Budget Glossary

• Budget / Cardano budget

  • A budget for Cardano’s treasury. Withdrawals cannot be made without a budget in place.

• Budget buckets / Budget category / Category

  • These are broad groupings to help develop a budget, similar to slices in a pie chart representing the budget. Major categories are Marketing, Governance Support, Research, and Core but others may be identified and created throughout budget discussions.

• Budget info action

  • Official on-chain approval of Cardano’s budget, submitted as an info action for DReps and the Constitutional Committee to vote.

• Cardano budget submission process / 2025 budget process / Budget process

  • The steps to arrive at an approved Cardano budget for 2025.

• Cardano Development Holdings (CDH)

  • A trust to fund and facilitate the ongoing maintenance, development, and growth of the Cardano ecosystem. It receives funds from the Cardano treasury where Intersect would then manage contracting, payments, reporting etc. as the administrator.

• Cardano Constitution

  • The on-chain document establishing the highest level governance framework for Cardano. All governance actions must follow the Constitution.

• Cardano Treasury / Treasury

  • The on-chain pot of ada available for the community to withdraw from through on-chain voting.

• Constitutional Committee

  • A role in the Cardano ecosystem whose job is to vote on-chain, indicating the constitutionality of a proposed governance action to be implemented.

• DRep (Delegated Representative)

  • A role in the Cardano ecosystem whose job is representing the community’s opinion through an on-chain vote. Ada owners may select a DRep to vote on their behalf. DReps must approve the Net Change Limit, budget, and treasury withdrawals.

• Governance support (as a budget category)

  • Provides resources for governance structures, including DReps and Constitutional Committee activities, to uphold Cardano's decentralized governance.

• Marketing (as a budget category)

  • Promotes Cardano through marketing, educational programs, community engagement, and global outreach to expand adoption and understanding.

• Net Change Limit info action

  • Official on-chain approval of Cardano’s Net Change Limit (NCL). It will be submitted as an info action for DReps to vote.

• Previous budget proposal

  • In 2024 and early 2025, the Intersect committees created draft budgets based on their expertise. These are being used as guidance to help DReps understand and compare proposals submitted to receive treasury funds.

• Proposal / budget proposal / Budget submission / Proposal to receive treasury funds

  • These terms refer to requests for treasury funds. These are being submitted through a single form at https://www.intersectmbo.org/cardano-budget-submission. They specify proposed work, the amount of ada requested from the treasury to fund the work, and the delivery team. DReps will prioritize and aggregate proposals to create line items in the budget.

• Proposers / Vendors

  • A general term for a group, organization, entity, or individual who has submitted a proposal to receive treasury funds.

• Reconciliation / Reconciliation workshops

  • Reconciliation is a special process used in the US Government to make changes to and pass the budget. In the 2025 budget process for Cardano, the term reconciliation describes the process of finalizing changes to the Cardano budget. It will include selecting between competitors, earmark funds for all of the critical ecosystem activities, and generally approving a draft budget to be put on-chain for voting.

• Treasury withdrawal / Treasury withdrawal action / Treasury withdrawal Governance action

  • An on-chain governance action that moves funds from the Cardano treasury to the recipient(s) specified within. It requires a vote by DReps and the Constitutional Committee to pass.

• Research (as a budget category)

  • Supports ongoing blockchain research and innovation.

• Core / Core development (as a budget category)

  • Essential operations and technical improvements, maintaining and expanding Cardano’s core blockchain features.