Cardano’s budget process is new and evolving, and we recognize that the first year will not be perfect. There have been challenges; the process has sometimes been more complex than necessary. Based on community feedback, we are making, and will continue to make, necessary adjustments, including:

• Gaining consensus on Cardano product funding priorities via the product roadmap
• Intersect Committees supporting the Cardano community and DReps with their perspectives on funding priorities in addition to the product roadmap
• An open call for proposals from anyone seeking treasury funding for projects or programs
• The Cardano community via DReps making the final determination of which proposals to include in the budget(s)

These changes prioritize decision making by the community to ensure that critical funding reaches the right initiatives at the right time.

The community – through DReps and the Constitutional Committee – remains the ultimate decision-maker on how and when Treasury funds are allocated. Intersect’s role is to support, advise, and provide administrative oversight, ensuring the process is structured, fair, and aligned with community priorities. This recalibrated approach aims to make participation more accessible, removing unnecessary complexity and barriers to participation while maintaining accountability and strategic focus.

We deeply appreciate the 100+ members who have actively contributed to shaping this process. We continue to learn, adapt, and commit to getting this right. We will continue to listen, refine, and improve as we move forward, ensuring that the community remains at the heart of Cardano’s budget and governance process.

Community feedback & the need to adapt

We received substantial community feedback as we began socializing the draft budget proposals, including greater transparency around Cardano Development Holdings (CDH) and procurement processes. Many welcomed the focus on core infrastructure, open-source initiatives, and research proposals, while others provided constructive criticism highlighting areas for improvement.

This input has been instrumental in shaping our approach and has led to key refinements in the process. Specifically, we recognize the need to:

• Strengthen respect for DRep authority and on-chain governance principles
• Ensure a more direct community role in budget approvals.
• Streamline the process to make participation more accessible and effective.
• Continue building on the work members have contributed to the draft budget proposals
• Leverage Cardano’s technology, including smart contracts and distributed oversight, to set a strong precedent for transparent governance

Recognizing that governance is ongoing, we will remain agile and responsive to further community feedback. 

The revised approach – closer adherence to the Cardano Constitution

Changes to how providers are selected
Ecosystem builders and the broader community can now submit proposals directly alongside committee budgets being submitted as block budgets. This allows vendors and builders to identify specific parts of the roadmap or other ecosystem needs they wish to develop or support and propose a targeted request for DRep consideration within the budget proposal(s).

“The Cardano Community is expected to periodically propose one or more budgets for the ongoing operation, maintenance, and future development of the Cardano Blockchain ecosystem and for covering other costs related to the implementation, administration, and maintenance of the decentralized, on-chain governance processes provided for in this Constitution.” 

–Article 4, section 1 of the Cardano Constitution.

Fund management
The revised process also includes changes to how approved funding with Intersect listed as the administrator will be disbursed. Intersect is sponsoring the writing of a new smart contract with multiple oversight signers to provide the necessary checks and balances to funding disbursements and provide greater stability to vendors. More importantly, it provides far greater transparency with fund disbursements, with the community able to self-audit. 

SundaeLabs and Xerberus are developing the smart contract. The multi-sig smart contract will include Intersect, auditors, and established organizations to be selected. The smart contract will serve as an oversight control mechanism, with the ability to pause payments to vendors for just cause, such as contract breaches. 

“Development of Cardano Blockchain ecosystem budgets and the administration of such budgets shall utilize, to the extent possible and beneficial, smart contracts and other blockchain based tools to facilitate decision-making and ensure transparency. ” 

– Article 4, section 2 of the Cardano Constitution

Oversight and administrator role
As an administrator and oversight body, Intersect, through its members and committees, will provide guidance and recommendations in an advisory capacity on approved vendors and contracts and support the ongoing development of roadmaps (and supporting initiatives). This also includes reporting on milestones, financial updates, and arbitration (as needed) on a timely basis to the community and more directly to the smart contract holders.

“Cardano Blockchain budgets shall specify a process for overseeing use of funds from Cardano Blockchain treasury withdrawals including designating one or more administrators who shall be responsible for such oversight.” 

– Article 4, section 2 of the Cardano Constitution.

The Net-Change-Limit
A critical factor in budget discussions is the Net Change Limit (NCL)—a constitutional mechanism determining how much ada can be withdrawn from the Treasury within a set period. The community is currently evaluating two possible approaches: a percentage-based limit or a fixed numeric cap. The outcome of this decision will shape how Treasury resources are allocated, making open discussion and community alignment essential. The Intersect Budget Committee will continue facilitating this process, ensuring all perspectives are considered. The NCL proposal is expected to be submitted on-chain towards the end of March.

The Treasury is designed to support Cardano’s ongoing growth and development. Any spending plan should account for treasury increase projections, balancing investment in growth-oriented development with long-term financial sustainability. 

Reaching commonality on Cardano’s technical & product roadmap

A key step in the budget process is building consensus and aligning development priorities before budgets are proposed on-chain. Recognizing the power of Info Actions to gauge consensus more formally, the Cardano community is called to vote on the proposed 2025+ roadmap, developed by Intersect’s Product Committee, with input from technical stakeholders.

This roadmap outlines development priorities, technological advancements, and strategic goals identified by the Product Committee and key stakeholders as critical to Cardano’s future. By voting, DReps will shape the ecosystem’s trajectory while directly informing current and future budget discussions. You can view the roadmap in English, Japanese, and Spanish. You can submit suggestions via github or gitbook (first you need to register as an editor). DReps can vote via Cardano GovTool now.

As part of the initial budget process, committees developed block budgets. These represent additional funding priorities that are useful guides for the community.

What this means for you

If you’re an ada owner and DRep:

• The Cardano community, via DReps, directly decides which projects and vendors are funded.
• In April, the Cardano community can review submitted and committee-proposed proposals, and signal proposal preferences. In parallel, the Net-Change-Limit will require approval.
• Once DReps refines a shortlist of proposals, they will be submitted in a Budget Info Action for on-chain approval.
• You can rely on Intersect committees for subject matter insights such as technical feasibility, duplication, or gaps – but the final decisions rest with you.

More to come on what tooling will be available for the Cardano community to clearly signal what proposals should be considered in a Budget Info Action!

If you’re a member of Intersect and serving in a committee or working group:

• You can provide feedback and commentary on vendor proposals that align to your previous budget buckets, highlighting scope where proposals are missing
• You can help ensure that DReps have the necessary context to make informed decisions.
• You may also propose funding of specific projects or program proposals, such as those that you or the Committee itself would like to serve as the project’s vendor or program manager (i.e., programs that are designed to fund other ecosystem priorities or projects)
• Your engagement helps maintain transparency and accountability in the process.

If you’re a vendor or ecosystem builder:

• You may now submit proposals directly rather than relying solely on committee-prepared block budgets
• Submissions open in early March. The Cardano community and DReps, supported by the appropriate Intersect committees, will review all funding proposals
• If selected and using Intersect as your administrator, funding will be managed via a multi-signature smart contract, ensuring transparency and stability

Next steps & timeline

• Early March: Proposal submission window opens for community members, vendors, and ecosystem builders. Apply today.
• April: Submissions are organized, made public, and reviewed by the community and DReps

• March-April: In parallel to vendor proposals being available, the Net-Change-Limit will be submitted on-chain with greater clarity as to how much funding the ecosystem has requested via proposal, helping to establish a starting point for Cardano’s first NCL. 

• April-May: DReps signal preferred vendors; a Budget Info Action is finalized for on-chain approval. Budget workshops may be held to reconcile complex decision-making (which may be online-only or in-person depending on community feedback), focused on deciding on all critical funding.
• May-June: Following the reconciliation efforts, it’s anticipated that relevant governance actions will be raised and follow-up work will be organized if needed to make decisions on unresolved funding requests

Recalibrating and setting the right precedent

This approach is designed to balance urgency with openness, enabling critical funding today while committing to improvement and accessibility. Intersect and its members are here to serve and support the broader ecosystem. The process will also remain adaptive and responsive, adjusting dynamically based on community and DRep feedback to ensure it continues to meet the ecosystem’s needs.

We want to hear your early feedback on the changes 

These changes mark a shift in approach, but it’s equally important to remain agile and responsive to community feedback. Stay tuned to our X account for upcoming Spaces next week, covering both U.S. and Asian time zones.

There are also multiple Budget committee AMAs where we can expand further on the steps ahead and get your feedback on the changes

Additionally, the Product Committee is hosting a workshop on Thursday, March 14, at 16:00 UTC to discuss Cardano’s vision and product roadmap. RSVP here!

TLDR:

• Strategy setting: Align on the product roadmap and reference committee block budgets, debate the Net-Change-Limit  
• Proposals are open! Community and vendors can apply today via  a new proposal form.
• The Cardano community via DReps, makes all final funding decisions, with Intersect committees providing guidance on feasibility and alignment.

This new approach simplifies the process while reinforcing DRep authority, transparency, and community engagement. 

Let’s keep building the future of Cardano – together.