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Prep for Reconciliation

Home page with resources to prepare for budget reconciliation

Workshop Sign-up: https://lu.ma/cardanobudgetprocess

Cardano's 2025 Budget Reconciliation will be done through two virtual, multi-day workshops.

Reconciliation #1: April 26-28, 2025

Reconciliation #2: May 3-4, 2025

Reconciliation workshop flow

Prepare for Reconciliation

Vendors who selected Intersect as their administrator

  • Have all proposal edits done by April 24th at 5pm UTC. This is when the proposals will be exported for reconciliation workshop purposes and used to create soft proposal prioritization.

  • Attend the workshops during the category relevant to your proposal(s) and finalization, if possible.

    • April 26th: Marketing & Innovation, Governance Support

    • April 27th: Core, Research, No Category

    • April 28th: Finalization Across Categories

    • May 3: All proposal categories

    • May 4: Spillover proposal categories & Finalization across categories

  • Monitor your emails from [email protected]. Intersect will notify you of any changes debated by DReps. Responses should be shared back to this email, and will be summarized for the DReps in the next workshop day. If you do not respond by the time the workshop ends, DReps will decide based on the proposal as-is. Any proposals that do not get included in the first budget following April 28th will be carried into May 3-4.

DReps

  • Add final comments and temp check in Gov.Tools before April 24 at 5pm UTC.

    • The proposals, temp checks and comments will be exported at 5pm UTC to create soft proposal prioritization based on the aggregate proposal feedback. This prioritization will be the starting point for the reconciliation workshops.

  • Pre-workshop homework:

    • Read all proposals, or at least all those of interest to you, in Gov.Tools. TIME TO READ PROPOSALS WILL NOT BE PROVIDED DURING THE WORKSHOP.

    • Review the summary provided by Intersect

    • Identify any discussion points that you want to surface in the reconciliation workshop. Discussion points must be seconded by another DRep to be discussed. Discussion points should be focused:

      • Discussion can be around whether a proposal should/should not be in the info action, comparison between proposals, and/or specific changes requested for a proposal.

  • Attend the reconciliation workshops. THIS ALLOWS YOU TO ADD DISCUSSION POINTS AND DISCUSS WHICH PROPOSALS SHOULD GO INTO THE BUDGET INFO ACTION.

  • If you cannot attend reconciliation workshops, participate in polls asynchronously.

    • DReps who cannot attend are free to ask another DRep to bring their discussion point to the floor, and will still require a second from another DRep.

    • Workshop recordings will be available here.

    • Participate in polls generated throughout the reconciliation workshop: 2025budget.intersectmbo.org

      • Polls will remain open for all DReps until ~5hrs prior to the final workshop day of each cycle (April 28 and May 4). Polls on the final workshop day (April 28 and May 4) will close on 12:59 UTC that day.

        • Exact Deadline for each poll forthcoming

Intersect Committees

  • Secretaries must submit final comments on behalf of their committee in Gov.Tools before April 24 at 5pm UTC. This is when the proposals will be exported for reconciliation workshop purposes and used to create soft proposal prioritization.

  • Attend the reconciliation workshops to add your expert perspectives

  • If your committee submitted a proposal, see "Expectations of Vendors" above

Cardano Budget Committee Recommendation: Threshold to include a proposal in the budget info action.

The Cardano Budget Committee decided on April 21st to provide a recommendation to DReps regarding the polling threshold used to determine which proposals are included in a Budget Info Action from Intersect.

A separate tool is being developed for budget reconciliation polling. Gov.Tool polls will be used to help prioritize proposals, but will not be used to directly determine which proposals go into a budget info action. The poll to determine which proposals will be included in a budget will take place during reconciliation workshops on April 26-28 and May 3-4. The polling tool will be available asynchronously. Polls during the first reconciliation cycle (April 26-28) will be used to generate a budget info action. Any proposals not included in this budget can be carried forward to the May 3-4 reconciliation cycle for further consideration.

Recommendation from the CBC. Proposals to receive treasury funding will be included in Intersect’s budget info action if:

Yes / (Yes + No) > 50% by participating DRep stake

Abstention and non-participating stake do not impact the calculation.

This recommendation is aligned with the >50% threshold required for a budget info action to pass. It balances the need to build off-chain consensus on the 2025 budget, thereby improving the likelihood that it will pass, while not removing any decision-making authority from the DReps. The CBC felt that the threshold can safely be set to >50% of the participating stake because two official decisions must still follow - an on-chain vote on the budget and on-chain votes for each treasury withdrawal to distribute any of the funds earmarked in the budget. Furthermore, Treasury withdrawals can only pass with a > 67% approval of DReps.

In summary, this threshold will provide a strong indicator of what the community wants to see in a budget while not unnecessarily stalling progress or causing further voting fatigue in DReps.

What this means for proposals:

During each reconciliation cycle, proposals will be reviewed based on prioritization that reflects community sentiment gathered in Gov.Tools up until April 24th. This summary and prioritization will be presented to DReps during the reconciliation process. DReps will discuss prioritized proposals in each category and be asked to submit a poll with their opinion. This poll will be in a new Hydra-based voting tool. If your proposal passes the above-recommended threshold and specifies Intersect as the administrator, Intersect will include it in their budget information action.

Two reconciliation cycles are planned for 2025. Suppose your proposal doesn’t pass the threshold in the first reconciliation cycle. In that case, this does not mean your proposal is unsuitable for the budget, or that it cannot be funded through Intersect’s budget process. If you believe your proposal is ideal for Cardano Treasury funding, DReps are likely to review it in the second reconciliation cycle. Alternatively, the DReps may determine that the proposal should be routed through a more suitable funding mechanism. One familiar route could be Catalyst (pending DRep agreement to fund Catalyst in the 2025 budget) for small innovation proposals. There are also several other proposals for treasury funding to create a secondary funding mechanism, such as the Builder DAO, RareEvo events, and Future Governance Workstreams proposals. As with Catalyst, these proposals are pending DRep approval for funding; however, any successful proposals will provide additional avenues for funding.

Outside of Intersect’s budget process, Cardano’s permissionless network affords every ada holder the opportunity to propose funding requests to DReps on-chain at any time (as long as an approved Net-Change-Limit is in effect).

Join us for reconciliation workshops to hear final questions and feedback on your proposals from DReps. Register here: https://lu.ma/cardanobudgetprocess

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