March 27, 2025
Intersect Cardano Budget Committee AMA: Top 10 Questions & Answers
Note: The following article recaps the primary questions asked and answered during the Intersect Cardano Budget Committee AMA on 27 March 2025. Names have been generalized for clarity and questions have been summarized for readability.
Introduction
On 27 March 2025, the Intersect Cardano Budget Committee hosted an open AMA to discuss critical governance topics, new Treasury spending proposals, and community concerns around transparency and decision-making. Chaired by Lloyd Duhon, Intersect Cardano Budget Committee Secretary, the discussion featured multiple community members who raised questions about the net change limit proposals, the process behind budgeting, and the upcoming membership meeting. Below are the top 10 questions asked during the session, along with succinct answers drawn from the conversation.
1. Why was a membership meeting requested at Intersect, and what prompted it?
Answer
Several community members felt that recent leadership decisions (referred to as a “hard and fast pivot”) were made without thorough community input. They organized a petition to formally request a membership meeting so all voices could be heard. According to the AMA, the request was successful, a meeting date was announced, and the aim is to foster clarity and transparency among Intersect’s executive team and membership.
2. When will the newly submitted budget proposals be released, and where can the community find them?
Answer
Intersect has been finalizing proposals submitted through a new form, with a target release date set for the Monday after the AMA. Once published, these documents will be shared via official Intersect channels (e.g., Discord) and made available for community review. Participants were encouraged to attend or watch upcoming AMA sessions for additional clarifications.
3. How do multiple net change limit proposals interact if more than one is approved?
Answer
Community participants introduced separate net change limit proposals—rules that define how much can be withdrawn from the Treasury in a given year. If two or more proposals pass, only one can actually govern the withdrawals at a time. Typically, the newer or second limit supersedes the earlier one. However, the Constitutional Committee has the ultimate authority to interpret and decide on any overlapping rules.
4. What was the “pivot” that left some community members feeling unheard?
Answer
The “pivot” referred to a shift in how leadership handled budgeting and governance decisions, potentially reducing avenues for broader community input. Participants felt some decisions were made quickly and without a sense of inclusive discourse. During the AMA, it was acknowledged that balancing diverse opinions under time constraints can be challenging, and that more transparent, open dialogue—such as the membership meeting—is critical for addressing concerns.
5. Why does Intersect propose basing net change limits on the previous year’s Treasury income?
Answer
Intersect’s Budget Committee suggested that spending only what was earned in the previous year (“living within our means”) reduces the risk of forecasting errors. Rather than rely on uncertain future income, the approach uses the verifiable amount of ADA minted or accrued in the preceding year. This mitigates potential overspending and promotes prudent Treasury management.
6. How can community members contribute if they cannot attend live AMAs or meetings?
Answer
For those unable to join live sessions, the AMA pointed to several asynchronous options:
- Intersect Discord: The central hub for updates, where members can post questions and receive answers from committee leads.
- Committee Channels & Archives: Meeting minutes, recordings, and summaries are typically shared so people can catch up at their convenience.
- Direct Inquiries: Specific committees (Budget, Product, Open Source) can be contacted for deeper engagement.
7. In what ways do net change limits influence which proposals get funded?
Answer
A net change limit enforces an upper cap on Treasury withdrawals. Any proposal (or collective proposals) that would exceed that cap in a given year would not be approved. This threshold encourages prioritizing high-impact initiatives, especially those demonstrating potential to bring long-term value or foster transaction growth within Cardano. By design, it prevents unfettered spending and safeguards the ecosystem’s financial health.
8. How do projects contribute to Cardano’s sustainability and on-chain usage?
Answer
Speakers during the AMA emphasized that meaningful proposals should aim to increase the chain’s transaction volume. This could include DApps, developer tools, or platforms that draw more users to Cardano. With block rewards scheduled to decrease over time, higher transaction volume becomes essential to maintaining the Treasury via fees and supporting staking rewards.
9. What actions are being taken to improve governance transparency at Intersect?
Answer
Intersect has introduced:
- More Frequent AMAs & Office Hours: To allow real-time Q&A and direct engagement.
- Published Minutes & Recordings: Ensuring a documented trail of decisions.
- Educational Resources & FAQs: Plans are underway to develop clearer guides to explain net change limits, budget cycles, and the Constitutional Committee’s role.
These steps aim to alleviate confusion and include more stakeholders in decision-making.
10. How can community members become directly involved in the budget process?
Answer
- Join the Intersect Discord: Engage with committee representatives, track announcements, and ask questions.
- Attend/Review Committee Sessions: Budget, Product, and Open Source committees each hold their own office hours and share updates.
- Submit Proposals or Feedback: When new budget forms are open, community members can present ideas for funding or suggest improvements to ongoing initiatives.
- Volunteer Expertise: Whether in finance, community management, or software, skilled contributors can support the ecosystem’s growth.
Final Thoughts
The 27 March 2025 AMA highlighted the community’s growing desire for transparent governance, fiscal responsibility, and inclusive dialogue around Cardano’s next phase of development. With multiple committees working to refine proposals, the conversation underscored the importance of proactive community engagement—both to inform decision-makers and to sustain Cardano’s Treasury in the years ahead.
For more details, including upcoming AMA sessions, membership meeting logistics, and proposal releases, visit the Intersect Discord or follow official Intersect announcements. Your participation is vital to shaping Cardano’s future!