Rationale for Voting YES on the Third NCL Proposal
I am voting YES because setting a Net Change Limit (NCL) is a constitutional requirement under Article IV, Section 3 of the Cardano Constitution. Without it, no Treasury funds can be accessed—meaning no budgets can be approved and no spending can take place. This would halt critical maintenance and growth across the Cardano ecosystem.
The proposed NCL of 200 million ada represents a prudent and balanced approach:
- It enables the necessary funding to support and scale Cardano in 2025, while safeguarding against rapid depletion of Treasury resources.
- With annual inflows of approximately 350 million ada, the proposed cap ensures the Treasury continues to grow even as spending begins.
- As Cardano embarks on its first community-led budgeting process, this approach emphasizes caution and learning. It allows future NCLs to be fine-tuned as governance structures and audit mechanisms mature.
- It strikes a balance between empowering the community to fund vital initiatives—development, maintenance, scaling—and protecting the ecosystem from excessive or poorly planned expenditures.
- It reinforces Cardano’s long-term sustainability, ensuring a healthy Treasury not just for 2025, but for years to come as governance evolves.
Ultimately, a YES vote keeps Cardano governance moving forward in alignment with its Constitution—avoiding the risk of stagnation that could undermine the ecosystem’s progress and innovation.
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