The NCL, which represents the maximum amount of ada that may be withdrawn from the Cardano Treasury in a given period, should be set at 300 million ADA for the period from the start of epoch 604 to the end of epoch 676.

The Cardano Constitution, at Article IV, Section 3, requires that before withdrawal of Treasury funds, the community must have established a NCL.

The NCL for 2025 was set at 350 million ADA based on the actual inflows to the Treasury in 2024. By the same logic, the NCL for 2026 should be set at 300 million ADA based on the actual inflows to the Treasury in 2025.

We propose that the Net Change Limit be set based on the previous year’s total treasury inflows, creating a direct incentive for projects to enhance utility on the blockchain. This approach ensures that funded initiatives drive greater value across the broader ecosystem. We aim to support sustainable growth and long-term advancements within the Cardano network by fostering innovation, efficiency, and real-world applicability.

This limit shall be applied in assessing budget actions and treasury withdrawal actions to ensure compliance with Article IV of the Cardano Constitution and the Treasury Withdrawal Guardrails specified in Appendix I.

A vote in favor of this proposal shall indicate agreement with the proposed Net Change Limit, allowing for the submission of budget info actions and treasury withdrawal governance actions. The maximum amount that can be withdrawn from the treasury during this specific period shall not exceed the total sum outlined herein.