Withdraw 3,810,423 ada for Mithril Protocol
7 of 7 committee members voted
- Ace Alliance71aa5b3a…8f04YesActive · term ends epoch 726Rationale
Ace Alliance finds the proposed "Withdraw 3,810,423 ada for Mithril Protocol" Treasury Withdrawals Governance Action constitutional. Rationales are archived at https://github.com/ace-alliance/ace-voting/
A PDF version of this rationale is also made available.
"Withdraw 3,810,423 ada for Mithril Protocol" (gov_action1k02...4l0u4y) is a Treasury Withdrawals Governance Action and is therefore governed by both the general proposal standards in Article II, Section 6 and the additional Treasury Withdrawal standards in Article II, Section 7 of the Cardano Constitution. The Action seeks to withdraw 3,810,423 ada from the Cardano Treasury to fund continuous development of the Mithril protocol. The vendor is Teragone, which has contributed to Mithril's development, maintenance, and evolution for several years in close collaboration with Input Output Global. The Action was submitted by Intersect on behalf of the vendor, with Intersect serving as administrator under its 2026 Treasury Reserve Smart Contract framework. The underlying proposal was socialized and approved off-chain through the Cardano Budget Process led by Intersect before being submitted on-chain.
Article II.6's procedural standards are satisfied. The action anchors to an IPFS-hosted document with the on-chain blake2b-256 hash c8700afb0a090e80de6e3924e97b160ea174ecab35bfe2d786ad26c47cd1a0fb, a content-addressed form that is immutable once posted, and the metadata supplies the title, abstract, motivation, rationale, budget summary, and supporting references that Article II.6.2 requires. Article II.7.1's terms-of-withdrawal requirement is met by the proposal's specification of purpose, a continuous-development delivery plan with milestone-based disbursement, itemized costs (3,699,440 ada for Mithril protocol continuous development plus a 110,983 ada Intersect budget administration fee), and the disbursement and return mechanics of the Treasury Reserve Smart Contract framework, under which funds are released against milestones outlined in the metadata and undisbursed funds can be returned to the Cardano Treasury through the framework's Sweep action. Article II.7.2's disclosure requirement is satisfied: Teragone discloses that it has not previously received direct funding from the Cardano Treasury or community governance programs. Article II.7.3 is satisfied because the 3,810,423 ada requested here is well within the 350,000,000 ada Net Change Limit in force for the period spanning epochs 613 through 713, on its own and in aggregate with the other withdrawals pending at the time of submission.
Articles II.7.4, II.7.5, and II.7.6 are satisfied through the Intersect-administered Treasury Reserve Smart Contract pattern previously found constitutional by this Committee. Under Article II.7.5, the proposal designates Intersect as administrator, an entity other than the recipient vendor. Intersect operates the 2026 instance of the Sundae-Labs-developed TRSC framework, which mirrors the contracts used in the 2025 budget cycle, with a Project-Specific Smart Contract for this withdrawal. An Oversight Committee of six external, independent third-party entities provides the checks against unilateral administrative control, with explicit multi-signature authorization rules for each TRSC action type, including Fund, Disburse, Pause and Resume, Sweep, and Reorganize. A written off-chain Legal Contract governs delivery, and funds move to the Project-Specific Smart Contract only once that contract is prepared, with all milestones outlined within the metadata. Under Article II.7.4, audit and oversight costs are included within the overhead applied to the proposal, the Intersect administration fee covers administrative oversight, independent oversight is provided through Intersect and a technically capable third party with reporting obligations and milestone-based disbursement controls, and a public dashboard allows the community to audit TRSC and PSSC activity on-chain. Under Article II.7.6, the on-chain withdrawal destination is stake1784sdxt6jjennmstphgdu7l7c2scf5d02a6cve2dgn5s2kq5u3j9v, which is a script-locked stake address (CIP-19 mainnet header byte 0xf1), is not delegated to any stake pool, and is delegated to the predefined always-abstain DRep, each of which we verified on-chain at the time of this review.
Ace Alliance finds the proposed "Withdraw 3,810,423 ada for Mithril Protocol" Treasury Withdrawals Governance Action constitutional.
- Cardano Curia84feba94…6bd5YesActive · term ends epoch 799Rationale
Cardano Curia finds the Treasury Withdrawal for Mithril Protocol constitutional.
What is being proposed
This Treasury Withdrawal funds continued development and maintenance of the Mithril protocol. The requested amount is 3,810,423 ada.
Constitutional assessment
Cardano Curia reviewed this action as a Treasury Withdrawal under the Constitution's governance-action standards and treasury-withdrawal requirements. The relevant requirements include a clear purpose and delivery period, disclosure of costs and refund circumstances, prior-funding disclosure, compliance with the applicable Net Change Limit, funded independent audit and oversight, designated administrators, and segregated auditable accounts delegated to the predefined abstain option while held before disbursement.
Mithril contributes to efficient, verifiable Cardano state and data access. The proposal is directed to defined technical work and is administered under the same segregated, auditable Intersect framework.
The action is also consistent with the constitutional tenets concerning fair treatment, reasonable use of blockchain resources, recognition of ecosystem contributions, preservation of value, and long-term sustainability, provided that the published administration, reporting, audit, milestone, and return-to-treasury commitments remain binding throughout execution.
Determination
Cardano Curia finds the action constitutional. This is a determination of constitutional compliance, not a guarantee of delivery performance or financial return.
Cardano Curia finds governance action b3d452bff7769d...0ccf#5 constitutional and records five internal votes for constitutional, with no votes for unconstitutional or abstain.
- Cardano Japan Council725d4d44…7b31YesExpired · term ends epoch 653Rationale
We consider this governance action to be constitutional.
This proposal is a Treasury Withdrawal Governance Action to withdraw ₳3,810,423 from the Cardano Treasury in connection with the proposal "Withdraw 3,810,423 ada for Mithril Protocol," submitted by Teragone Factory. This proposal met the 67% support threshold required during the Hydra voting phase of the 2026 Intersect budget process and has proceeded to the submission of an on-chain Treasury Withdrawal Governance Action in accordance with the approved budget process framework. This proposal references the proposal document on IPFS and presents the proposal's title, summary, rationale, justification, and related supporting materials. These comply with the requirements of Article 2, Section 6, Paragraphs 1 and 2 of the Cardano Constitution. Regarding Article 2, Section 7, Paragraph 1, this proposal aims to support the continued development of the Mithril Protocol, and the supporting materials specify an implementation period of six months. It also provides a breakdown of costs, including ₳3,699,440 for the continued development of the Mithril Protocol and ₳110,983 for Intersect's budget management fees. Furthermore, the proposal states that if a significant portion of the allocated funds is not used during the project, it will be returned to the Cardano Treasury; and if a surplus arises relative to the initial budget due to a significant increase in the price of ADA, a fair portion of that surplus will be returned. Regarding Article 2, Section 7, Paragraph 2, Teragone discloses that it has not previously received direct funding from the Cardano Treasury or community governance programs. Furthermore, regarding the Mithril project, it discloses that it has been involved through collaboration with Input Output Global (IOG) and that the project has been funded by IOG. Regarding Article 2, Section 7, Paragraph 3, it has been confirmed that the requested amount of ₳3,810,423 falls within the ₳350,000,000 Net Change Limit covering Epochs 613 through 713. Regarding Article 2, Section 7, Paragraph 4, this proposal includes audit and oversight costs within the overhead applied to the proposal and states that the Intersect budget management fee covers administrative oversight. It also outlines independent oversight by Intersect and third parties with technical expertise, reporting obligations, and milestone-based disbursement controls. The supplementary materials state that Dquadrant will conduct independent verification of key deliverables and confirm compliance with expected standards regarding security, correctness, and robustness prior to milestone acceptance. Regarding Article 2, Section 7, Paragraph 5, Intersect is designated as the administrator. Furthermore, the main text of the Governance Action (GA) outlines a framework in which Intersect manages the Treasury Reserve Smart Contract (TRSC) and the Project-Specific Smart Contract (PSSC), while an Oversight Committee composed of external, independent third parties supervises specific management activities. Regarding Article 2, Section 7, Paragraph 6, it is stated that upon enactment of this governance action, funds will be directed to the TRSC's stake address; after being withdrawn to the UTxOs remaining in the TRSC's payment address, they will be transferred to the PSSC via a Fund Action once the legal contract is prepared and the vendor is ready. It also states that the community can audit TRSC or PSSC through the dashboard, track metrics related to the withdrawn ADA, and verify this information immutably on-chain. Furthermore, it is stated that the TRSC and PSSC cannot be staked with an SPO and are delegated to the predefined auto-abstain DRep. Therefore, as no clear conflict with the Cardano Constitution has been identified, this proposal is deemed constitutional.
For the reasons stated above, we determine that it is constitutional.
- KtorZ64f97568…3a49YesExpired · term ends epoch 653Rationale
Ok
A PDF version of this rationale is also made available.
The proposal funds the continued development of Mithril, a core Cardano infrastructure component that enables efficient and trustless verification of state using stake-based threshold multi-signatures. It therefore presents a clear case for advancing the long-term sustainability of Cardano under Article I - Section 1.
The proposal identifies an administrator, discloses previous funding arrangements, specifies audit and oversight mechanisms, defines custody through dedicated treasury management smart contracts, provides transparent on-chain administration, and states (effective) compliance with the applicable Net Change Limit.
An important note, however, is that even though Teragone as a company has seemingly not received direct funding from the treasury in the past; Mithril as a project has received funding in 2025 through IOG's "Withdraw ₳96,817,080 for 2025 Input Output Engineering Core Development Proposal" ( https://explorer.cardano.org/governance-action/gov_action13tfag48nf94rtjcdq7c06vhkslmxxw9h6c88sl7q5g5nnewcsvlqz6d98zp ). While the proposal acknowledge receiving funding from IOG in the past, a more complete disclosure under the "Prior Treasury Funding Disclosure" section would have benefited from explicitly acknowledging this distinction.
Despite this lack of clarity, I do not believe this is sufficient to qualify as a constitutional violation given that prior funding sources are still effectively mentioned. I therefore consider the proposal constitutionally compliant.
- Phil_uplc68bb0b42…8746YesActive · term ends epoch 799No rationale
- Tingvard646d1b3a…be43YesActive · term ends epoch 726Rationale
Tingvard judges the “Mithril Protocol” Treasury Withdrawal governance action constitutional.
This governance action requests 3,810,423 ADA from the Cardano Treasury to fund continued development of the Mithril Protocol.
The proposal identifies the purpose of the withdrawal, the amount requested, and the intended scope of work. It states that Mithril provides stake-based threshold multi-signature infrastructure for fast, trustless verification of Cardano state, reducing reliance on slow full-node synchronisation or centralized light-client infrastructure.
The proposal discloses that Teragone has not previously received direct funding from the Cardano Treasury or community governance programs, while also explaining its prior involvement in Mithril through IOG-funded work.
The proposal states that the requested amount does not, at the time of submission, breach the applicable 350M Net Change Limit covering epochs 613 to 713.
The proposal identifies Intersect as administrator and states that treasury funds will be managed through the 2026 Treasury Reserve Smart Contract and a Project-Specific Smart Contract.
The proposal includes an oversight structure. Intersect will administer the TRSC and PSSC, while an Oversight Committee consisting of Sundae Labs, Cardano Foundation, Dquadrant, NMKR, Sundial, and Eternl will provide checks and balances on certain administrative actions.
The proposal addresses custody and delegation. It states that the TRSC and PSSC cannot be staked with an SPO and are delegated to the auto-abstain predefined DRep.
The proposal includes audit and oversight provisions. It states that audit and oversight costs are included in the proposal overhead, that independent oversight will be provided through Intersect and a technically capable third party, and that reporting obligations and milestone-based disbursement controls will apply.
The proposal also states that a public dashboard is available for the community to audit the TRSC or PSSC and track metrics related to the withdrawn ada.
Tingvard therefore finds that the proposal satisfies the relevant requirements for a Treasury Withdrawal governance action.
Tingvard finds the “Mithril Protocol” Treasury Withdrawal governance action constitutional.
- Eastern Cardano Council2ea7a78e…10ecNoActive · term ends epoch 726Rationale
We have determined that this treasury withdrawal governance action is unconstitutional.
The governance action with ID “gov_action1k02...4l0u4y” and title “Withdraw 3,810,423 ada for Mithril Protocol” is a Treasury Withdrawal, so is subject to ARTICLE II, Section 7 of the Cardano Constitution. While most of the requirements under this section were met by this governance action, it did not fulfil all the requirements under ARTICLE II, Section 7(1).
ARTICLE II, Section 7(1) states ""Treasury Withdrawals" actions must specify the terms of the withdrawal. This shall include: the purpose of the withdrawal, the period for delivery of proposed activities which the withdrawal shall be used for, the relevant costs and expenses of the proposed activities, circumstances under which the withdrawal might be refunded to the Cardano Treasury."
The governance action does not specify "the purpose of the withdrawal", "the period for delivery of proposed activities which the withdrawal shall be used for" or "circumstances under which the withdrawal might be refunded to the Cardano Treasury."
We therefore find this governance action Unconstitutional.
This governance action does not sufficiently fulfil the criteria specified for treasury withdrawals in the Cardano Constitution, so is deemed unconstitutional.