FAQs

Budget Timeline

Where Can I Learn the Basics of the Cardano Budget Process?

Read the latest news release here: https://intersectmbo.org/news/understanding-committees-in-intersect-0

In summary:

Proposal Submission: Fill out the Intersect form; if submitted by March 31, the proposal appears in the first public release in Gov.Tools.
Community Review: During April, the proposals undergo comment, AMA sessions, focus groups, and iterative feedback.
Reconciliation Events: Likely in late April or early May (venue and dates TBA), offering deeper collaborative review and final adjustments.
Consolidation & Single Deposit: Proposals that gain strong consensus bundle together in a budget proposal, with one 100,000 ADA deposit covering the package.
On-Chain Vote: DReps give final approval or rejection.
Funding & Audits: Approved proposals require one more on-chain vote for the treasury withdrawals and will be subject to audits and oversight.

The process is iterative, and will be adjusted to suit DRep needs. Even after a core set of proposals is funded, the Cardano community can introduce and vote on further proposals in subsequent cycles.

Where Will The Budget Discussions Take Place?

The budget discussions should take place primarily in the new features added to GovT.ools to support community reviews and DRep polling of proposals to receive treasury funding. There will also be workshops hosted to gather live feedback.

When Will The 2025 Budget Be Finalized And Treasury Funds Withdrawn?

Intersect is hoping to draft a 2025 budget by May 1, 2025. Intersect will continue facilitating a budget discussion as-needed to address elements for 2025 that require more time to review. This schedule allows the first treasury withdrawals to begin in June 2025.

The timing of when the Net Change Limit, budget and subsequent treasury withdrawal actions pass on-chain determines the final dates.

Has The Overall Budget Timeline Changed?

No. The target is still the end-of-March to gather most proposals, and we aim for the first Treasury withdrawal vote around early June.

What Happens If Consensus Isn’t Reached By The Early June Target?

Not every funding request has to be 100% perfect or unanimously approved before a budget moves forward. If a strong majority (around 70–80%) of the key proposals can be bundled, they can proceed while other items continue discussion. The thinking is to develop a budget that funds the essential items - the ‘70% budget’. Then more time can be taken to review and decide on the remaining items, possibly generating a second budget proposal.

How Can Dreps And The Broader Cardano Community Stay Engaged?

Monitor Intersect’s Discord & X for announcements, including the public release of proposals to receive treasury funding on Gov.Tools.
Review and provide feedback on proposals: Gov.Tools.
Join scheduled budget sessions: https://lu.ma/cardanobudgetprocess
Committee Meetings are announced in the Intersect Discord and on the official Intersect calendar. Recordings and minutes for many sessions are posted later on YouTube and the Committee knowledge base (https://committees.docs.intersectmbo.org/).

Direct feedback from DReps and community members is encouraged and shapes how the budget process evolves.

Are Multi-Year Or Short-Term Budgets Possible?

The Constitution allows for any duration or time period, but sets an expectation of a one year minimum. For 2025, Intersect plans a June–December budget. In 2026, the committee hopes to have a full January–December budget and a more refined process from lessons learned this cycle.

Budget

Are Budget Figures Set?

No. DReps will be asked to review proposals that can comprise a budget. This process will be used to determine the budget figures.

How Will The Budget Ratification Work On-Chain?

The Net Change Limit proposal must first pass a DRep vote with >50% approval. Once the Net Change Limit is ratified, separate “info actions” for budgets will be voted on by DReps and the Constitutional Committee. If approved, those budgets then become actionable, and associated treasury withdrawals can be put on-chain for approval to withdraw the funds.

Are Other Organizations Allowed To Submit A Budget?

Yes. The Cardano Constitution states: “Any participant in the Cardano Community may propose a Cardano Blockchain ecosystem budget at any time.”

While multiple budgets can be submitted and approved, they should still fall within the approved Net Change Limit. The Net Change Limit encourages budget proposers to coordinate, ensuring they stay within the cap.

Can Budgets Pass Individually—Or Must It Be All Or Nothing?

Yes, more than one budget can be passed. Any budget proposal that reaches the >50% DRep threshold and Constitutional Committee vote will pass —and can be funded. For example, Core and Research could pass first with others containing unresolved community concerns delayed, revised, or re-voted as needed.

How Will The Budget Process Handle Shifting Needs?

DReps can approve shifting funds from one bucket to another, or to allocate additional funds to a previously approved budget item. This will be done through info actions.

Are There Still Budget Buckets?

The budget will be discussed by topic, anchoring on but not limited to these budget buckets established by Intersect:

Core: Node development and related fundamental infrastructure.
Research: Advanced protocol research, previously handled mainly by IOG, but now open to other contributors.
Innovation: Community grants, including Project Catalyst.
Governance: Funding items like DRep or Constitutional Committee compensation and governance tooling.
Growth & Marketing: Marketing, events, and hubs (regional or topical) to grow the Cardano ecosystem.

How Do We Handle Duplicated Or Redundant Funding Requests?

DReps get to decide between (or to fund both) competing proposals to receive treasury funds through the 2025 budget process.
Not Necessarily Bad: Some redundancy (a.k.a. “coopetition”) can spur innovation. However, major overlaps—where the exact same deliverable is funded twice—will be discouraged through diligence and committee reviews.
Audit & Oversight: Intersect and the Budget Committee plan to maintain an audit trail. If a project has already received Catalyst funding, that context should inform subsequent requests.

Which Budget Items Are Considered Essential Or “Must-Have”?

This is to be determined by the consensus of the community and with expert input, including from Intersect’s committee members, across each bucket.

How Does Catalyst Funding Fit Into The Treasury Discussion?

Through reviewing proposals to receive treasury funds, DReps can decide whether innovation projects belong in Catalyst or if they instead approve them within the 2025 budget for direct Treasury funding.

What Happens To Budget Line Items Without A Specific Vendor?

If the community wants to fund tasks or programs that do not have an identified service provider, anybody may:

Actively recruit a partner or vendor to submit a proposal through Intersect's form, or
Ask DReps for delegated authority by submitting a proposal to oversee the work and allocate funds as they see fit.

Why Was There A “Course Correction” In The Budget Process And How Is It Different?

The course correction was a response to feedback and challenges with the first budget process. Changes are being made to:

Gain consensus on Cardano product funding priorities via the product roadmap
Align Intersect Committees to support the Cardano community and DReps with their perspectives on funding priorities in addition to the product roadmap
Allow from anyone seeking treasury funding for projects or programs to submit a proposal to receive treasury funding
Give the Cardano Community via DReps the final determination of which proposals to include in the budget(s)

The previous approach relied on RFPs, sometimes with big up-front deposits. Now Intersect wants as many community proposals as possible early, plus community-driven temperature checks to gauge support. DReps, rather than Intersect, selects vendors.

How Are Multi-Year Development Projects Funded Without Interruption?

A single info action can outline multi-year milestones. However, DReps often prefer milestone-based or annual approvals to ensure accountability. For instance, a project might propose a three-year plan, but it should break out annual or milestone-based treasury withdrawals—rather than demanding an entire multi-year sum upfront with no guardrails.

How Important Is On-Chain Transaction Volume As A KPI For Funding?

While transaction volume can be a key metric (since it helps grow the treasury via fees), it is not the only relevant KPI. Other possible success indicators include new wallets created, user adoption in specific regions, marketing impact, open-source contributions, etc. DReps have wide discretion to weigh whichever KPIs they believe best serve Cardano.

Budget Administration

Who Ensures Milestones Are Met And Funds Aren’t Misused?

This is the job of the administrator. Projects are free to choose an administrator, and Intersect is offering this service to the ecosystem.

Intersect employs a Delivery Assurance function—staff dedicated to contract management, auditing milestones, and holding parties accountable.

On-chain solutions—like automated milestone releases—are part of the long-term plan, reducing reliance on any single off-chain authority.

What Is Happening With Smart Contracts For Treasury Withdrawals?

A working group is reviewing smart-contract solutions to handle payments. One proposed feature is a “stop-payment” authority, where a trusted council (multi-sig) can freeze further disbursements if a project fails to meet milestones. This adds extra oversight and ensures misused or unused funds can return to the Treasury.

Is A Dao-Like Approach Possible For Managing Budget Funds?

Yes. The Constitution supports using "smart contracts and other on-chain mechanisms” to manage budgets. Any proposal to use a DAO or multi-sig structure should be sufficiently detailed, secure, and earn DRep approval.

Intersect has commissioned the development of a multi-sig smart contract to better govern the funds it administers.

How Will Budget Administrators Minimize Ada Sell Pressure?

Treasury and financial experts from CF, IOG, EMURGO, and Intersect have been testing over-the-counter sales for ADA to avoid large order-book dumps. Most contractors quote fees in fiat terms, so Intersect's goal is a measured, consistent conversion schedule without spiking volatility on retail exchanges. Internal policies ensure that no single party can draw the entirety of the allocation without multi-stakeholder approval.

How Will Intersect Handle Price Volatility And Stablecoins For The Treasury Funds It Administers?

Intersect has been exploring various treasury management strategies, including pegging some portion of reserves to stablecoins. The goal is to minimize price risk without causing undue market impact. The team has also considered negotiating large over-the-counter sales directly to buyers (whales or institutions) to avoid pushing prices down on open markets.

What Is This Stablecoin Proposal That Keeps Coming Up?

A group in the community wants to explore using stablecoins as a hedge—sort of like a sovereign wealth strategy—to mitigate ADA’s price volatility. They propose depositing some Treasury funds into stablecoins, possibly earning yields. It’s not Intersect’s official idea; it’s an independent group’s proposal. Ultimately, the DReps will decide on it.

DReps' Role in the Budget Process

Why Is The Budget Process Pivoting Toward DReps?

The Constitution grants DReps the authority to approve the Net Change Limit, budgets and treasury withdrawals. Intersect is not named in the Constitution, so its decision making authority is limited to what DReps may delegate to it.

What Is Delegated Authority, And How Do Committees Receive It?

Related to the budget process, delegated authority is when DReps vote to approve another group to take on part of their constitutional mandate. For example, DReps can vote to allow a committee to self-manage aspects of the budget—such as selecting contractors, distributing stipends, or prioritizing projects. This approach balances efficiency (committees can move fast) with accountability (DReps must formally approve the delegation).

How Will Proposals Be Evaluated Without Overwhelming DReps?

Intersect and committee members plan to roll out improved tooling for community and DReps proposal reviews, including in Gov.Tools. Some DReps may still choose to rely on committees or trusted reviewers. Additionally, big-ticket items might require deeper scrutiny while smaller requests could be bundled or flagged for simpler review.

Intersect's Role in the Budget Process

What’s Intersect’s Main Role In This Process?

Intersect is a facilitator for the budget process and an administrator for treasury funds. Decision making lies with the DReps unless they delegate authority to Intersect to take on additional budget responsibilities. Along these lines, Intersect consolidates proposals, offers optional auditing and administrative help, and may propose “gap” items if no community proposals address critical roadmap components. Intersect is not the final decision-maker. DReps, representing the community, ultimately vote on which proposals proceed.

Will Intersect Compete With Community Proposals?

If there’s a gap—like a necessary item in the roadmap isn’t being proposed—Intersect will propose it to fill that gap. But if there’s already someone else doing the work, we’re not trying to replicate or compete.

What Is Intersect’s Role In Auditing?

Intersect can facilitate audits—both financial (for treasury integrity) and technical (via the Technical Steering Committee or external experts). Projects are free to choose Intersect or another entity as their “administrator” in the budget process.

How Do The Auditing Fees Work With Intersect?

The cost for administration and auditing has to be included in your proposal. Contact Intersect to help set the audit fee.

Net Change Limit (NCL)

What Is The Net Change Limit, And Why Is It Important?

The Net Change Limit places an upper boundary on how much ADA can be withdrawn from the Treasury within a given time period. It’s a safeguard against treasury withdrawals that exceed what the community agrees to spend. DReps can vote to increase or decrease the limit later, though each on-chain change requires time (six epochs) and alignment.

How Is The Net Change Limit Calculated?

If a NCL for period x is 100, withdrawals during period x cannot exceed 100.

The active NCL sets the maximum amount of treasury withdrawals per period of time. The constitution states:

“Withdrawals from the Cardano Blockchain treasury made pursuant to an approved Cardano Blockchain ecosystem budget must not exceed the net change limit for the Cardano Treasury's balance per period of time” Cardano Constitution, Guardrail TREASURY-02a (x)."

What Is The Threshold To Pass The NCL?

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.

Does The Net Change Limit Equal The Annual Budget?

No. The net change limit simply sets a maximum possible expenditure, not the exact spend. Budgets and treasury withdrawals may be less than the NCL.

Can We Raise Or Lower The Net Change Limit Later?

Yes. If the DReps and the community realize they need a higher limit, anyone can propose a higher Net Change Limit and vote it through another on-chain action. Lowering it later will only apply to future withdrawals.

What Happens If Two Net Change Limits Are Approved?

This will require the Constitutional Committee's interpretation of the Constitution as to what determines the NCL in effect. Ex) the most recently approved vs the one with the higher approval. The Constitution states:

"Withdrawals from the Cardano Blockchain treasury that would cause the Cardano Blockchain treasury balance to violate the then applicable net change limit shall not be permitted."

and

"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"

How Was The Net Change Limit Of 350 Million Ada Determined And Is It The Right Number?

The figure of ~350 million ADA reflects recent one-year inflows, so spending in 2025 does not outpace the treasury’s replenishment rate. It is sized to ensure vital projects (like ongoing node upgrades, governance improvements, and community initiatives) receive adequate funding without draining the treasury.

Ultimately, DReps will vote on whether 350 million ADA is an appropriate cap.

Why Not Use A Percentage Of The Treasury Balance Rather Than A Fixed Ada Amount?

A percentage-based approach was considered. For this first cycle, the Budget Committee chose a fixed amount (350 million ADA) because it is straightforward and transparent. As Cardano’s governance evolves, a percentage system may be revisited and potentially replace the fixed cap.

How Do Potential Changes To The Protocol Tax Rate Affect The Net Change Limit?

If the tax rate (currently ~20%) changes—e.g., to 10%—the treasury would accrue ADA slower. That might merit adjusting the net change limit to prevent drawing down principal.

Proposal Submission

Where Do I Submit My Proposal For Treasury Funds?

Anybody can submit a proposal: https://intersectmbo.org/cardano-budget-submission

More information about how to submit is here: https://docs.intersectmbo.org/cardano/cardano-budget-submission/how-to-complete-the-intersect-proposal-submission-form

Is There A Deadline For Final Proposal Submission?

Proposals submitted by March 31 are consolidated and made available for DRep review in Gov.Tools, which could help your proposal gain attention earlier. April 24th is the deadline for proposals to be considered for the 2025 budget. Any proposal submitted after April 24 can still be considered for future budgets.

Does Each Proposal Require Its Own 100,000 Ada On-Chain Deposit?

No. Submitting via the form on the Intersect website does not require any deposit. When proposals reach consensus and are bundled together, only one 100,000 ADA deposit is required to submit the budget which will contain multiple proposals. Once proposals are consolidated into a single “budget bundle,” Intersect (on behalf of the community) will handle the on-chain deposit.

What If My Proposal Doesn’t Fit Any Current Committees Or Buckets?

Intersect opened a form to gather all proposals to receive treasury funding. DReps can review and include any proposal that they see fit.

What Happens Next After Proposals Are Submitted?

Proposal Submission: Fill out the Intersect form; if submitted by March 31, the proposal appears in the first public release in Gov.Tools.

Community Review: During April, the proposals undergo comment, AMA sessions, focus groups, and iterative feedback.
Reconciliation Events: Likely in late April or early May (venue and dates TBA), offering deeper collaborative review and final adjustments.
Consolidation & Single Deposit: Proposals that gain strong consensus bundle together in a budget proposal, with one 100,000 ADA deposit covering the package.
On-Chain Vote: DReps give final approval or rejection.
Funding & Audits: Approved proposals require one more on-chain vote for the treasury withdrawals and will be subject to audits and oversight.

The process is iterative. Even after a core set of proposals is funded, the Cardano community can introduce and vote on further proposals in subsequent cycles.

I Run A For-Profit (Or Partially Open-Source) Project—Can I Still Apply For Treasury Funding?

Ultimately, DReps decide based on whether the benefit to Cardano justifies treasury resources—e.g., higher on-chain activity, new partnerships, open-source components, or community growth. Additional accelerators (e.g., Catalyst, Venture Hub) exist for teams wanting more structured entrepreneurial support.

What About Intersect’s Own Budget Request?

Intersect’s operating budget—around USD 10 million—is a proposal. DReps still have to vote on it. Intersect’s request covers committee stipends, administrative costs, and general operational expenses.

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