HeptaSean:
Based on the treasury inflow of around 4% of the reserves at the beginning of each year, I project an inflow of 4% × 7.5 GADA = 300 MADA (even a little less) for 2025. So, the guesstimate of 350 MADA by the Intersect Budget Committee is already too high to serve their stated goal of at least preserving the current treasury stock.
What has happened to the Treasury Inflows of 2024, has the funds been used or they are available for community use? I am asking because I learnt that the Intersect Net Change Limit is set based on 2024 Treasury Inflows.
Intersect’s Budget Committee suggested that spending only what was earned in the previous year (“living within our means”) reduces the risk of forecasting errors. Rather than rely on uncertain future income, the approach uses the verifiable amount of ADA minted or accrued in the preceding year. This mitigates potential overspending and promotes prudent Treasury management.