Council votes that the 300M ada net change limit info action is constitutional.
- 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 "637e3c256da9c1...eb73#0" and title "Set a 300 million ADA Net Change Limit for Epochs 563–635", 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.