Budget Committee Public Meetings and AMAs Summaries

LloydDuhon · 21 February 2025 20:16

(February 13, 2025)

A New Chapter in Cardano Governance: Highlights from Intersect’s Budget AMA

On February 13, 2025, the Intersect Cardano Budget Committee hosted one of its regular AMA (Ask Me Anything) sessions via Zoom. The goal:

Gather community input on the very first Cardano blockchain budget,
Answer questions on the budget process itself, and
Offer clarity on important governance topics such as the net change limit, treasury guardrails, multi-year project funding, and more.

Below is a concise recap of the session, followed by the top ten community questions—and the answers provided—on how this first-ever budget is poised to shape Cardano’s future.

Session Overview

Date & Format: February 13, 2025, via Zoom (part of an ongoing series of AMA sessions).
Participants: A diverse group of community members, representatives from various Intersect committees—including the Technical Steering Committee (TSC), Civics, and Open Sourc Committee (OSC)—and other key contributors to Cardano’s governance.
Key Topics Discussed:
- The Net Change Limit proposal—a yearly cap on total ADA treasury withdrawals.
- Strategies to mitigate sudden liquidity events and avoid negative market impacts.
- The use of smart contracts (time-locks, milestone-based releases) to ensure responsible funds management.
- Ensuring multi-year continuity for major Cardano development initiatives.
- Handling unspent funds and balancing the treasury budget under various market conditions.

This AMA was part of a series that showcases Cardano’s commitment to inclusive, transparent governance. Below are the top ten most relevant questions and the succinct responses from the Intersect Budget Committee and additional panelists.

Looking Ahead

This February 13, 2025 AMA underlines Cardano’s dedication to transparent, inclusive governance. As on-chain voting becomes the new normal, community members—from stake pool operators to dReps and everyday ADA holders—have a unique opportunity to shape Cardano’s financial and developmental priorities.

Whether you’re passionate about fiscal prudence, eager to accelerate Cardano’s growth, or simply curious about the governance evolution, your voice is critical. Participate in discussions, submit feedback, and let your vote count when these proposals go on-chain.

Watch the full session here.

LloydDuhon · 21 February 2025 20:30

(February 18, 2025)

Title: Intersect Cardano Budget Committee AMA Recap – Community Questions & Key Takeaways

On February 18, 2025, the Intersect Cardano Budget Committee hosted an open “Ask Me Anything” session via Zoom. This AMA aimed to gather community input and respond to questions regarding the first-ever Cardano budget proposal. Below is a concise recap of the top 10 questions raised during the session—along with the Committee’s answers, key insights, and next steps.

1. What recent changes have been made to the Budget Document?

Question:
A participant asked for a quick overview of notable updates in the dynamic budget document.

Answer (Lloyd & Tex):

Committee-Specific Revisions: Each committee (TSC, OSC, Growth & Marketing, Membership & Community, etc.) is refining their sections based on community feedback. MCC (Membership & Community Committee) has been especially active in releasing “versioned” updates.
Timeline for Next Version: The Budget Committee intends to consolidate community feedback and publish the next version of the overall budget soon.
Purpose of Revisions: Most changes aim to clarify budget items and their scope, adjust priorities, and ensure alignment across committees.

Key Takeaway:
All committees continue to revise their budgets. Active community engagement through the Cardano Forum and Discord is critical to shaping these updates.

2. What are the biggest challenges and risks to getting the budget approved?

Question (Felix):
What do you see as the main hurdles for the budget’s successful approval?

Answer (Lloyd & Chris):

Transition to Public Procurement: Cardano is moving from a corporate-style procurement approach to a fully public, on-chain process. This transition introduces a “political” dimension where all stakeholders—community members, stake pool operators (SPOs), and Delegated Representatives (DReps)—must learn how to collaborate in a transparent manner.
Complex Coordination: Multiple committees and community members must align on funding priorities, project timelines, and synergy across initiatives—avoiding overlap or duplication.
Maintaining Long-Term Vision: Ensuring Cardano remains innovative and secure requires careful spending on necessary items (“broccoli”) rather than only funding quick wins (“cake”).

Key Takeaway:
Governance on a public blockchain requires broad consensus, strong coordination, and a willingness to balance immediate needs with Cardano’s long-term vision.

3. How will the community handle budget reallocation between line items or committees during the year?

Question (Martin):
What if we need to move funds from one budget item (or committee) to another mid-year?

Answer (Lloyd & Lawrence):

Within the Same “Bucket”: Each committee has a list of priorities within its own “bucket” (e.g., TSC, OSC, Growth & Marketing). If one item ends up costing less than anticipated, leftover funds can be used for the next highest-priority item in that same bucket.
Between Different Buckets: If a committee determines that resources need to be transferred to another committee’s bucket, both committees must agree. For anything significant or potentially contentious, an “info action” or an on-chain vote may be used to seek DReps’ explicit approval.
Quarterly Summits & Reports: The budget includes quarterly “Budget Summits.” These gatherings—live or virtual—allow committees to report on spending, propose reallocations, and gather DRep/community feedback before making final decisions.

Key Takeaway:
Proposed reallocation will use transparent governance procedures involving both committees and DReps.

4. How does multi-year budgeting work for projects that extend beyond 2025?

Question (Nana):
Some proposals suggest a scope longer than a few months—possibly into next year. How is that handled?

Answer (Lloyd):

Explicit Duration & Priority: Each budget line item should indicate whether funding is for three months, six months, or a full year. If it extends beyond one year, that needs to be clearly stated so voters grasp the long-term implications.
Annual Review Cycle: While Cardano will eventually refine multi-year funding models, the immediate priority is ensuring the 2025 budget cycle is clear. Moving forward, the Committee intends to improve multi-year planning so large, ongoing projects can receive steady funding with community oversight.

Key Takeaway:
Longer-term budget items will be labeled clearly, and the community can refine multi-year budgeting in future cycles.

5. How does the proposed ‘net change limit’ affect spending throughout the year?

Question (Multiple Participants):
If the net change limit is set, how does it cap ongoing or new proposals?

Answer (Lloyd & Lawrence):

Definition: The net change limit is a maximum total amount that can be withdrawn from the treasury in a given year. It helps ensure spending does not exceed the treasury’s annual replenishment rate.
Impact on Ongoing Proposals: Once the budget is approved, the sum of withdrawals by Intersect and other proposals cannot exceed the net change limit. If the Intersect budget uses, for example, 300 million ADA out of a 350 million net change limit, there is 50 million ADA “headroom” left for other proposals or emergencies in that cycle.
Possibility of Revision: A new net change limit could be proposed, but if it contradicts already-approved expenditures, it is unlikely to pass (i.e., it would be deemed “unconstitutional” under the rules).

Key Takeaway:
Setting a net change limit encourages fiscal responsibility and leaves room for additional community-driven proposals or unexpected needs.

6. What if the Cardano treasury tax rate changes from 20% to 10%?

Question (Felix & John):
A new parameter change action proposes reducing the treasury percentage from 20% to 10%. How would that impact the budget?

Answer (Lloyd):

Proposal Origins: Community members, including SPOs, have debated whether a lower treasury tax could spur more on-chain activity—therefore potentially keeping treasury inflows stable or even increasing them.
Effect on Budget Planning: If the DReps approve a significant reduction, the treasury’s replenishment would drop—making it harder to sustain a larger budget unless on-chain activity rises substantially.
No Direct Impact on Transaction Fees: As clarified in the discussion, the immediate “cost” of transactions would remain the same; it’s the distribution of those fees (to treasury vs. staking rewards) that changes.

Key Takeaway:
A lower treasury rate could constrain the budget, making net change limits more stringent. Any such proposal must be weighed carefully by DReps and the broader community.

7. How do Committees coordinate to avoid overlaps or double funding?

Question (Chris & Tex):
Is there a risk that committees request similar events or tasks, leading to duplicated efforts?

Answer (Chris):

Clear Communication: Committees are working together (via weekly syncs, the Budget Committee’s process working groups, and Intersect channels) to cross-check items.
Revising & Refining: Where overlap is identified—like two groups traveling to the same event—Committees refine requests so that only one team covers it.
Focus on Efficiency: The Budget Committee’s role is partially to ensure funds are used effectively, with no “double dipping” on the same deliverable.

Key Takeaway:
Open lines of communication among committees and thorough review by the Budget Committee aim to minimize duplication.

8. How will the new procurement process differ from a corporate model?

Question (Lloyd & Chris):
What’s changing now that Cardano is moving to a publicly governed treasury rather than relying on private or corporate funding?

Answer (Lloyd):

Fully Public, On-Chain: All major spending is proposed, deliberated, and voted on by the community (DReps). This ensures transparency and distributed decision-making.
Broader Stakeholder Input: Rather than executives in a company deciding on budgets, Cardano’s “board” is the entire ecosystem—requiring more dialogue, Q&A, and info actions.
Yearly & Multi-year Proposals: Because large-scale software and ecosystem initiatives span months or years, the community must plan budgets with forward-looking stewardship.

Key Takeaway:
Shifting to public procurement fosters broader participation but also introduces complexities that the community must carefully navigate.

9. Could Intersect ‘use up’ too much of the net change limit, blocking smaller proposals?

Question (Damian):
If the budget from Intersect’s committees is large, might it crowd out other community proposals?

Answer (Lloyd):

Keeping Headroom: Intersect’s proposals strive to remain under the replenishment rate, leaving room for other initiatives.
Priority vs. Growth: Some portion of the treasury is reserved for new and unforeseen proposals throughout the year. The exact buffer depends on the final net change limit.
Responsible Governance: If the community believes the Intersect budgets are too large, they can signal that feedback before or during an on-chain vote.

Key Takeaway:
Intersect is aiming to balance necessary spending with enough “headroom” for innovation and unexpected needs from the broader ecosystem.

10. Is there progress on in-person gatherings for budget socialization?

Question (Nana):
In-person workshops or “budget summits” were previously mentioned. Is there any news on organizing them?

Answer (Lloyd & John):

Funding Hurdle: Plans for in-person gatherings are on hold until the budget is approved and funding is available.
Value of Physical Collaboration: Many believe face-to-face sessions are extremely valuable for building governance “muscles,” encouraging deeper discussions, and forging partnerships.
Inclusivity & Lottery System: There is interest in having partial “lottery-based” spots so that newer or less-funded community members can also attend, rather than it being invite-only.

Key Takeaway:
Once budget details are finalized, Intersect hopes to reinitiate planning for in-person events where broader input can be gathered efficiently.

Conclusion & Next Steps

This AMA session underscored the evolving nature of Cardano’s governance and the practical challenges of assembling the first-ever annual budget. The Intersect Budget Committee—and the various subcommittees—are actively refining their requests based on community feedback. The success of Cardano’s decentralized budget process depends on sustained community collaboration. As the Budget Committee works toward finalizing proposals for the 2025 budget cycle, your voice and vote will help steer Cardano’s path toward robust, transparent governance and long-term resilience.

Watch the full AMA here.

MadOrkestra · 21 February 2025 21:24

Regarding to ChatGPT lawyers call this form of data dumping “discovery abuse”

LloydDuhon · 21 February 2025 23:14

February 12, 2024

Cardano Over Coffee Hosts Intersect’s Lloyd Duhon to Demystify the 2025 Budget Proposals

On February 12, 2025, the daily “Cardano Over Coffee” X-space welcomed Lloyd Duhon, a member of the Intersect Cardano Budget Committee, to discuss the first-ever 2025 Cardano budget process. Hosted by Darlington Wleh and James Meidinger, Cardano Over Coffee convenes community members each weekday to share insights on Cardano news, governance, and ecosystem updates. This session focused on clarifying various aspects of the draft budget proposals, the rationale behind them, and how the community can give feedback.

Below is an overview of the conversation’s highlights.

1. What Is Cardano Over Coffee?

Cardano Over Coffee is a long-running daily Twitter/X Space where Cardano community members gather for casual yet in-depth conversations. Hosted by community leaders, it serves as an open forum for new developments, project showcases, debates, and occasional deep-dives with subject-matter experts from across the ecosystem. Darlington (“LidoNation”) and James (“BlockJock”) regularly moderate, ensuring an energetic, inclusive atmosphere for learning and discussion.

2. Intersect & The 2025 Budget Process: A Quick Recap

Intersect is a membership-based organization formed to help steward Cardano’s on-chain governance, particularly once the Voltaire era and Plutus/Constitutional upgrades went live. The 2025 budget cycle is the first fully public, community-led process to decide how Cardano’s treasury resources will be allocated.

Multiple Committee Budgets: Technical Steering Committee (TSC), Open-Source Committee (OSC), Growth & Marketing, Membership & Community, and others have each crafted a budget.
Budget Committee Role: Lloyd explained that the Budget Committee provides financial expertise and auditing functions. Rather than every committee having its own finance team, the Budget Committee assists with reviews, helps unify budget documents, and ensures consistent processes (e.g., price assumptions for ADA, contracting details).

Key Purpose:

Draft & Refine Budgets: Gather all committee proposals, highlight line items, and reconcile any inconsistencies.
Engage Community Feedback: Solicit input via open AMAs, Forum posts, and X-spaces (like Cardano Over Coffee).
Finalize & Submit Info Actions On-Chain: Once proposals mature, they are voted on by Delegated Representatives (DReps).

3. ADA Price Assumptions & OTC Sales

One recurring question was why the budgets assume a 50¢ USD price for ADA. Lloyd clarified that:

Budget Projection Tool: Committees needed a standardized “planning price” so they could request amounts in ADA for year-long expenditures, typically denominated in fiat on actual contracts. Originally 30¢ was used, but given recent ADA price movements, 50¢ became the updated reference.
Protecting ADA’s Market Price: Some asked about potential downward pressure if large amounts of ADA flood exchanges. Lloyd confirmed OTC (over-the-counter) sales would be utilized to minimize market impact. A specialized Treasury Working Group (including experts from Intersect) handles these transactions.
No Slush Funds: Because Intersect and CDH (Cardano Development Holding) are non-profit entities, leftover funds either go back to the treasury or reduce future withdrawal requests—there is no indefinite “slush” pot of unspent ADA.

Community Insight: Many participants felt it’s crucial to keep the budget flexible if the ADA price changes. Others noted they’d like to see multi-year projections and a more dynamic approach in future cycles.

4. Budget Summits vs. Virtual Sessions

Budget Summits were proposed line items that generated both interest and skepticism:

In-Person Gatherings: Lloyd argued that complex, high-stakes budget decisions often benefit from real-time, face-to-face discussion. Summits might be more than one event and could happen regionally.
Line Item Ambiguity: The “Budget Summit” figure in the spreadsheet attracted scrutiny, partly because there’s still uncertainty in cost estimates. Some wondered if 2025 is too soon for big summits, suggesting smaller or virtual alternatives first.
Quarterly & Annual Reporting: Even if not in-person, Intersect and the committees plan “quarterly reporting” sessions to update the community on spending progress and results—critical for ongoing transparency.

5. Contracts, Non-Disparagement & Legal Details

A lively portion of the conversation centered on contract terms:

Intersect’s Legal Framework: Whenever Intersect awards funding (from its portion of the budget), there must be an enforceable contract. This protects the community’s treasury from non-delivery or misuse.
Community Involvement in Contract Templates: Several attendees expressed concern over “non-disparagement clauses” or other legal language they considered heavy-handed. Lloyd emphasized that each contract is a negotiation and that the community’s feedback on standard templates is valuable.
Path Forward: Lloyd promised to raise the idea of a “contract review workshop” where the legal team could outline the minimal required clauses and gather community input to ensure fairness and transparency.

6. DRep Compensation Discussions

One committee line item proposes exploring the possibility of DRep compensation—to recognize the time and expertise many DReps invest in reading proposals, traveling, or doing research. Points discussed:

Community Workshops: Several upcoming sessions will examine whether DReps should be compensated at all, and if so, how to structure it (e.g., protocol-level vs. Intersect-administered).
Not Guaranteed: Any allocated ADA for DRep remuneration is effectively “planning funds,” not automatically withdrawn. The community or a DRep working group would decide if compensation is warranted and under what conditions.

7. Role of CDH & “Why Two Entities?”

The Cardano Development Holding (CDH) is a sister entity to Intersect, designed to hold treasury funds in a manner that meets certain legal, tax, and regulatory constraints. CDH’s design:

Non-Profit, Ecosystem-Focused: Funds can only be spent on Cardano’s public benefit.
Checks & Balances: Should the community ever remove Intersect, CDH could interface with a new MBO or governance group. This helps ensure no single organization can “run off” with treasury holdings.

8. Calls for Stablecoin Solutions & ROI Tracking

A speaker raised broader concerns about the lack of stablecoin liquidity on Cardano, claiming it hampers everyday user adoption and complicates budgeting. Key feedback included:

Stablecoins as a Priority: The speaker argued that budget committees should place stablecoin infrastructure and cross-chain liquidity at the top of the funding list.
Return on Investment: Questions arose about how to measure the success of budget allocations, suggesting each funded project should propose a plan for how it contributes to new revenue or user growth on Cardano.

While Lloyd acknowledged the significance of stablecoins and ROI tracking, those items had not yet featured prominently in the current draft budgets. Future budget cycles might address these more fully.

9. Next Steps & Refinements

Community Review of Proposals
Lloyd reminded everyone to review and comment on the draft proposals in the Cardano Forum. Multiple AMA sessions run weekly—Tuesdays, Thursdays, and some Saturdays—where feedback is collected and further revisions are discussed.
Spreadsheet Corrections
The published spreadsheet had discrepancies (e.g., differing ADA price assumptions between committees). Expect updates and clarifications as more eyes pinpoint errors.
Contract Workshop Idea
In response to concerns about contract terms, Lloyd plans to propose a contract-review workshop. The aim: identify “non-negotiables” vs. flexible language to ensure fairness without stifling free critique or community insight.
2026 & Beyond
Many participants want a clearer multi-year forecast. Lloyd agreed that future budgets should provide 2–3 year outlooks, acknowledging that “first-year friction” is part of developing a robust governance pipeline.

10. Where to Get Involved

Intersect AMA Sessions:
Sign-up links for live Q&A calls are regularly posted via Intersect’s channels.
Cardano Forum:
Draft budgets and line items are pinned for community feedback. Voice your suggestions or concerns there.
Cardano Over Coffee X-Space:
Tune in weekdays to hear daily Cardano community discussions and follow-up with the Intersect Budget Committee on February 26, 2025.

Final Thoughts

Cardano Over Coffee once again served as an invaluable community touchpoint, allowing direct engagement with a core decision-maker in the newly decentralized budget era. The conversation made it clear that:

Transparency & Community Input need continuous improvement as Cardano navigates an unprecedented governance model.
Legal & Financial Complexities—from OTC sales to standard contract language—must be balanced with the ethos of decentralization.
Constructive Debate is shaping a more cohesive, open budget process for 2025 and beyond.

Lloyd and the Budget Committee encourage every Cardano participant—whether a longtime contributor or a new arrival—to study the proposals, attend AMA sessions, and share feedback. Together, the community will refine the first annual Cardano budget and set lasting governance precedents for the ecosystem.

Have ideas or concerns about Cardano’s budget or governance? Join the discussion on the Cardano Forum. Your insights directly shape the future of this global, decentralized ecosystem.

Watch it on YouTube here.

Listen to the X-space here.

LloydDuhon · 22 February 2025 20:42

February 20, 2025 (European Timezone call)

Cardano Ambassadors Dive Into 2025 Budget Plans and Net Change Limit Proposals

Intersect Cardano Budget Committee

Introduction

On February 20, 2025, the Cardano Foundation’s Denicio and Sebastian hosted the latest Cardano Ambassadors Call(European time zone), featuring special guest Lloyd Duhon from the Intersect Cardano Budget Committee. During this session, Lloyd walked the Ambassador community through the current Cardano budgeting process, upcoming milestones, and how everyone can get involved.

This meeting served two main purposes:

Providing a clear overview of the Cardano 2025 budget timeline.
Answering questions on the Net Change Limit (NCL) proposals and how broader community feedback shapes final decisions.

If you missed the call, here’s a concise overview of what was covered.

Welcoming a New Ambassador

Before tackling the primary agenda, Sebastian introduced Rodrigo, a long-standing contributor to the Spanish-speaking Cardano community. Already active for years as a content creator and stake pool operator, Rodrigo is now an official Cardano Ambassador. He expressed enthusiasm for engaging with fellow Ambassadors and supporting Cardano initiatives through regional outreach.

Budget Overview: Why It Matters

Lloyd opened by emphasizing that community-driven governance is central to Cardano’s vision—managing a budget is part of that responsibility. Through Intersect, the community can pool financial resources, expertise, and collaborative energy to carry out everything from research and development to marketing and catalyst-style innovation.

“If we don’t collectively decide how to allocate our resources, we can’t effectively build our ecosystem,” Lloyd explained.

He noted that while multiple groups in the ecosystem have their own budgeting processes, Intersect’s work aims to provide a unifying framework for Cardano’s major funding priorities.

Key Timeline Highlights

Lloyd presented a Gantt-style roadmap to illustrate the budgeting phases between now and mid-2025. Below are the main checkpoints:

Current Phase — NCL Proposal Feedback (February – March)

The proposed Net Change Limit (NCL) is already on the Gov Tool’s “proposal forum” for community feedback. This NCL sets the threshold needed to move funds from the on-chain treasury.
Ambassadors and the broader community are encouraged to review and comment before it transitions to an on-chain inflection vote.

On-Chain Inflection for NCL (March – May)

After approximately two weeks of discussion, the NCL goes on-chain for a 6 - epoch voting window. The proposal needs a 67% approval from delegated stake to pass.

Budget Proposals Finalized (March – April)

Five budget committees (Research, Core Tech, Innovation, Marketing, and Governance) are currently incorporating community feedback on their respective draft proposals.
Once finalized, each budget heads to a separate, two-week proposal phase in Gov Tool, followed by an on-chain vote.

Treasury Withdrawals & Contracting (May – June)

Upon successful votes, treasury actions can withdraw the approved funds.
Each committee will issue Requests for Proposal (RFPs) to allocate projects—ensuring an open, transparent bidding process for anyone looking to execute work under that budget.

Contingencies and Flexibility

If a particular budget proposal isn’t ready or requires more community input, it may shift by several weeks or even months—without stalling the entire budget cycle.
In-person workshops may be scheduled if deeper engagement is needed. Lloyd emphasized the desire to hold sessions in diverse locations to increase access and awareness.

Marketing Budget: Learning as We Go

One area needing extra attention is the Marketing Budget. Lloyd explained that while the research and core tech proposals are nearly finalized, marketing’s timeline is more fluid:

Request for Information (RFI) – Gathering insights from professional marketing firms and community experts.
Request for Proposal (RFP) – Defining specific campaigns and deliverables.
Budget Approval – Securing on-chain approval before awarding contracts.

The marketing committee must first solidify an RFI to shape a robust approach—this ensures any final marketing strategy aligns with Cardano’s values and the ecosystem’s most pressing needs.

Building Tools for a Better Process

A recurring theme was the need for better tools to collect and manage feedback. While the Cardano Forum and Gov Tool handle much of the current workflow, Lloyd noted that many in the community have requested more user-friendly, visual platforms—especially for comparing on-chain explorer data or verifying net change limits.

“We’re capturing these requirements now,” Lloyd said, “so that by the next budget cycle, we can implement robust tools that make budgeting even more inclusive.”

Feedback: Your Voice Counts

Despite structured proposals, Lloyd admitted that more community feedback is needed. He urged Ambassadors to spread the word so that more people can:

Review the draft budgets on the Forum.
Comment with questions or suggestions while committees can still integrate feedback.
Monitor the on-chain voting when proposals go live, ensuring their stake is used effectively.

Procrastination can lead to last-minute confusion, so timely engagement is key. Lloyd highlighted that waiting until the on-chain vote to voice concerns often proves less effective than offering constructive feedback early.

Building in Public: Challenges and Rewards

Several Ambassadors noted the openness of Cardano’s governance model. Lloyd acknowledged that while building in public helps transparency, it can bring personal or heated debates. Nevertheless, both Intersect and the broader community remain committed to refining the process in a spirit of collaboration and respect.

Closing Thoughts and Next Steps

Check the Forum
Visit the Cardano Forum’s dedicated Budget 2025 section to read proposals and leave input.
Track the Timeline
The NCL and subsequent budgets will move to on-chain votes in the coming epochs—stay alert for final submission windows.
Join the Conversation
Intersect hosts regular AMAs on Zoom and makes various appearances on Twitter/X Spaces and other Cardano influencer platforms. Keep an eye on the Intersect Cardano Budget Process calendar for upcoming open AMAs.
Spread the Word
As Ambassadors, content creators, or passionate community members, encourage others to participate and shape Cardano’s future.

“Your attention is your most valuable asset,” Lloyd concluded. “Thank you for using it to help govern Cardano.”

With the 2025 budget just around the corner, now is the time for every Cardano stakeholder to step forward, share insights, and ensure we allocate resources where they matter most.

If you have questions or feedback, post them in the Cardano Forum or reach out directly to @IntersectCBC on Twitter/X. Let’s continue to refine our community-driven governance and chart Cardano’s path together.

Thank you for reading. Let’s keep building Cardano—together.

Disclaimer: The meeting was recorded, but at the request of staff at Cardano Foundation, we are not permitted to share the video.

LloydDuhon · 22 February 2025 20:56

February 20, 2025 (Noon EST)

Cardano Ambassadors Monthly Call #2: 2025 Budget Process Update and Open Q&A

On February 20, 2025, at 12 PM EST, the Cardano Foundation hosted the second Cardano Ambassadors Monthly Call. Moderated by Denicio and Sebastian from the Cardano Foundation, this session featured special guest Lloyd Duhon of the Intersect Cardano Budget Committee. The focus of the call was on the 2025 Cardano Budget Process—a crucial initiative that determines how Cardano’s treasury funds will be allocated to support the ecosystem’s core development, research, marketing, and governance in 2025.

For those unable to attend, this article provides a concise review of the meeting’s highlights, the current status of various committee budgets, and next steps for community participation.

1. Setting the Stage for the 2025 Budget

Why Now?
Following the successful on-chain ratification of Cardano’s first Constitution, the community has entered a phase of self-governance. One major responsibility in self-governance is resource allocation from the treasury—hence, the 2025 Cardano Budget Process. Intersect, the legal entity formed to help administer governance and budgets, has been tasked with developing a clear, collaborative framework to move these efforts forward.

Key Budget Areas
Five main budget “buckets” have been identified to reflect the strategic priorities of Cardano in 2025:

Core Development – Maintaining and upgrading the protocol.
Research & Innovation – Advancing Cardano’s scientific and R&D efforts.
Growth & Marketing – Spreading awareness, fostering adoption, and building the global brand.
Governance Support – Strengthening CIP-1694 processes, tools, and community governance.
Intersect Operations – Ensuring operational services, legal/HR resources, and the capacity for contract management.

2. The Budget Timeline and Current Phase

Proposed Timeline
Lloyd presented an updated timeline showing where Intersect stands in the budget process:

Initial Proposal Phase:

Gathering community feedback on overall spending limits (the “net change limit”) and early drafts of each committee’s budget.
Discussions happen on the Cardano Forum and the GovTool platform in parallel.

On-Chain Governance Actions:

Once proposals mature and address community feedback, they are posted on-chain for a formal Info Action vote.
Each Info Action runs for a full six epochs, giving DReps (Delegated Representatives) and stake pool operators time to review and vote.

Workshops & Feedback Sessions:

Potential in-person or hybrid workshops (proposed for mid-April) will invite deeper discussions among community members.
These are designed to help finalize details before on-chain votes conclude.

Implementation & Treasury Actions:

Once an Info Action passes, the next step is a Treasury Action to fund approved initiatives.
Intersect will oversee legal contracts, milestone-based payouts, and ensure deliverables match expectations.

3. Highlights from the Q&A with Lloyd

During the call, Lloyd addressed questions from ambassadors on the following topics:

a) Net Change Limit and Thresholds

Definition: The net change limit caps annual treasury spending so the Cardano community does not over-allocate funds.
Voting Threshold: The parameter committee recommended a 67% approval threshold, which aligns with other governance guardrails.

b) Multiple Budget Proposals

Why Several Buckets? Each area—Core, Research, Marketing, Governance, and Innovations—presents a dedicated budget. This modular approach ensures more focused planning and accountability.
Staggered Approvals: Proposals that are ready sooner (e.g., core development, research) may move forward first. Less mature proposals (e.g., marketing) may need more time to incorporate feedback.

c) Growth & Marketing Committee Concerns

Community Feedback: Several ambassadors noted that the marketing budget proposal feels underdeveloped and requires clearer goals, comparative analysis, and stronger justifications.
Plans to Improve: Lloyd acknowledged these concerns. He noted that the Growth & Marketing Committee is relatively new, recently lost its lead, and is actively working with event experts and strategic consultants to refine its scope. Until it reaches maturity, it will not be pushed on-chain.

d) Contracting & Accountability

Milestone-Based Payouts: Intersect’s operational services team employs milestone-based payouts to ensure deliverables meet agreed-upon standards before funds are released.
Legal Framework: As a registered Wyoming corporation, Intersect can pursue legal action if vendors fail to deliver. This structure protects treasury funds and fosters transparency.

e) Community Participation and Challenges

Tools & Communication: The biggest hurdles are the lack of a single tool to facilitate budget proposals and the difficulty of reaching every DRep. While the on-chain process is the final checkpoint, efforts are underway to streamline off-chain discussions and open-source tooling for budgeting.
Budget Working Group: A Budget Process Working Group—chaired by Kris Baird—will conduct a comprehensive retrospective and outline improvements for 2026. Interested community members can join the dedicated Discord channel to participate.

4. Call to Action: Get Involved

Review Budget Drafts on the Cardano Forum

Visit the dedicated Budget 2025 section to read proposals and post your feedback.

Help Spread the Word

As ambassadors, blog about the budget process, create videos, or host Twitter Spaces to raise awareness.
Reach out to Lloyd or Intersect team members if you need clarifications for your content.

Join the Conversation

Participate in weekly AMAs, the Growth & Marketing Committee calls, and the Budget Process Working Group if you want to shape next year’s improvements.

Watch for On-Chain Votes

Formal Info Actions for each committee budget will go on-chain once they are finalized. DReps and stake pool operators will play a major role in approving or rejecting these proposals.

5. Looking Ahead

With the 2025 budget process now in full swing, community engagement is critical. Everyone—developers, stake pool operators, DReps, ambassadors, and ADA holders—has a stake in ensuring that funds are allocated fairly, transparently, and effectively. As Lloyd emphasized, the community’s time and feedback are the most precious resources of all. By participating now, we ensure a stronger, more resilient Cardano ecosystem in the year ahead.

Stay tuned for further updates on the Intersect-hosted workshops, final budget proposals, and the upcoming on-chain votes. Let’s work together to make the 2025 budget process a landmark in collaborative governance on Cardano.

Have Questions or Want to Contribute?

Intersect Community Discord: Engage with working groups, committees, and volunteer for translation or content creation.
Cardano Forum: Share your feedback on each proposal in the Budget 2025 section.
Reach out to Lloyd: If you’d like him on your podcast or community call, he’s happy to help unpack the details.

Thank you to everyone who joined the February 20th call—and to those supporting this critical milestone in Cardano governance.

Disclaimer: The meeting was recorded, but at the request of staff at Cardano Foundation, we are not permitted to share the video.

LloydDuhon · 22 February 2025 21:44

Governance in Review: What’s Being Proposed for Cardano?

Recap of the Intersect MBO X-space on February 20, 2025

Overview

On February 20, 2025, members of the Cardano community tuned into an Intersect MBO X-space titled “Governance in Review: What’s Being Proposed for Cardano?” The session ran for 2 hours and 22 minutes, drawing 665 live listeners. Two primary hosts guided the conversation, focusing on community-driven questions around budgets, resource allocation, and the next phase of Cardano’s governance. The panel of notable speakers featured:

Lawrence Clark – Intersect Cardano Budget Committee-COO
Samuel Leathers – IOHK/Intersect Product Committee, Chair
Kit Willow – Drep
Wada – SPO / Drep
Lloyd Duhon – Intersect Cardano Budget Committee-SME
EL – Drep
Mercy – Intersect Cardano Budget Committee-Community Elected Member

This article distills the major talking points and proposals, outlining where the community can find clarity and how to offer input.

1. Intersect’s Budget Process at a Glance

Budget Committee’s Core Functions

Facilitation Over Approval
The Budget Committee (BC) is tasked with supporting the Marketing, Product, Technical Steering, and Civics committees in creating coherent funding requests. It does not exercise unilateral budget approval but ensures proposals align with Intersect’s overall roadmap.
Cross-Committee Coordination
BC members often coordinate feedback between different working groups, preventing duplications in line items and harmonizing priorities—particularly in areas where marketing initiatives might overlap with technical ones.

The Process Working Group

A dedicated process team captures lessons learned each cycle—whether from net change limits, cost allocations, or RFP outcomes—and refines the approach for the following year. The aim is more transparency, simpler reviews, and clear documentation for the community.

2. Handling RFPs & Contractual Details

Issuing an RFP

Whenever a committee requires external help—development, research, or specialized marketing—an RFP opens the field for any qualified supplier. The BC coordinates initial guidance on budgets and scopes, but committees ultimately decide which proposals meet their needs best.

Contract Transparency

Speakers noted that contracts may vary widely:

Simple Stipends: Streamlined documents for short tasks or standard committee engagements.
Master Services Agreements: Used when a supplier might handle security-sensitive or multi-year work.

Community participants are encouraged to keep an eye on Intersect’s knowledge base for boilerplate contract templates that illuminate standard clauses, non-disclosure requirements, and KYC implications.

3. Compensation & KYC Concerns

Intersect’s Operational Staff

Intersect employs around 40 individuals, covering everything from administrative oversight to treasury logistics. Their collective resourcing cost is an estimated $6.5M annually (exact figures pending final 2024 financial reporting). These roles are integral for day-to-day operations.

Constitutional & Community Roles

Questions arose regarding how to pay representatives—such as Constitutional Committee members or DReps—while balancing pseudonymity and legal obligations (e.g., standard KYC in certain jurisdictions). In practice, Cardano Development Holdings (the entity that disburses Treasury funds) may require some proof of identity for auditing. However, there was agreement that the ecosystem should keep exploring decentralized identity alternatives to reduce friction and preserve user privacy.

4. Community Hubs & Election Considerations

Fostering Global Participation

Some hubs (e.g., Sri Lanka, Japan, Africa) have done extensive grassroots work, expanding local Cardano membership. This has bolstered both overall awareness of Intersect and active voting in official elections.

Votes and Potential Overlaps

Questions about membership surges and electoral integrity arose. Several panelists acknowledged that one-person-one-vote can introduce vulnerabilities if membership doesn’t scale broadly. It was widely noted that Intersect ultimately depends on ADA holders and Directors for final approval, providing a backstop if local membership clusters grow disproportionately influential.

5. Product Committee’s Roadmap Highlights

Samuel Leathers offered a detailed look into the 2025 roadmap for Cardano, summarizing key focuses:

Scaling the L1

Streamlining Cardano node operations, preparing better node parameter flexibility, and reducing technical debt.
Looking toward “layers” protocol improvements over the next year, ensuring robust finality and high throughput.

Layer 2 Solutions

Continued development on Hydra and Midgard for off-chain scaling.
Building frameworks for potential “partner chains,” letting external projects leverage Cardano’s security.

Developer Experience

Introducing gRPC APIs to move away from reliance on the node socket.
Encouraging specialized chain indexers and new tooling to make dApp development more seamless.

Programable Assets

Enabling features like soul-bound tokens and stablecoin compliance rules without rewriting base protocol code.
Simplifying how wallets recognize and display these advanced tokens.

Multiple Node Implementations

Fostering diversity in node software, ensuring formal specifications and shared benchmarking so each implementation meets quality/performance benchmarks.

Stake Pool Incentive Tweaks

Potential introduction of a minimum margin parameter and pledge benefit curve adjustments—subject to community discussion and a possible future hard fork.

The community can review the Product Committee’s GitHub repos and join open calls to suggest changes or additions.

6. Host Facilitation & Community Echo

Throughout the space, the hosts diligently relayed questions that often stemmed from general community sentiment—ranging from budget overlap worries to clarifying how contractual disclaimers might impact transparency. While their facilitation kept the conversation lively, deeper technical or procedural clarifications often came from the committee members directly involved in budgeting and governance. This fusion of grassroots questions with expert explanations formed the backbone of the session.

Key Takeaways & Next Steps

Engage with Proposals
Community members are urged to scrutinize each committee’s draft budget on the Cardano Forum and point out redundancies or unclear items.
Stay Tuned for Contract Templates
Intersect aims to publish standard contract forms, clarifying NDAs, KYC, and other legal aspects.
Roadmap Participation
The Product Committee’s vision is open to public suggestions—submit issues or pull requests on their GitHub if you see gaps in L2 or developer tooling.
Election Processes
Election integrity remains a key topic as Intersect membership scales. Future refinements may address membership surges or new identity solutions.
Watch for 2024 Financial Report
More precise operational cost details and staff compensation breakdowns are expected soon, providing greater insight into Intersect’s annual spending.

Closing Thoughts

The “Governance in Review” X-space underscored the dynamic nature of Cardano’s transition into deeper community-led governance. While the conversation touched on potential vulnerabilities in voting and budget oversight, the committees stressed that ongoing collaboration and transparent documentation remain the best tools for tackling these issues.

From finalizing a multi-layer roadmap to managing RFPs and clarifying contract language, each committee has set actionable items that the entire ecosystem can track, critique, and improve. For community members eager to influence Cardano’s direction, the best next step is active participation—on forums, in working groups, or through direct feedback on open GitHub repositories.

Prepared for the Cardano Forum, based on the Intersect MBO X-Space held on February 20, 2025.

Listen to the X-space here.

LloydDuhon · 22 February 2025 22:18

February 20, 2025

Intersect Cardano Budget Committee AMA Recap

On February 20, 2025, the Intersect Cardano Budget Committee hosted another open “Ask Me Anything” (AMA) session to hear community perspectives on Cardano’s first-ever budget process. Below is a summary of the top 10 questions that emerged, along with the Committees’ responses and insights into how this input shapes our evolving governance.

1. “Are we too early or too late to submit proposals for funding?”

Question:
Participants wanted to know if they had missed the opportunity to propose projects—or if it was still too soon to submit any formal funding requests.

Answer:

Still Early in the Process: The budget cycle is currently at a high-level planning phase (RFI – Request for Information). Detailed proposals (RFPs) will come later, so those with project ideas have time to prepare.
Aligning to the Right Committee: Individuals looking to bid on future RFPs or to propose a public good can engage early by joining relevant committees (e.g., TSC, OSC, Growth & Marketing).

Key Takeaway:
You haven’t missed out. The formal submission phase is coming soon, and there’s active work behind the scenes to clarify where specific proposals should fit.

2. “What about projects that don’t fit a single bucket—e.g., open-source or cross-chain tooling?”

Question:
Some community projects, such as data frameworks or oracles, feel they’re “adjacent” to core Cardano development but aren’t sure which committee would fund them.

Answer:

Incubator Mindset: Intersect can act as an “incubator,” helping projects get their footing, find collaborators, and potentially move on to their own membership-based organization if and when appropriate.
Public Goods Are Welcome: Tools that benefit the larger Cardano ecosystem (such as open-source software or oracles) can be proposed as public goods under relevant committee budgets (e.g., TSC) or, if needed, future RFPs.

Key Takeaway:
Intersect is flexible: committees are open to cross-functional or “adjacent” projects. If you build something that benefits Cardano broadly, you’re encouraged to seek alignment and potential funding.

3. “How do we handle duplicated or redundant funding (e.g., Catalyst + Intersect + direct treasury)?”

Question:
Community members worry about one project potentially getting funded multiple times through various Cardano avenues.

Answer:

Audit & Oversight: Intersect and the Budget Committee plan to maintain an audit trail. If a project has already received Catalyst funding, that context should inform subsequent requests.
Not Necessarily Bad: Some redundancy (a.k.a. “coopetition”) can spur innovation. However, major overlaps—where the exact same deliverable is funded twice—will be discouraged through diligence and committee reviews.

Key Takeaway:
Multiple funding streams are not always problematic but require transparency. A robust audit process ensures fair allocation and prevents pure duplication.

4. “Is there room for retroactive funding?”

Question:
Teams who have already built community-beneficial tools wonder if they can request funding retroactively.

Answer:

Possible but Not Guaranteed: Retroactive funding is constitutionally valid. The main question is whether DReps and the community see enough value to allocate funds for past work.
Public Utility Lens: If an existing tool is widely relied upon, the case for retroactive support is stronger—essentially treating it like a public good.

Key Takeaway:
Retroactive proposals can be submitted. The deciding factor is whether the broader community and DReps consider that completed work essential to Cardano’s growth.

5. “How do we encourage collaboration rather than competition among similar projects?”

Question:
Developers often feel they must “compete” for funding. How can we foster shared standards and cooperative approaches?

Answer:

Standards & Working Groups: Agreeing on common standards or libraries can significantly reduce fragmentation.
Coopetition: Build shared foundations, then compete on implementation or specialized features.
Intersect as a Networking Hub: By connecting like-minded developers, Intersect can spark collaborations that benefit the entire ecosystem.

Key Takeaway:
Collaboration isn’t always easy, but standard-setting and joint working groups lead to better tooling, fewer silos, and stronger ecosystem support.

6. “Why is feedback so crucial to this first Cardano budget cycle?”

Question:
Several speakers emphasized the central role of community feedback. Why is it so critical?

Answer:

We’re Building the Plane While Flying: This is Cardano’s inaugural annual budget process. Every comment, critique, or suggestion helps improve future cycles.
Refining Operational Services: How well committees execute operational tasks—and how easily the community can navigate them—depends on continuous feedback loops.

Key Takeaway:
Feedback fuels iteration. Each concern or suggestion refines the system, ensuring Cardano’s governance can scale in the years ahead.

7. “When will there be more AMA sessions in diverse time zones?”

Question:
People outside the current AMA schedules (especially in APAC or certain US/European time zones) want more convenient slots.

Answer:

Expanded March Calendar: Additional calls are being scheduled for March 2025 to accommodate various time zones.
Committee-Specific Q&A: The Budget Committee aims to have each major committee (TSC, OSC, Marketing, etc.) present at different sessions, so everyone gets direct answers.

Key Takeaway:
More sessions are coming, with time zone diversity in mind. Keep an eye on Intersect’s official calendar and announcements for upcoming calls.

8. “What about stablecoin initiatives and forming legal entities?”

Question:
A recurring topic is how to fund stablecoin development, given the regulatory and organizational complexities.

Answer:

Intersect’s Role: Intersect can serve as a home base, helping spin up or guide legal entities until they’re self-sustaining.
Flexible Incubation: Projects can eventually become independent while still benefiting from Intersect’s shared operational services if it’s cost-effective.

Key Takeaway:
For complex projects that require formal legal or corporate structures, Intersect can help incubate them, with the option to spin out later.

9. “Will Intersect eventually support a detailed ballot-like voting system for members?”

Question:
Early discussions mentioned a “full ballot” approach, where individual members could vote on specific budget line items rather than just broad proposals.

Answer:

2026 Aspirations: The goal is to refine specifications and have a more granular member-voting system in place for the 2026 budget cycle.
Delayed Due to Time Constraints: Starting the 2025 budget cycle so late made it impossible to develop or test a more advanced system this year.

Key Takeaway:
A more sophisticated, line-item voting mechanism is a high priority for future budget cycles. Look for RFPs and discussions on implementing that over the coming year.

10. “How will committees manage RFI → RFP flow, and what if I have a unique idea right now?”

Question:
People are eager to pitch innovative ideas, but the committees emphasize that formal RFPs (Request for Proposals) follow a specific timeline. What can be done in the interim?

Answer:

Stay Engaged & Prepare: Use this lead time to refine your pitch, gather community feedback, and determine which committee or working group aligns best with your idea.
Look Out for Announcements: Each committee will announce RFP windows; be ready to submit once the formal process opens.

Key Takeaway:
The timeline from initial RFI to final RFP ensures a structured approach. In the meantime, connect with committees, gather insights, and develop a compelling case.

Conclusion & Next Steps

This AMA highlighted the complexity and promise of Cardano’s first annual budget process. From cooperative funding to time-zone friendly AMAs, the community continues to refine how decisions—and ultimately, allocations—get made.

Your Call to Action:

Watch for March AMA Listings: More sessions across multiple time zones are being scheduled—join those that fit your region.
Prepare Your Project Ideas: Familiarize yourself with each committee’s scope (TSC, OSC, Marketing, MCC, etc.) and identify the best alignment.
Offer Feedback: The Budget Committee relies on your input—post thoughts, concerns, or proposals on the Cardano Forum and in Intersect Discord channels.
Stay Engaged in RFI → RFP Evolutions: The formal RFP stage is on the horizon. Now is the perfect time to refine proposals, build alliances, and cultivate your network within the Cardano ecosystem.

Have more questions or insights? Join the ongoing discussion on the Cardano Forum and follow Intersect’s updates for future AMA schedules and proposal guidelines.

LloydDuhon · 12 March 2025 13:04

March 11, 2025

Intersect & the Cardano Budget – 10 Key Takeaways from the March 11 Open AMA

On March 11, 2025, the Intersect Cardano Budget Committee hosted an open Ask Me Anything (AMA) session via Zoom. The purpose? To gather community input, clarify the first-ever Cardano on-chain budget process, and address any questions or concerns about the shifting governance landscape. Below is a recap of the top ten questions and answers from that session—summarizing how Intersect, DReps (Delegated Representatives), and the wider community can collaborate to move Cardano forward.

1. Why is there a “course correction” in the budget process?

Q: The conversation keeps mentioning a “pivot” or “course correction.” Why did Intersect change its approach?
A: Intersect recognized it needed explicit delegated authority from the newly empowered DReps to proceed. The Cardano Constitution effectively placed key budget decisions in DReps’ hands. Once it became clear that Intersect had not yet received a formal delegation of authority, the process was put on pause to ensure the DReps have the first right to decide how—and when—Intersect should act.

“The biggest thing that came up was that the DReps have not yet given Intersect any direct delegated authority. Once the Constitution was enacted on-chain, the authority was theirs.” – Lloyd (Intersect)

2. How will the DReps’ refinement process work for budget proposals?

Q: The AMA referenced a step where DReps refine a shortlist of proposals before submitting them on-chain. How will that work, and will Intersect help?
A: The idea is for the DReps to conduct discussions—virtually and in-person—to evaluate proposals. Intersect can act as a facilitator, offering tooling and organizational support to help them gather feedback, consolidate proposals, and then place them on-chain for approval. Ultimately, however, DReps decide which parts of the process they keep in-house and which responsibilities they delegate to Intersect.

“We see a series of virtual meetings, asynchronous discussions, and even small in-person gatherings—pizza-party style—to help DReps gather feedback. Intersect can provide tools and facilitation, but it all depends on what DReps say they need.” – Lloyd (Intersect)

3. What happened in the last couple of weeks to prompt this change?

Q: Could you give a quick status update on what’s happened behind the scenes, especially over the last week or two?
A: Intersect saw significant community feedback—both in sentiment tracking and public discussions—suggesting that the DReps’ authority needed to be recognized first. The Intersect Board assessed the feedback, acknowledged the constitutional mandate, and shifted focus to invite DReps to step forward with their vision. Now the emphasis is on clarifying roles: which tasks do the DReps want to do themselves, and which do they want to delegate to Intersect?

“It came to a fever pitch around two weeks ago, and it was clear we had to respect the on-chain authority of DReps first. The last couple of weeks have been about listening, re-tooling, and re-connecting with DReps for guidance.” – Lloyd (Intersect)

4. Did Intersect overstep by preparing a budget process before formal DRep delegation?

Q: Some community members wondered if Intersect was acting unilaterally. Did that violate the new Constitution?

Before we answer that, here’s a concise look at how the budget process came about and why Intersect began drafting it before DReps gained on-chain authority:

SIDEBAR: A Brief History of the Budget Process

July 2023: Early discussions at the CIP-1694 Workshop in Edinburgh introduced the idea of a structured budget process.
November 2023: Members of Intersect’s Civics Committee were tasked with refining a budget process.
January 2024: A follow-up workshop in London further developed the budget framework.
June 2024: The Budget Committee officially formed under Intersect to consolidate these earlier efforts.
February 23, 2025: The Cardano Constitution was ratified, granting DReps on-chain authority.
- By this time, much of the baseline budget process was already drafted. Intersect then “pivoted” to ensure DReps could formally adopt—or delegate—any elements of this pre-existing framework.

Today’s Structure

Intersect’s Early Involvement: This work was underway well before DReps formally existed.
Post-Constitution Pivot: Once DReps were recognized on-chain, Intersect adapted to clarify that further steps require direct delegation from DReps.
DReps’ Role: They can now explicitly delegate tasks to Intersect (or any other entity). Intersect stands ready to help—but only if authorized by a DRep vote.

A: According to Intersect (and backed by external legal opinions), it did not violate the Constitution. Intersect’s initial approach was a valid, common-sense way to propose a framework. However, the Constitution does stipulate that DReps hold the authority to either adopt that framework or delegate tasks to Intersect. Hence the pivot: Intersect is now awaiting a formal delegation from DReps so everything proceeds under clear constitutional compliance.

“In our interpretation, Intersect did nothing wrong. But everyone agrees that the DReps’ authority needs to be recognized first under the Constitution.” – Nico (Community Member)

5. What is the Net Change Limit, and why is it important?

Q: Several times, the AMA referenced a “Net Change Limit.” What does this parameter do, and why is there debate about when to set it?
A: The Net Change Limit places an upper boundary on how much ADA can be withdrawn from the Treasury within a given window. It’s essentially a safeguard for the ecosystem—similar to a sovereign wealth fund’s spending limit. There’s an ongoing discussion over whether to set this limit before finalizing the budget or after the budget scope is clearer. The DReps can also increase or decrease the limit later, though each on-chain change requires time (six epochs) and alignment.

“Some want to set a limit now (e.g., 300–350 million ADA) so that we can move forward. Others feel we should wait until the proposals are refined, to avoid re-voting. Both are valid; it’s up to the DReps how to proceed.” – Lloyd (Intersect)

6. Can we raise or lower the Net Change Limit if new needs arise?

Q: What if we approve a limit and later discover we need more (or less)?
A: The system is designed to be flexible. If the DReps and the community realize they need a higher limit (e.g., for a major new initiative), they can propose a higher Net Change Limit and vote it through another on-chain action. Lowering it again later is trickier if funds are already contractually committed, but you can still enact a new limit for future withdrawals. It’s all about consistent communication and an on-chain DRep vote.

7. How does Catalyst funding fit into the Treasury discussion?

Q: Some projects might request only small funding amounts (e.g., 10,000 ADA). Should those go through Catalyst instead?
A: At this stage, everything is on the table. DReps can decide whether smaller requests belong in Catalyst—designed for open innovation and early-stage ventures—or if they still warrant direct Treasury budgeting. Intersect’s role is to provide a clear intake form for any interested project. DReps then weigh each request and decide what best serves Cardano.

“We don’t want to turn away smaller proposals by default, but we also want to maintain Catalyst’s role for innovation. The DReps can decide if a proposal fits better in Catalyst or the Treasury’s budget.” – Nana (Community Member & DRep)

8. What is happening with smart contracts for Treasury withdrawals?

Q: How will we ensure accountability, particularly for large or multi-year budgets?
A: A working group is reviewing smart-contract solutions to handle payments. One proposed feature is a “stop-payment” authority, where a trusted council can freeze further disbursements if a project fails to meet milestones. This adds extra oversight and ensures misused or unused funds can return to the Treasury.

“We’re forming a smart contract working group. One of the features we envision is a council that can halt payments if a project isn’t meeting obligations, returning unspent funds to the Treasury.” – Lloyd (Intersect)

9. **Has Intersect provided a clear way for any Cardano project to submit proposals now?**

Q: How do new or lesser-known projects get started if they want to be part of the budget process?
A: Yes. Intersect has published an open submission form for budget proposals. Dedicated office hours are also in the works, offering live help. The Budget Committee aims to ensure no project is left behind due to complexity or confusion.

“We want a clear intake so that every Cardano project can present its proposal. If you need help, we have office hours and can walk you through everything.” – Marcel (Community Member)

10. Where do we go from here?

Q: What are the next steps, and how can the community stay involved?
A: Intersect and the Budget Committee will host regular AMA sessions and expand discussion channels. The DReps are actively encouraged to share what roles they want Intersect to undertake. Meanwhile, anyone in the community can offer suggestions on the Cardano Forum, on X (Twitter), and in Discord. Whether it’s a Net Change Limit proposal or a new idea entirely, your voice matters. Once enough clarity and consensus arise, on-chain votes will finalize Cardano’s first on-chain budget.

“Right now, we’re in listening mode. We want to know from each DRep: what do you want Intersect to handle? What do you want to keep for yourselves? That conversation determines the path forward.” – Lloyd (Intersect)

Final Thoughts

The March 11 AMA showcased how Cardano’s governance is evolving. With the Constitution ratified, DReps have formal authority, and Intersect stands ready to help—but only as explicitly delegated. It’s a learning process for everyone, but the commitment to decentralized governance remains strong.

Have Questions or Feedback?

Join the Cardano Forum discussions.
Follow Intersect updates on X (Twitter) and Discord.
Submit your budget proposal here or request AMA office hours if you need help.

In this new era of Cardano governance, community participation fuels progress. Let’s continue shaping the future together!

LloydDuhon · 18 March 2025 15:27

13 March 2025

Intersect Cardano Budget Committee AMA: Top Questions & Answers from 13 March 2025

On 13 March 2025, the Intersect Cardano Budget Committee (CBC) hosted a community AMA session on Zoom. Led by Lloyd Duhon (CBC Secretary), the call welcomed several participants eager to discuss the latest developments in Cardano’s on-chain governance and budget process. Below is a Medium-style recap highlighting the ten most prominent questions raised, alongside paraphrased answers drawn from the live discussion.

1. Why Is the Budget Process Pivoting Toward DReps?

Question:
Originally, committees were crafting budget proposals and sometimes planned for open RFPs. Why did that change to having DReps (Delegated Representatives) either sign off on budget items or formally delegate that authority?

Answer (Paraphrased from Lloyd & Others):
Under the newly ratified on-chain Constitution, DReps are recognized as holders of governance power. Intersect, on the other hand, is not enshrined in that document, so its authority is limited. DReps must either vote directly on budget proposals or explicitly delegate authority to Intersect or committees. This shift ensures the final say resides in a body recognized by the Constitution, rather than one formed off-chain.

2. How Do We Ensure Inclusivity Across Global Time Zones?

Question:
Participants in regions like New Zealand (UTC+13) said they feel excluded by committee calls and workshops typically scheduled for US/EU hours. Is there a plan to accommodate diverse time zones?

Answer (Paraphrased from Lloyd & Jo):
Yes. The CBC acknowledged that scheduling almost exclusively around Western time zones has been a weakness. The team pledged to run multiple “office hour” sessions, including in APAC-friendly slots. They’re also looking for local facilitators who can host or co-host calls and gather feedback from underrepresented regions so that no proposals or budget conversations depend on 2 a.m. calls.

3. What Is the Short-Term Timeline for Submitting Proposals?

Question:
Community members noted they had only about a week’s notice to go from expecting an RFP-based system to open submission. Is it realistic to prepare robust proposals so quickly?

Answer (Paraphrased from Lloyd & Tex):
While it’s undeniably short, the committees had to pivot after feedback that DReps wanted more direct review. There is a push to finalize a chunk of the 2025 budget by mid-year, but participants are also encouraged to keep iterating beyond initial deadlines. A significant part of the budget (potentially 30% or more) might still be decided later, giving more time for thorough proposals.

4. Will There Be a “Phased” or “Tiered” Budget Approval?

Question:
Multiple participants suggested a split approach: fund uncontroversial line items right away, then leave the rest for extended debate. Is this happening?

Answer (Paraphrased from Lloyd, Tex, John, & Jo):
Yes. A strong consensus emerged for something like a “70–30” or “MVP-first” approach. Essential or widely accepted items (e.g., core maintenance, urgent R&D) could be passed first. More complex or divisive proposals (such as certain marketing or ecosystem expansions) could remain in discussion longer. This phased method ensures urgent needs are met while giving the community time to refine trickier proposals.

5. How Will Proposals Be Evaluated Without Overwhelming DReps?

Question:
DReps could be inundated with dozens—or even hundreds—of separate budget items. How can they meaningfully review everything?

Answer (Paraphrased from Lloyd & John):
Intersect and committee members plan to roll out improved tooling, such as dashboards or structured forms, so DReps can quickly gauge each proposal’s viability. Some DReps may still choose to delegate subsets of the budget to committees or trusted reviewers. Additionally, big-ticket items might require deeper scrutiny while smaller requests could be bundled or flagged for simpler review.

6. Where Is the “Consensus” Data Coming From?

Question:
Intersect often refers to “community sentiment” or “consensus.” How is that captured, and can everyone see the raw feedback?

Answer (Paraphrased from Lloyd & Jo):
Intersect has been scraping commentary from AMA calls, official forums, and social media (like X/Twitter). They track thousands of posts, coding them by topic. They plan to release aggregated or raw data (likely with minor privacy safeguards) so that DReps, committees, and the broader community can see how consensus determinations were reached.

7. How Detailed Must a Proposal Be?

Question:
Some fear a broad-brush approach could get quick rejections, while extremely detailed proposals are hard to produce under tight deadlines. What’s the right balance?

Answer (Paraphrased from Lloyd & Tex):
Although there’s no rigid template, quality matters. Back up budget requests with cost breakdowns, KPIs, success criteria, and alignment to Cardano’s strategic goals. That said, there will be “office hours” to help refine proposals. The broader guidance: be concise but thorough enough that a DRep or committee member can understand the problem, the proposed solution, and the intended benefit without wading through unnecessary fluff.

8. Should Cardano Spend More Aggressively on Marketing?

Question:
Some participants argue Cardano risks losing a “blockchain arms race” by underspending on outreach. Others worry about draining the treasury with intangible marketing efforts. Where does the CBC stand?

Answer (Paraphrased from John, Jo, & Others):
Opinions vary widely. Some say a bigger marketing budget is essential because “better technology doesn’t always win” unless people know about it. Others prefer a modest, targeted approach, or want to see ROI justifications. There’s agreement that how items are labeled matters. For instance, “influencer marketing” can spark knee-jerk negativity—while a more nuanced phrase like “social media support for builders” might see better reception. Ultimately, DReps will decide which marketing items pass.

9. How Do We Avoid Toxic Debate Over DReps?

Question:
With everything in public view, might social media become a battlefield of personal attacks on DReps who vote “no” on certain proposals?

Answer (Paraphrased from John & Lloyd):
It’s a real concern. Governance often goes hand-in-hand with friction. Over time, track records will speak louder than personal attacks—each DRep’s voting history is on-chain and immutable. Community norms can help: encouraging rational debate, building civility guidelines, and offering safe spaces for DReps to clarify positions. Still, participants acknowledged that tension is partly inevitable.

10. When Do We Start Budget Planning for 2026?

Question:
The AMA featured repeated calls to start next year’s process much sooner to avoid the last-minute rush seen in 2025. Is that realistic?

Answer (Paraphrased from Jo & Lloyd):
Yes. Many want to begin 2026 planning now. Suggestions include in-person and online workshops worldwide (in multiple languages/time zones) to scope out big-ticket items. If the community—and particularly DReps—approve “pre-budget” resources, it would fund these gatherings so that by early 2026, the budgeting process isn’t rushed. Intersect participants generally agreed that a proactive approach would be healthier for everyone.

Final Thoughts

Despite the short-notice pivot to a more DRep-centered budget system, the 13 March 2025 AMA revealed a community willing to adapt. A phased or “MVP-first” approach, improved global inclusivity, clearer proposal guidelines, and robust social media tracking emerged as tangible steps forward. Whether Cardano chooses to spend aggressively on marketing or remain conservative, the newly recognized DReps—and the community behind them—will play a pivotal role in charting its path.

If you’d like to get involved, watch for upcoming Intersect announcements on expanded office hours, proposal workshops, and new discussion threads on the Cardano forum. The path to a healthy, inclusive, and well-funded 2025 budget rests on ongoing collaboration between committees, DReps, and community members worldwide.

Did this recap help clarify the CBC AMA discussion? Leave a comment or share on social media to spark more conversation!

LloydDuhon · 21 March 2025 20:22

March 14, 2025

10 Key Questions from the 14 March 2025 Intersect Cardano Budget Committee AMA

The Cardano Budget Committee (CBC), led by Secretary Lloyd Duhon, hosted an open AMA (Ask Me Anything) session. Attendees included active community participants such as Felix, Nana Safo, and Ken Erik Olmheim. The purpose was to address questions about the 2025 budget process, clarify common misconceptions, and discuss next steps for Cardano’s ongoing governance transition.

1. Is there really a 100,000 ADA deposit required to submit a budget proposal?

Answer (Lloyd Duhon):
“No. Submitting via the form on the Intersect website right now does not require any deposit. Some people heard you’d have to front 100,000 ADA to join the process, but that’s absolutely not the case. If you have a proposal you’d like the community and the DReps to review, please fill out the form. It won’t cost you any ADA.”

What This Means: A major rumor was that entering the new budget process required prohibitive collateral. In reality, any person or team can propose a budget item without risking funds upfront.

2. Are all preliminary “temperature checks” going to happen on-chain (and incur transaction fees)?

Answer (Lloyd Duhon):
“We are not looking at fully on-chain tooling where every single check would be a transaction fee. We want to keep it simple and accessible. Temperature checks will be off-chain, with on-chain reporting only at key stages. The goal is to avoid unnecessary fees.”

What This Means: Early voting and feedback (often called temperature checks) will be conducted off-chain to reduce friction. Cardano’s community can participate in these polls without incurring repeated transaction costs.

3. Is Intersect’s existing debt included in this Treasury budget request?

Answer (Lloyd Duhon):
“No, that won’t be part of any Treasury withdrawal action. Intersect does hold some operating debt—because we’ve been covering expenses prior to the new budget—but it’s not going to show up as a budget line item in this process. Intersect is covering its own obligations from its own income.”

What This Means: Some worried the Committee would offload Intersect debts onto the Cardano Treasury. That’s not happening. The CBC budget proposals deal with future needs, not prior debts.

4. Has the overall budget timeline changed?

Answer (Lloyd Duhon):
“We’re still set on our end-of-March proposal window, and we aim for the first Treasury withdrawal vote around early June. Some teams have to speed up their own prep, but that doesn’t affect the overall schedule.”

What This Means: The core plan remains the same:

Proposal submissions close late March 2025.
Final decisions and potential on-chain votes occur by early June 2025.

5. What happens if consensus isn’t reached by the early June target?

Answer (Lloyd Duhon):
“If we can’t finalize the entire budget, the thinking is at least to fund the core, essential items. Then we can talk further about the rest. We’re calling it the ‘70% budget.’ The crucial stuff that absolutely needs to be done—maintenance, governance tooling, core development—would get funded first. The rest can be a second conversation.”

What This Means: Cardano’s essential operations (maintenance, research, core development) won’t grind to a halt if debates on discretionary items continue. The ‘70% core’ concept gives the community time to keep discussing less-critical proposals.

6. What is this stablecoin proposal that keeps coming up?

Answer (Lloyd Duhon):
“A group in the community wants to explore using stablecoins as a hedge—sort of like a sovereign wealth strategy—to mitigate ADA’s price volatility. They propose depositing some Treasury funds into stablecoins, possibly earning yields. It’s not Intersect’s official idea; it’s an independent group’s proposal. Ultimately, the DReps will decide on it.”

What This Means: Rather than hold all Treasury funds in ADA (potentially volatile), some suggest diversifying into stablecoins. This proposal could help preserve value—but it raises questions about risk, complexity, and alignment with Cardano’s goals.

7. What are the Cardano Foundation’s thoughts on the budget?

Answer (Lloyd Duhon):
“They’ve put forward their viewpoint, encouraging us to cut or streamline certain things and maintain or even boost areas like marketing. This is one voice among many, and we appreciate their input—just like we appreciate Charles’s. The final decision rests with DReps.”

What This Means: The Cardano Foundation provided feedback emphasizing the importance of branding and growth activities while recommending caution on some R&D or operational expenses. Their stance is influential but not definitive.

8. Which budget items are considered essential or “must-have”?

Answer (General Consensus):

Maintenance & Core Development – keeping the chain safe, stable, and updated.

Research & Governance – continued development of protocol improvements.

Intersect Operations – facilitating these processes and communications.

Selective Marketing – ensuring Cardano’s growth and visibility.

What This Means: Not all proposals are equal. The consensus is that certain “core” areas can’t be paused. Proposals that fall outside these domains might be phased, reduced, or moved to later funding rounds.

9. How does this new approach differ from the old RFP process?

Answer (Lloyd Duhon):
“The older approach relied on RFPs, sometimes with big up-front deposits. Now we want as many community proposals as possible early, plus community-driven temperature checks to gauge support. We reduce friction with off-chain polling and keep the final step on-chain.”

What This Means: Instead of waiting for RFP windows and paying large collateral, the new model aims for open calls, a single submission period, and quick, iterative feedback loops off-chain before a final on-chain vote.

10. Will delays jeopardize critical Cardano work?

Answer (Lloyd Duhon):
“Yes, it could be harmful if we delay forever. Some vital work is covered by IO or other entities for now, but they need clarity on future funding. Month-to-month planning is tough. Getting at least that 70% budget in place by June is crucial for resource stability.”

What This Means: While core teams remain operational, indefinite budget uncertainty hinders everything from scheduling to resource allocation. Timely budget approval ensures Cardano continues moving forward efficiently.

Final Thoughts

The 14 March 2025 AMA underscored the community’s active role in shaping the Cardano budget. Concerns ranged from deposit requirements and on-chain fees to timelines and stablecoin strategies. Most agreed that “core” developments must proceed with minimal disruption, while optional items could wait for further discussion.

As the end-of-March proposal window nears, community members are encouraged to submit their ideas and join upcoming AMA sessions. DReps will weigh these proposals carefully, deciding which receive priority funding in 2025—and which might carry over into 2026.

Stay informed and participate in shaping Cardano’s future by visiting Intersect’s official channels for resources, proposal guidelines, and updates.

musikc · 22 March 2025 13:26

I cannot find more information on this, can you please help me? Who defines this 70% budget/what constitutes the things that must be done?

One may argue that maintenance is what must be done and core development and research* (*stated in What This Means) are the none essential and part of the second conversation with everything else.

LloydDuhon · 24 March 2025 18:15

March 18, 2025

10 Key Questions & Answers from the 18 March 2025 Intersect Cardano Budget Committee AMA

Introduction
On 18 March 2025, an Ask-Me-Anything (AMA) session was hosted by the Intersect Cardano Budget Committee (CBC). The meeting brought together a range of participants—committee members, DReps (delegated representatives), and community contributors—to discuss critical budget proposals, a new net change limit suggestion, and the role of committees in managing Cardano’s financial resources.

1. What is the new net change limit proposal, and why does it matter?

Answer:
A group of community members (separate from Intersect) introduced a proposal capping spending at 300 million ADA for 2025 and 250 million ADA for 2026. This figure is close to the previously discussed 350 million ADA from the Intersect side. A key takeaway is that this limit acts as an upper boundary. If future budgets exceed 300 million ADA in 2025, DReps can vote to raise the limit by passing a new net change limit action. This ensures flexibility but also enforces transparent community oversight.

2. Why should the net change limit document be hosted on an immutable link?

Answer:
The Cardano Constitution recommends using immutable references (e.g., IPFS) for major governance actions. If the text were on an editable platform (like GitHub), changes could be made post-approval—potentially undermining the governance process. Immutability prevents stealth edits; what DReps approve is exactly what goes live on the network.

3. Does the net change limit equal the actual annual budget?

Answer:
No. The net change limit simply sets a maximum possible expenditure, not the exact spend. Each year (or term), committees, vendors, and community groups submit budget proposals within that cap. If a legitimate reason emerges (e.g., new high-priority initiatives), DReps can vote to raise the limit to accommodate additional funding.

4. Have committee roles changed now that vendors can apply directly?

Answer:
Committees continue to serve as facilitators and coordinators. They help craft, refine, and bundle proposals. Where direct vendors exist, those vendors submit proposals for DRep approval. Where no vendor is identified, committees can either:

Search for a suitable vendor, or
Request “delegated authority” so they can manage the project themselves.

5. What happens to budget line items without a specific vendor?

Answer:
Some tasks or programs do not yet have an identified service provider. In these cases, committees like the Open Source Committee or Technical Steering Committee may:

Actively recruit a partner or vendor, or
Ask DReps for delegated authority to oversee the work and allocate funds as they see fit.

Either route still involves a final DRep vote for transparency.

6. How does line item OFAC-001525 (Accelerator Research Program) fit in?

Answer:
This budget line focuses on an Accelerator Research Program aimed at incubating or “accelerating” promising open-source or protocol-level projects. Exact details—like total budget, eligibility criteria, and application processes—are still under review by the Open Source Committee. Attendees (like Elaine) were encouraged to join committee meetings or office hours for up-to-date information.

7. Can community members get involved with open-source incubation?

Answer:
Yes! Participation involves:

Attending the Open Source Committee’s weekly or biweekly calls.
Reviewing published documents (Google Docs, GitHub, or IPFS, once finalized).
Keeping an eye on the Intersect Discord for application deadlines and discussion threads.

Committee members are eager to onboard additional contributors, particularly for tasks that lack a designated vendor.

8. What is delegated authority, and how do committees receive it?

Answer:
“Delegated authority” is when DReps vote to allow a committee to self-manage aspects of the budget—such as selecting contractors, distributing stipends, or prioritizing projects. This approach balances efficiency (committees can move fast) with accountability (DReps must formally approve the delegation).

9. When and where do the next AMA and committee meetings take place?

Answer:

AMA Sessions are typically held on Tuesdays and Thursdays at scheduled UTC times. Exact times (e.g., 9 p.m. UTC Tuesdays or 10 p.m. UTC Saturdays) can vary.
Committee Meetings (Open Source, Technical Steering, etc.) often happen weekly or biweekly. They are announced in the Intersect Discord and on the official Intersect calendar.
Recordings and minutes for many sessions are posted later on YouTube or linked in Discord.

10. How can DReps and the broader Cardano community stay engaged?

Answer:

Fill out upcoming surveys released by Intersect to express which responsibilities DReps prefer to keep or delegate.
Monitor Discord & Twitter/X for announcements on proposals, discussions, and newly published budget updates.
Join Office Hours or AMA sessions to ask questions directly.
Review posted budgets on official platforms to see line-by-line allocations.

The committees and Intersect staff emphasize that direct feedback from DReps and community members shapes how the budget process evolves.

Closing Thoughts
From net change limit proposals to open-source accelerators, this AMA underscored both the breadth of Cardano’s governance structure and the importance of transparent community oversight. Whether you’re a veteran DRep or a newcomer interested in how Cardano’s ecosystem decisions get made, staying informed on these developments is vital. Keep an eye on official Intersect channels, attend weekly calls, and don’t hesitate to ask questions in the Intersect Discord.

By working collaboratively—committees, DReps, vendors, and community members alike—Cardano can strike the right balance between innovation, budgetary controls, and decentralized accountability.

Thank you for reading! If you found this article helpful, consider sharing it with fellow community members looking to navigate the Intersect Cardano Budget Committee process.

LloydDuhon · 24 March 2025 19:42

March 20, 2025

Intersect Cardano Budget Committee AMA: A Recap of the Top Questions and Answers

Introduction

On March 20, 2025, Intersect Cardano Budget Committee Secretary Lloyd Duhon hosted an open-session AMA to address community inquiries on Cardano’s decentralized budget process. Community members joined to clarify deadlines, proposal requirements, and the role Intersect plays in facilitating proposals and audits. Below is a summary of the core questions and answers as they were discussed live.

1. “What’s the significance of March 31 for proposal submissions?”

Question: Several attendees asked about the importance of the March 31 date and whether it was a strict cutoff for proposal submissions.

Answer:

Lloyd: “Everything that’s in by March 31 will get moved over to the new governance tool as one batch. That doesn’t mean you can’t submit after March 31. You can. It’ll just go straight into the tool rather than waiting for a big, collective release.”

He emphasized that if you need more time, you can still submit afterward. However, proposals submitted by March 31 are consolidated and made available for Delegated Representative (DRep) review as a group, which could help your proposal gain attention earlier.

2. “Can we still submit proposals after March 31?”

Question: Some participants wondered if the form closes after March 31.

Answer:

Lloyd: “The form never closes. We just have to pick dates along the way for consolidating everything. After March 31, your proposal will appear immediately in the system without batching.”

In other words, March 31 is a batching date, not a final cutoff. He also noted April 24 as another important date for finalizing proposals for the first major budgeting cycle.

3. “What’s Intersect’s main role in this process?”

Question: Attendees sought clarity on Intersect’s function and whether it dictates which proposals get funded.

Answer:

Lloyd: “We’ve been trying to get back into our core role, which is being facilitators—supporters of the community. We’re not trying to set direction without direct delegation. The DReps will make decisions first, and then we follow through.”

Intersect consolidates proposals, offers optional auditing and administrative help, and may propose “gap” items if no community proposals address critical roadmap components.

4. “How do the auditing fees work with Intersect?”

Question: If someone wants Intersect to audit or administer their proposal, how do fees factor in?

Answer:

Lloyd: “We provide services like auditing your proposal to ensure it’s Constitution-compliant, or if you need payments in fiat. That cost has to be part of your proposal. If you need us to administer that, we’ll help you set a separate line item for the audit fee—transparently.”

The Cardano Constitution requires an independent auditor for all funded proposals. You can choose Intersect or another entity.

5. “Will Intersect compete with community proposals?”

Question: If someone from the community proposes a particular service, does Intersect still submit its own version of the same proposal?

Answer:

Lloyd: “If there’s a gap—like a necessary item in the roadmap isn’t being proposed—Intersect will propose it to fill that gap. But if there’s already someone else doing the work, we’re not trying to replicate or compete.”

He stressed Intersect’s role is to facilitate, not monopolize proposals.

6. “What about Intersect’s own budget request?”

Question: Does Intersect have an automatic budget, or is it also subject to approval?

Answer:

Lloyd: “Our own operating budget—around $10 million—is part of our proposal. It’s not automatically approved. DReps still have to vote on it.”

Intersect’s request covers committee stipends, administrative costs, and general operational expenses.

7. “How do we structure proposals to align with the roadmap?”

Question: Some participants asked whether proposals should address one roadmap item or multiple.

Answer:

Lloyd: “Proposals can cover multiple items if it makes sense. Just be clear how your project aligns with each part of the roadmap. Remember, DReps are the final decision-makers.”

He encouraged proposers to use Intersect’s form for clarity and potential feedback, noting that more complex proposals may benefit from additional explanation.

8. “Is there a deadline for final proposal submission?”

Question: Many needed firm dates to plan around.

Answer:

Lloyd: “We’re currently aiming for an April 24 cutoff for the next big consolidation. After March 31, the next milestone is April 24 for finalizing everything for the DReps.”

Any proposal submitted after that date might miss the initial large-scale budgeting cycle but can still be considered subsequently.

9. “Was there a previous ‘round’ of Cardano funding?”

Question: Community members were curious about whether this is a repeat of an earlier cycle or truly the first round.

Answer:

Lloyd: “This is the first fully decentralized budget process. Previously, money came from IO and Emurgo for roadmap development, but it wasn’t a DRep process. We’re doing something brand new here.”

Hence the emphasis on forming clear guidelines, since no one has done it quite like this before.

10. “Will there be more targeted AMA sessions?”

Question: People asked how they could dive into specific areas—technical, marketing, or governance.

Answer:

Lloyd: “We plan on having sessions that are more topic-focused, kind of like we did before. So if the DReps want deeper dives, we’ll have a technical day, a marketing day, a governance day—each with relevant committee experts.”

These specialized AMAs will help the community better understand complex proposals and allow DReps to ask detailed questions.

Final Thoughts

The March 20 AMA highlighted how Intersect and the Cardano community are collaboratively managing the first fully decentralized budget. Submissions remain open, auditing options are flexible, and the DReps hold ultimate decision-making power. Intersect stands ready to fill any gaps, but their main focus is facilitation and support—not competition with community proposals.

Have more questions or seeking clarity?
Visit Intersect’s official channels for the latest updates, proposal forms, and blog posts detailing how to structure your submission. Remember—this budget process is community-driven, so your ideas have a place in shaping the future of Cardano!

LloydDuhon · 24 March 2025 20:27

The DReps make that decision. The 70% is a short hand for the proposals that reach consensus amongst the DReps. the 30% remaining are the proposals which the DReps haven’t reached that level of comfort.

musikc · 24 March 2025 21:21

Ok so it’s a completely made-up fake number to symbolize the dReps approving the things they feel are most necessary. When you say it like that it seems unnecessary, obviously the dReps are going to approve the things that they think are most important and not approve others. I would never in a million years think the dReps were going to approve everything.

I really appreciate the clarity tho, thanks!

LloydDuhon · 24 March 2025 21:44

Or… it’s a number that symbolizes a goal to reach for the DReps, to take some pressure off from trying to get a perfect, all inclusive, budget out the first time. Let’s find an agreeable amount of funding that will work.

It’s definitely not made-up or fake. It’s a humanistic approach to attempt to set a reasonable goal for the community in a first run endeavor.

LloydDuhon · 25 March 2025 15:52

March 25, 2025

Intersect Cardano Budget Committee AMA Recap

Hosted by: Lloyd Duhon, Secretary, Intersect Cardano Budget Committee

On March 25, 2025, Intersect hosted an open “Ask Me Anything” (AMA) session for the Cardano Budget Committee. This forum allowed Delegated Representatives (DReps), community members, and project teams to pose questions about Cardano’s 2025 budget process, treasury funding, upcoming hybrid events, and more.

Below is a recap of the top questions and answers discussed—paraphrased from the conversation to improve clarity, while preserving the essence of each exchange.

1. What is happening on March 31 for the budget proposals?

Question: Several community members asked if March 31 is a strict cutoff date and whether proposals submitted afterward would still be considered.

Answer (as provided by Lloyd Duhon):

March 31 is not a hard deadline; it is the date when Intersect will publish the first wave of proposals for broad community review.
Any proposals submitted by March 31 will appear in that initial release.
Proposals sent later can still be considered; they’ll simply be added to the pipeline after the first batch is made public.

Takeaway:

If you want your proposal included in the first comprehensive publication, aim to submit it before March 31. Otherwise, you can still submit later, and it will be added as part of ongoing reviews.

2. Does each proposal require its own 100,000 ADA on-chain deposit?

Question: Several participants were concerned they could not afford a large deposit just to have their proposal voted on.

Answer (as clarified by the AMA host):

No. When proposals reach consensus and are bundled together, only one 100,000 ADA deposit is placed on-chain for that combined proposal package.
Individual proposers do not need to post 100,000 ADA themselves.

Takeaway:

Once proposals are consolidated into a single “budget bundle,” Intersect (on behalf of the community) will handle the on-chain deposit.
Smaller teams can therefore submit proposals without worrying about prohibitive deposit requirements.

3. How is the “net change limit” of 350 million ADA determined?

Question: Attendees wondered how Intersect arrived at the figure of 350 million ADA and whether it matches 2024 or 2025 treasury inflows.

Answer (from Lloyd and various clarifications):

The net change limit functions as a maximum allowable withdrawal from the Cardano treasury for a given cycle.
The figure of ~350 million ADA reflects projected or recent one-year inflows, so spending in 2025 does not outpace the treasury’s replenishment rate.
Ultimately, DReps will vote on whether 350 million ADA is an appropriate cap.

Takeaway:

The 350 million ADA figure is intended to keep withdrawals roughly in line with the treasury’s inflows.
This keeps the budget process sustainable rather than draining the treasury too quickly.

4. What does the “70%” target mean for proposal approval?

Question: Some participants heard the term “70%” and asked if that was a fixed requirement for passing proposals.

Answer (host explanation):

The “70%” figure is an informal guideline, not a rule.
It reflects the idea that not every funding request has to be 100% perfect or unanimously approved before it moves forward.
If a strong majority (around 70–80%) of the key proposals can be bundled, they can proceed while other items continue discussion.

Takeaway:

“70%” is more about practical progress and momentum than a rigid threshold.
The community can keep refining or adding proposals even after a core set has been approved.

5. Will only top DReps be invited to in-person events? What about smaller DReps?

Question: Concerns arose that a proposed in-person workshop might favor large DReps, excluding smaller ones who lack resources.

Answer (as addressed by Lloyd and others):

The organizing team is committed to a hybrid model—a physical venue (possibly in Nairobi) paired with robust remote participation tools.
Travel stipends or a lottery system will ensure smaller DReps also have a fair chance to attend in person.
No final decision has been made on exact dates or details, but all voices will be included, whether in-person or virtual.

Takeaway:

Inclusivity is a key goal; the plan is not to privilege large-delegation DReps alone.
Hybrid access is essential for global participation in Cardano’s budget discussions.

6. Does Intersect decide who gets funding?

Question: Some community members asked if Intersect’s recommendations equate to final approval.

Answer:

Intersect is primarily a facilitator and coordinator, not the final decision-maker.
DReps, representing the community, ultimately vote on which proposals proceed.
Intersect’s role involves collecting proposals, assisting with audits, and helping produce a consolidated budget bundle—not unilateral decision-making.

Takeaway:

Community governance is still at the forefront.
Intersect’s role is to ensure the process is well-structured and accessible.

7. How important is on-chain transaction volume as a KPI for funding?

Question: Attendees noted an emphasis on “transaction volume” and asked if that’s the only metric that matters.

Answer:

While transaction volume can be a key metric (since it helps grow the treasury via fees), it is not the only relevant KPI.
Other possible success indicators include new wallets created, user adoption in specific regions, marketing impact, open-source contributions, etc.
DReps have wide discretion to weigh whichever KPIs they believe best serve Cardano.

Takeaway:

Transaction volume is a major consideration, but the community can prioritize various KPIs depending on the nature of each proposal.

8. I run a for-profit (or partially open-source) project—can I still apply for treasury funding?

Question: A Hydra-based points system start-up asked whether being a for-profit venture disqualifies them from Intersect’s budget process.

Answer (summarized from discussion):

For-profit projects are not excluded as long as they demonstrate clear value for the Cardano ecosystem.
The deciding factor is whether DReps and the broader community see enough benefit to justify treasury resources—e.g., higher on-chain activity, new partnerships, open-source components, or community growth.
Additional accelerators (e.g., Catalyst, Venture Hub) exist for teams wanting more structured entrepreneurial support.

Takeaway:

The door is open to both open-source and commercial projects, provided they meet the community’s standards and align with Cardano’s growth objectives.

9. What is Intersect’s role in auditing?

Question: Projects wanted to know if Intersect offers financial or technical audits and how much they cost.

Answer (as provided during the AMA):

Intersect can facilitate audits—both financial (for treasury integrity) and technical (via the Technical Steering Committee or external experts).
The exact auditing cost model is not yet finalized; Intersect is still defining how best to structure these services.
Projects are free to choose Intersect or another entity as their “administrator” in the budget process.

Takeaway:

Auditing remains under development, but Intersect aims to standardize it to ensure accountability for projects funded by the treasury.

10. What happens next after proposals are submitted?

Question: Community members asked for a roadmap from submission to final on-chain vote.

Answer (outlined by the AMA host):

Proposal Submission: Fill out the Intersect form; if submitted by March 31, the proposal appears in the first public release.
Community Review: During April, the proposals undergo AMA sessions, focus groups, and iterative feedback.
Hybrid/In-Person Event: Likely in late April or early May (venue and dates TBA), offering deeper collaborative review and final adjustments.
Consolidation & Single Deposit: Proposals that gain strong consensus bundle together, with one 100,000 ADA deposit covering the package.
On-Chain Vote: DReps (and subsequently the broader community) give final approval or rejection.
Funding & Audits: Approved proposals go forward with treasury disbursement, subject to any required audits.

Takeaway:

The process is iterative. Even after a core set of proposals is funded, the Cardano community can introduce and vote on further proposals in subsequent cycles.

Final Thoughts

This AMA highlighted the community’s dedication to transparency and global collaboration. While questions remain about audit costs, exact hybrid event details, and final net change limits, there is a strong sense of momentum as Cardano progresses further into the Voltaire era of decentralized governance.

Key Observations:

Inclusivity is paramount: smaller DReps and new teams should have equal opportunity to present proposals.
Efficiency vs. Perfection: Hitting a “good enough” consensus threshold for the most critical proposals is valued over endless debate.
Process Iteration: This 2025 budget push may be the first of several in the coming year, rather than a single, once-and-done event.

Stay tuned for additional AMAs, official forum updates, and knowledge-base articles from Intersect—especially as we approach the March 31 publication of the first major proposal set. If you are preparing a proposal, reach out to the community or Intersect staff for guidance, and remember that in Cardano, the decision ultimately rests with the network of DReps, representing the voice of stakeholders around the world.

References & Further Reading

Intersect Knowledge Base: Up-to-date guidelines on proposal submissions, AMA recaps, and net change limit definitions.
Gov Tool Proposal Forum: Public feedback and discussions on the 2025 budget, net change limit, and other governance matters.
Cardano Foundation Venture Hub: For teams looking at accelerator or VC-style support.

Article based on the 25 March 2025 AMA transcript, hosted by Intersect’s Cardano Budget Committee Secretary, Lloyd Duhon.

Nana_Kwadwo_Safo · 26 March 2025 05:29

The question that led to this answer is great, I’d like to know further, what is really the gap between the March 15th Net Change Limit and what Intersect proposed yesterday aside the 50M difference? Couldn’t we work with 300M as Intersect’s budget if deducted would still leave some room for community applications?

musikc · 26 March 2025 14:10

If it’s not a made up number then what does 70% figure represent?

Is it 70% of the NCL is approved for spending via these submissions?
Is it that 70% of the proposals submitted are approved?
Is it 70% of the Intersect budget is addressed and approved?

Topic		Replies	Views
Overview - A Cardano Blockchain Ecosystem Budget Budgets 2025	24	1140	7 April 2025
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Cardano Innovation Budget Proposal Budgets 2025	63	1895	16 June 2025
Cardano Governance Support Budget Proposal Budgets 2025	38	685	11 March 2025
Intersect Budget Committee 14 YouTube AI summaries Budgets 2025	0	125	8 February 2025

Budget Committee Public Meetings and AMAs Summaries

Session Overview

Top 10 Questions & Answers

1. What is the Net Change Limit, and why is it set to 350 million ADA for 2025?

2. How do potential changes to the protocol tax rate affect the net change limit?

3. Why not use a percentage of the treasury balance rather than a fixed ADA amount?

4. How will large sums of ADA be disbursed without causing sudden price volatility?

5. What happens to any unspent ADA at the end of the budget cycle?

6. How are multi-year development projects funded without interruption?

7. Who oversees contracts to ensure milestones are met and funds aren’t misused?

8. How often will the budgeting process repeat, and do we expect ‘budget fatigue’?

9. Is the current budget appropriate given Cardano’s growth and treasury size?

10. How can community members participate further and shape these decisions?

Looking Ahead

Title: Intersect Cardano Budget Committee AMA Recap – Community Questions & Key Takeaways

1. What recent changes have been made to the Budget Document?

2. What are the biggest challenges and risks to getting the budget approved?

3. How will the community handle budget reallocation between line items or committees during the year?

4. How does multi-year budgeting work for projects that extend beyond 2025?

5. How does the proposed ‘net change limit’ affect spending throughout the year?

6. What if the Cardano treasury tax rate changes from 20% to 10%?

7. How do Committees coordinate to avoid overlaps or double funding?

8. How will the new procurement process differ from a corporate model?

9. Could Intersect ‘use up’ too much of the net change limit, blocking smaller proposals?

10. Is there progress on in-person gatherings for budget socialization?

Conclusion & Next Steps

Cardano Over Coffee Hosts Intersect’s Lloyd Duhon to Demystify the 2025 Budget Proposals

1. What Is Cardano Over Coffee?

2. Intersect & The 2025 Budget Process: A Quick Recap

3. ADA Price Assumptions & OTC Sales

4. Budget Summits vs. Virtual Sessions

5. Contracts, Non-Disparagement & Legal Details

6. DRep Compensation Discussions

7. Role of CDH & “Why Two Entities?”

8. Calls for Stablecoin Solutions & ROI Tracking

9. Next Steps & Refinements

10. Where to Get Involved

Final Thoughts

Cardano Ambassadors Dive Into 2025 Budget Plans and Net Change Limit Proposals

Introduction

Welcoming a New Ambassador

Budget Overview: Why It Matters

Key Timeline Highlights

Contingencies and Flexibility

Marketing Budget: Learning as We Go

Building Tools for a Better Process

Feedback: Your Voice Counts

Building in Public: Challenges and Rewards

Closing Thoughts and Next Steps

Cardano Ambassadors Monthly Call #2: 2025 Budget Process Update and Open Q&A

1. Setting the Stage for the 2025 Budget

2. The Budget Timeline and Current Phase

3. Highlights from the Q&A with Lloyd

a) Net Change Limit and Thresholds

b) Multiple Budget Proposals

c) Growth & Marketing Committee Concerns

d) Contracting & Accountability

e) Community Participation and Challenges

4. Call to Action: Get Involved

5. Looking Ahead

Have Questions or Want to Contribute?

Governance in Review: What’s Being Proposed for Cardano?

Overview

1. Intersect’s Budget Process at a Glance

Budget Committee’s Core Functions

The Process Working Group

2. Handling RFPs & Contractual Details

Issuing an RFP

Contract Transparency

3. Compensation & KYC Concerns

Intersect’s Operational Staff

Constitutional & Community Roles

4. Community Hubs & Election Considerations

Fostering Global Participation

Votes and Potential Overlaps

5. Product Committee’s Roadmap Highlights

6. Host Facilitation & Community Echo

Key Takeaways & Next Steps

Closing Thoughts

Intersect Cardano Budget Committee AMA Recap

9. **Has Intersect provided a clear way for any Cardano project to submit proposals now?**