Net Change Limit

Governance Budgets 2025
22

The metadata doesn’t define the net change limit. Your intro talks about it being the max amount of ada that can be withdrawn from the treasury in a given period, but that’s not in the metadata.

2 Likes
23

Detailed analysis why I will not approve a net change limit of more than 300 million ADA:
https://forum.cardano.org/t/fundamental-critcism-of-the-budget-process/143519#p-367722-net-change-limit-2

1 Like
24

With regards to the NCL, setting aside for the moment that there is no concrete definition, no resolution process in case there is an issue, no process outlining how or when it can/should be set or changed, no default values or timelines, no best practices for or details on determining the value - really any specifics or details of any kind, could someone help me understand how the following contradiction plays out?

Constitution Definitions
  1. Net Change Limit: A modifiable Guardrail proposed and set via an Information Governance Action (Info Action). This Guardrail protects the sustainability of the Cardano Treasury by preventing excessive withdrawals.

and

8. GUARDRAILS AND GUIDELINES ON INFO ACTIONS

Info actions are not enacted on-chain.
No guardrails are imposed on Info actions.

but

GUARDRAILS

TREASURY-01a (x) A net change limit for the Cardano treasury’s balance per

period of time must be agreed by the DReps via an on-chain governance

action with a threshold of greater than 50% of the active voting stake

25

What they seem to mean is: In general, info actions are just non-binding opinion polls. They are never executed on-chain and therefore don’t need guardrails.

But they have invented some ad-hoc use cases for them – net change limit and budgets – where they are not just opinion polls, but do have (off-chain) consequences on what the constitutional committee shall deem constitutional. Not really info actions then anymore.

The whole budget process is an afterthought.

But, yes, that is one of the parts where the constitution is not well-written. Don’t look at me. I voted against this thing.

26

I can’t stop laughing :laughing:

1 Like
27

So: Could the budget committee either

  • show the research they did (or let others do) into the projected treasury inflow and why I’m wrong,
  • acknowledge that the projection was way too optimistic and change their proposal to 300 million ADA, or
  • argue why they want to keep it at 350 million ADA even if it is then not “sustainable” in their sense of the word anymore?
1 Like
28

This is a feature request, but developing an information governance action to set a certain DRep or SPO voting threshold and force voting to terminate if it is reached at an epoch boundary might be useful, at least for operating the current constitution…