2025 Cardano Budget Proposal - A Cardano Blockchain Ecosystem Budget
Collated by the Intersect Cardano Budget Committee on behalf of all Intersect Committees and contributing working groups
Version 0.2 - Draft February 10th, 2025
Abstract
This budget proposal is a living document, shaped by the collective input of the Cardano community. Nothing has been decided, and every element—from funding allocations to the Net-Change-Limit—remains open for discussion and refinement. Over the coming weeks, proposals will continue to evolve based on community feedback, market conditions, and on-chain approvals.
This document is a work-in-progress and is released for community consultation. All figures, timelines, and proposals are indicative and subject to change based on community feedback, market conditions, and on-chain approvals. Nothing herein is final.
We extend our deepest thanks to the 100+ members who have contributed to this process so far. Your insights, expertise, and commitment to Cardano’s future are invaluable. Now, we invite the broader community to join this conversation, build on ideas, challenge assumptions, and help refine a budget that truly serves the ecosystem. Your participation will ensure that Cardano’s financial planning remains transparent, inclusive, and forward-thinking.
Let’s shape this together.
1. Executive Summary
This document presents a holistic draft and current work-in-progress of a 2025 Cardano Blockchain Ecosystem Budget, facilitated by the Intersect Budget Committee. The Budget Committee consists of Intersect members elected by their peers, with the first elections held in October to fill 50% of the seats. The remaining 50% will be elected in April this year. It is responsible for gathering and consolidating budget requests from the seven Intersect committees:
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Technical Steering Committee
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Open Source Committee
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Cardano Product Committee
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Cardano Civics Committee
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Growth & Marketing Committee
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Membership & Community Committee
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Cardano Budget Committee
2025 Budget Overview
This draft budget proposal outlines the indicative financial requirements put forward by Intersect’s committees and members. It serves as a foundation for community consultation and refinement, ensuring that funding priorities align with the needs of the broader ecosystem. By incorporating input from a diverse range of stakeholders through our committees, the proposals capture multiple perspectives and provide a transparent basis for discussion and decision-making on budget allocations.
This draft budget reflects input from well over 100 members across committees and working groups. It is now released for broad community review and refinement. All figures are indicative and subject to change based on ADA price fluctuations, community feedback, and on-chain approvals.
2. Intersect as a member-based organization
Intersect was incorporated on December 8th, 2023 as a not-for-profit corporation located in Wyoming, USA.
As a not-for-profit, member-based organization, Intersect focuses on supporting and championing Cardano’s governance and technical development, acting as a steward for the network’s growth and decentralization. It helps to facilitate the rollout and evolution of Cardano’s on-chain governance, supports the delivery of Cardano’s product roadmap, and fosters collaboration among ecosystem participants, including all ADA owners and those interested in Cardano—particularly developers, stake pool operators (SPOs), delegated representatives (DReps), and other stakeholders.
It operates as a membership-driven entity, meaning its direction and priorities are influenced by its members, which include individuals and organizations involved in Cardano’s development and governance. Intersect currently has 1,800 paid members, including individuals and enterprises. In addition, there are over 2,700 associates, those who have joined for free, to contribute to working groups and hear the latest developments as they happen. Membership at Intersect is always open, and new members are welcome to join and support various initiatives, including the budget and roadmap.
At its core, Intersect represents the collective voice of its members, helping shape Cardano’s future so that it reflects the contributions of those who actively drive its success.
Last year
Intersect is just over a year old, with 2024 marking our first full financial year. Our end-of-year accounts are currently being prepared and will be ready in March - submitted on-chain, including complete financial records and Wyoming state filings.
In December 2024, we published our end-of-year report, highlighting everything members have achieved so far.
Intersect as an Administrator and financial reporting
As the Constitution outlines, any treasury withdrawal should include a named Administrator and apply an appropriate audit charge to ensure financial accountability and transparency. This audit charge has been designed to cover the cost of Intersect performing its role as the administrator of Cardano Development Holdings and as supporting Intersect committees and members in advancing Cardano.
This audit charge is the current model for funding Intersect. As a not-for-profit, this charge covers the operating costs of running a member-based organization like Intersect—unlike traditional open-source foundations, which typically rely on high annual membership fees.
Important to note, this funding approach remains open for community feedback. Alternative models, such as a flat funding request to support Intersect in fulfilling its mission, could be explored if there is broad support for a different structure. As a not-for-profit, Intersect is mandated to ensure that surplus funds are used to strengthen the ecosystem, enhance member services, and support the broader Cardano community.
Financial reporting
Audit and reporting commitments:
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Quarterly financial reports detailing budgetary positions and fiat/ADA reserves - submitted on-chain.
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Annual audit by a globally certified auditor.
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Transparent tracking of surplus fiat/ADA and, depending on community approval.
Cardano Development Holdings
The Cardano Development Holdings (CDH) was established in the Cayman Islands as a crypto-friendly jurisdiction to fund and facilitate the ongoing maintenance, development, and growth of the Cardano ecosystem. It serves as the primary recipient of direct funding from the Cardano treasury and can also accept donations from external sources designated for Cardano’s development. All assets owned by the CDH, are administered by Intersect under governance oversight.
Intersect acts as the administrator of the CDH, ensuring that all treasury funds and other assets are managed in accordance with its strict mandate. Third parties and suppliers interact with CDH exclusively through Intersect, creating a counter-party relationship, facilitating contract execution via our open procurement process, feedback loops and approval via our member-led committees or decisions made through Cardano’s on-chain governance actions.
As administrator, Intersect ensures that funds are allocated and used effectively through established procurement and financial oversight processes (for more information, please refer to the Intersect website under Operational Services)
Practical benefits of an intermediary legal vehicle for treasury funds
Using an intermediary entity like CDH to receive treasury funds provides key benefits for accounting, legal clarity, and liability management, including:
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Regulatory and legal clarity – As a legally incorporated entity, CDH provides a structured approach to holding and managing funds, ensuring compliance with financial and regulatory obligations.
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Separation of treasury and operational responsibilities – Distinguishing fund ownership (CDH) from fund administration (Intersect) reduces financial risk exposure, and improves transparency.
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Liability management – CDH isolates financial liabilities, ensuring that contractual obligations, vendor payments, and other financial transactions do not create undue exposure for the broader Cardano ecosystem.
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Efficient accounting and reporting – An entity for receiving and disbursing funds simplifies financial records, making audits and financial oversight more structured and transparent.
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Facilitates third-party engagement – Since third parties and suppliers engage with CDH through Intersect, all contracts and financial obligations are managed through a structured, committee-led governance process.
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Strategic jurisdictional benefits – The Cayman Islands was chosen as the incorporation jurisdiction due to its well-established legal framework for international financial entities, favorable regulatory environment for decentralized ecosystems, and strong financial services sector.
Given these benefits, other budget proposals and Administrators outside of Intersect may also consider establishing similar legal vehicles to improve accountability, reduce risk, and ensure regulatory compliance when managing treasury allocations.
3. Consultation phases
Phase 1
In October 2024, the Budget committee, along with all other committees at Intersect, opened the first consultation phase to gather feedback on what a budget for Cardano should include, how it should be managed, and other topics important to the Cardano ecosystem.
The consultation period included hosting over 15 open community calls (for both members and non-members), where representatives from the Budget Committee and other Intersect committees shared their ideas and recommendations. Additionally, weekly calls were held for delegated representatives (DReps) and the broader community to provide insights into the current approach and process.
In parallel, the Budget committee launched a survey to gather input on community development priorities for the coming year (and beyond). The survey aimed to collect both quantitative and qualitative data on various budget-related topics, with the goal of understanding priorities for the 2025 budget process facilitated by Intersect and identifying ways to better support member-led decision-making. Over 200 respondents provided valuable perspectives to guide the process.
The results and key learnings from phase one, including any pivots, suggested:
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Present multiple budgets for community consideration rather than a single, larger budget proposal. Accordingly, each funding track (or “bucket”) should have its own budget Info Action to be voted on by the ICC and DReps. Once a funding track (as an Info Action) is ratified by the ICC and DReps, corresponding Treasury Withdrawal Actions can follow.
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- For example, if there are five funding tracks, there will be five Info Actions and at least five Treasury Withdrawal Actions submitted on-chain for community consideration.
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The Net-Change-Limit should not exceed Treasury income for the same period. For instance, in 2025, the Treasury is projected to grow by approximately ₳350 million. A budget proposal submitted on behalf of members and committees at Intersect should not exceed this amount. Furthermore, the Net-Change-Limit should leave ample headroom for budgets that are not part of any initial Intersect proposal to be submitted on-chain.
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Emphasize radical transparency in accounting and auditing of Treasury funds, including the use of smart contracts and on-chain verifiability wherever beneficial.
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Carefully consider and document how any surplus or unspent ADA can be reutilized, reinvested, or returned to the Treasury.
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- Note: Any solution must comply with the interim and/or delegate-approved Constitution (whichever is in effect as per CIP-1694).
Phase 2 - February to May 2025
Following phase one’s initial discussions and idea-gathering, phase two focuses on detailed off-chain consultation and proposal refinement - encapsulated by this document, supporting material, and community engagement. This phase spans at least four weeks and is intended to build consensus. Phase two comprises two key stages:
Four-week community socialization
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Where: Cardano Forum, virtual meetings, X Spaces, events, and other community-driven platforms.
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What: During this period, draft proposals are collaboratively refined, with special attention given to improving the budget and expected outcomes.
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Submission: of the Net-Change-Limit—determining how much can be withdrawn from the Treasury in a given period—its final value and associated metadata may be submitted for on-chain voting immediately after this six-week socialization window.
GovTool Proposal Discussion
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How: Depending on community feedback from the first few weeks, specific proposals will be moved to GovTool in the Proposal Discussion section. Here, they undergo proper metadata formatting and further community scrutiny through polling tools and a dedicated comments section.
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Goal: Ensure that each proposal is thoroughly vetted, with opportunities for continued feedback and iterative improvements.
Total Timeline
Combining the initial six-week socialization with the subsequent GovTool discussion phase, off-chain consultation is expected to last at least six weeks before any budget proposal is submitted on-chain. Based on polling via GovTool and community sentiment, this timeline may be extended if the community requests additional refinements or if more time is needed to reach a consensus.
As we progress through Phase Two, the Budget Committee will coordinate with the committees to hold periodic votes to determine whether proposals are ready to be submitted on-chain as Info Actions. Based on these votes, the committee will make recommendations to Intersect to raise them on their behalf.
Intersect’s role in phase two
During phase two, Intersect’s Budget Committee serves as the primary facilitator of community engagement. By actively listening, the committee gathers and documents feedback from channels such as the Cardano Forum, virtual meetings, and X Spaces, then uses these insights to refine proposals, clarify budgets, and adjust expected outcomes.
Throughout the process, Intersect will communicate updates and explain the rationale behind any changes. Finally, once broad consensus emerges, the Committee prepares proposals for on-chain submission via GovTool, ensuring proper metadata formatting and guiding the community toward consensus on critical parameters like the Net-Change-Limit.
4. Management of funds
The Budget Committee emphasizes that all current figures and allocations are dynamic and provisional. Proposals will be iteratively refined based on quarterly financial reports, ADA price movements, and—critically—community input - ensuring alignment with ecosystem priorities as they evolve. A Net-Change-Limit, budget proposal/s, and subsequent Treasury withdrawals require on-chain approval by DReps and the Interim Constitutional Committee, providing multiple checks and balances before any budget becomes “operational”.
Key operating principles:
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Transparency: All financial transactions will be audited by at least one third-party, and quarterly reports will be published for community review.
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Flexibility: Budgets may be adjusted based on ADA price volatility and community feedback.
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Accountability: Funds will be released via smart contracts tied to milestones, ensuring deliverables are met before further disbursements. Tracking surplus ADA and, depending on community approval, its reallocation in subsequent budgets or return to the Treasury.
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Inclusivity: All initiatives and line items in the budget will be open for bidding through a transparent and inclusive procurement process.
Cardano’s first Net-Change-Limit
To maintain the sustainability and stability of Cardano’s treasury, a Net-Change-Limit has been suggested, which would, if approved, set the constitutional and democratic mandate for the amount of ada that can be withdrawn from the Treasury over the 2025 period.
Between January and December 2025, spanning approximately 73 epochs, the total indicative withdrawal limit has been suggested at 350 million ADA. This figure aligns with the projected treasury growth for 2025, estimated at approximately 350 million ADA, positioning it as a balanced budget framework - funding the ecosystem for 2025 and leaving net Treasury resources unchanged from 2024 levels.
The intent is to ensure that expenditures remain sustainable while enabling strategic investment in ecosystem growth. This figure remains subject to further review and on-chain approval as the ecosystem seeks to balance prudence with a forward-looking approach to treasury allocation.
This approach aims to:
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Balance ecosystem growth with responsible treasury management
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Ensure funds remain available for ongoing and future initiatives
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Provide clarity and predictability for all stakeholders
The Budget Committee has prepared the draft Net-Change-Limit metadata, which can be found here review and here for feedback. In the coming days, we will publish it on GovTool.
5. Work packages
These can best be thought of as procurement briefs capturing the requirements that Cardano and institutions (including, but not limited to, Intersect) need vendor support to deliver. Following the necessary on-chain approvals, these proposals can come to fruition through a variety of contractual agreements. All delivered by members of Intersect through an open, transparent, and inclusive procurement process.
The procurement process should ensure that Treasury funds are allocated based on a structured evaluation matrix that considers the capability to deliver against the Committee Requirement Document (CRD), the value of the proposal, and a realistic delivery timeline aligned with ecosystem expectations.
Additionally, the procurement process will incorporate transparency and feedback loops, providing the community with visibility into proposals and enabling members to review and assess proposals based on their expertise and capabilities.
Once contracts are awarded, the Delivery Assurance team will oversee execution, ensuring that contractual obligations are met through service level agreements (SLAs) and risk management processes. This includes maintaining ongoing feedback loops with the committees that commissioned the work on behalf of the Cardano ecosystem.
Steps from budget proposal to awarded contract
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Budget proposal and on-chain approval
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A budget proposal is developed, detailing funding requirements for grants and work packages.
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The proposal undergoes community consultation and is submitted for on-chain approval by DReps and the ICC.
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Procurement process
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Committees create and approve Committee Requirement Documents (CRDs), outlining scope, deliverables, and evaluation criteria, etc
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An open and transparent procurement process allows Intersect members and vendors to submit proposals.
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Submissions are evaluated by the committees based on capability, value, and alignment with ecosystem expectations.
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Proposal review and selection
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Community feedback loops ensure transparency and allow stakeholders to assess proposals.
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Reviewers are selected from the community based on their skillset and allocated proposals for review.
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Proposals are reviewed against structured evaluation criteria, ensuring fair and merit-based selection.
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Contracts are awarded by the committees to the most suitable vendors, subject to due diligence checks.
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Contract execution and delivery assurance
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The awarded vendors enter into service agreements (SLAs) with clear deliverables and milestones.
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The Delivery Assurance team oversees execution, monitors progress, and mitigates risks.
Ongoing feedback loops ensure alignment with the commissioning committees and broader ecosystem goals.
You can read more about the delivery assurance function here.
6. Budget Bucket proposals
Below is a summary of the budget requests from each committee. All figures are indicative and subject to change based on community feedback and on-chain approvals. In total, the current figures indicate a budget of ₳262,757,544 for 2025. As a result, some budgets reflect a six-month plan.
Cardano Core Budget
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Technical Steering Committee: ₳99,304,400
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Open Source Committee: ₳5,885,000
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More details here
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You can provide feedback here
Cardano Research Budget
Cardano Governance Support Budget
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Cardano Civics Committee: ₳11,270,500
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Cardano Budget Committee: ₳1,900,000
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More details here
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You can provide feedback here
Cardano Growth & Marketing Budget
Cardano Innovation Budget
Funding Intersect
- Intersect is seeking ₳20,000,000 to cover a 12 month period (Jan-Dec) to fund its role as the administrator, eliminating the need for a 5% Delivery Assurance fee. This funding will fully support the execution of our 2025 roadmap, covering all operational costs and enabling us to strengthen our capabilities, expand our initiatives, and enhance the value we provide to our members and the broader Cardano ecosystem.
Additionally, see here for the work-in-progress master spreadsheet, which provides full transparency into the current numbers on a single Google Sheet.
Approach to ADA price
Between October 2024 and January 2025, Intersect’s committees began identifying areas to include in the budget, sharing preliminary findings and proposals with the community. During this period, all costs were initially estimated using an ADA-to-USD rate of $0.30, with the understanding that this rate would be updated before any on-chain submission.
As you’re all aware, ADA’s price fluctuated over the Christmas period, climbing above $1.00 at one point, and dipping to a low of $0.61 in February. Given this volatility, we are recommending that the budget use a $0.50 ADA-to-USD rate.
Keynotes for community review:
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The proposed Net-Change-Limit of 350M ADA is subject to adjustment and, ultimately, on-chain approval following community feedback and market conditions.
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Quarterly reviews will ensure alignment with ecosystem priorities and financial sustainability.
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Ada price will be determined by the markets at the point of sale, identified during the procurement process.
7. How to get involved and share your feedback
Over the next six weeks, there will be plenty of ways to participate and make your voice heard. Whether you want to engage casually or get more involved, here’s how you can shape the ideas and proposals:
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Add feedback on the Cardano Forum – Each proposal has its own thread, making it easy to track discussions and provide input. We anticipate this being the best way to log your feedback.
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Join online meetings and calls – The budget committee will host a series of online discussions throughout February and March, with dedicated sessions on specific proposals.
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Comment on social media – Share your thoughts on X (Twitter), LinkedIn, and other platforms.
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Join X Spaces – Take part in live discussions and contribute in real time (keep an eye on our X account!
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Attend in-person events (TBD) – More details will be shared soon, but expect a global spread.
Online calls
Throughout February and March, the budget committee will hold various online calls, including sessions focused on specific proposals. These calls will be a chance to ask questions, share perspectives, and get a deeper understanding of the budget and governance process.
You can RSVP and set your calendars here: Cardano Budget Process · Events Calendar
8. Closing
The 2025 budget proposal represents a significant milestone in Cardano’s governance evolution, but it remains very much a work-in-progress. The process ahead is one of open dialogue, iteration, and refinement, with the ultimate goal of ensuring that funding allocations align with the ecosystem’s priorities and long-term sustainability.
We encourage all ada holders to participate—whether by expanding or refining an idea, providing constructive feedback, challenging assumptions, or proposing improvements. A robust and well-informed debate will lead to stronger, more effective proposals that better reflect the collective wisdom of the community.
Through respectful discourse and shared commitment, we can shape a budget that serves the best interests of the ecosystem and strengthens Cardano’s future.
Let’s continue building together.
) isn’t really a paramater, but just the amount of blocks minted in a given epoch divided by the expected amount of blocks (21,600); which also has a minor influence on reserve depletion hence treasury income, but not so big as ρ and τ.
