Dear Cardano Community, Eastern Cardano Council.
We recently cast a “Unconstitutional” vote on the governance action GA69 “Withdraw ₳1,150,000 for GovTool 12 months active maintenance and development” (ID: gov_action16tdkp3fs0j6303e4utgp8rftdug0ckezr4sslgv8wxdaeq40ngpsq5sr06h).Link GA69 on GovTool: https://gov.tools/governance_actions/d2db60c5307cb517c735e2d0138d2b6f10fc5b221d610fa187719bdc82af9a03#0
Below is a link to the Github page where you can read the ECC’s full rationale.
## Summary
We have determined that this treasury withdrawal governance action is unconstitutional.
## Rationale Statement
The governance action with ID “gov_action16tdkp3fs0j6303e4utgp8rftdug0ckezr4sslgv8wxdaeq40ngpsq5sr06h” and title “Withdraw ₳1,150,000 for GovTool 12 months active maintenance and development” is a Treasury Withdrawal, so is subject to the following sections and guardrails in the Cardano Constitution.
ARTICLE III, Section 5 - This governance action includes a valid URL and hash, which matches the hash of the off-chain documentation referenced. The rationale also meets the minimum content specified in this section.
ARTICLE IV, Section 3, Paragraph 1 - This governance action would not “cause the Cardano Blockchain treasury balance to violate the then applicable net change limit”.
ARTICLE VII, Section 6 - This governance action specifies a withdrawal address, which at the time of assessment is not delegated to an SPO and is delegated to the auto abstain voting option.
Guardrails TREASURY-01a, TREASURY-02a, TREASURY-03a and TREASURY-04a - This governance action fulfils the requirements specified in these guardrails.
However; ARTICLE IV, Section 4 states "Any governance action requesting ada from the Cardano Blockchain treasury shall require an allocation of ada as a part of such funding request to cover the cost of periodic independent audits and the implementation of oversight metrics as to the use of such ada. Contractual obligations governing the use of ada received from the Cardano Blockchain treasury pursuant to a Cardano Blockchain ecosystem budget shall include dispute resolution provisions."
This governance action does NOT specify “an allocation of ada as a part of such funding request to cover the cost of periodic independent audits and the implementation of oversight metrics”, so does NOT fulfil the requirements of this section.
We therefore find this governance action **Unconstitutional**.
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The Constitution Committee (CC) - Eastern Cardano Council (ECC) assesses the constitutionality of governance actions based on the Cardano Constitution. However, if any Cardano community members have feedback or comments on the committee’s interpretation, we’d love to hear from you at any time using the Feedback Loop below;
Best regards,Eastern Cardano Council