Proposals
Participate in discussions and decision-making processes guided by community governance.
Use Treasury To Boost Liquidity For Stablecoin
Cardano Foundation has confirmed that there is not enough interest from exchanges to host Cardano fungible tokens. SNEK has made it but others are struggling with volume and liquidity.
This proposal would set 1% of the treasury to a stablecoin to provide liquidity, stability and show the community is taking the need for a stable coin on the network seriously, improve volumes and a base on which to build bigger projects.
The community would vote on which coin ie DJED or USDC.
There is currently 1.66BN ADA in the treasury. 1% would be 16,600,000 ADA.
The community could go futher and vote for a recurring amount to be invested in stable coin liquidity on a regular basis, setting aside 1% of fees every epoch.
Unequal Power
Decentralisation is about distributing power as much as possible. With the current voting power given to DReps by delegators there is a danger that the DReps that wield the most ADA wield the most power.
While this is logical at first glance this will result in an oligopoly of a few select DReps.
In short I suggest a limit to the number of ADA that can be delegated to an individual DRep.
Salary & Expense Transparency at the Cardano Foundation
This proposal seeks to mandate the Cardano Foundation to publicly disclose all salaries and itemized expenses, aligning with the transparency standards of U.S. non-profits. By implementing clear financial reporting, the community can ensure responsible fund allocation, promote accountability, and strengthen trust in the Foundation’s operations.
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Hard-Cap The Treasury & Make ADA Deflationary
We should put a hard cap on the treasury and implement a burning of all fees collected any time the cap is reached. For the sake of discussion, I propose a hard cap of 2.25 Billion ADA (5% of the max total supply).
Burning ADA does not destroy value, just consolidates it. This is a fair and frictionless way to distribute proportional value to all other token holders across the ecosystem by leveraging the fundamental economic law of Supply and Demand.
This change would be easy to implement on-chain and is a low-risk way to add significant long-term deflationary pressure to ADA, improving its fundamentals as a digital asset.
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Proposed changes to Cardano Foundation Delegation Strategy
In this document, we propose small but impactful changes to the current Delegation Strategy adopted in October 2023 by Cardano Foundation (CF). The aim of this proposal is to gauge Community sentiment around what we have considered to be a set of issues since the adoption of the new Delegation Strategy (October 2023).
Specifically, we address four issues with CF's Delegation Strategy, which were all introduced without Community consultation and implemented unilaterally in October 2023:
i) CF delegation is currently made up of few, large “packages”;
ii) CF delegation is currently awarded with no cap on existing stake in recipient Pool;
iii) CF delegation is currently awarded as a result of a non-competitive process, with decisions made outside of public scrutiny and sometimes to pools who didn’t want delegation or didn’t intend to apply for it;
iv) CF delegation is currently awarded to Stake Pool Operators who received it the previous year.
By voting on this proposal, voters can express their opinion on the following question:
Should CF Delegation Strategy be amended to include the changes proposed herein?
The following are our proposed changes:
i) CF delegation amount should be lowered to 10M ADA from the current 20M, which will also increase the number of Pools that receive the delegation;
ii) CF delegation should be awarded to Pools which have maximum 10M ADA delegated to them;
iii) CF delegation should be an inclusive, competitive process, for which applicants should apply at every round;
iv) CF delegation should include a 12-month cooling off period.
In this proposal we will analyse each of the perceived weaknesses and provide motivation in the form of supporting evidence provided by subject-matter experts, as well as reference public discussions had with CF representatives in appropriate fora. Further, we shall provide a rationale for change requests, explaining why, in our view, proposed changes would strengthen the impact of CF delegation for the Stake Pool Operator Community.
Blockchain education and onboarding committee / treasury
Creation of a treasury / committee for basic and advanced blockchain education and standardized bundled source material that can be co created by the community.
Should K be increased?
The K parameter was created to limit the total number of ADA staked to one pool. The K parameter determines the saturation of stakepools. To calculate the saturation of stakepools you can take the total number of ADA and divide it by K. K is currently 500, and pool saturation is currently 74,551,771.86 ADA. Pool saturation will increase slightly each epoch as more ADA is minted each epoch from staking rewards.
K also has a large effect on a0. a0 is another Cardano protocol parameter that determines ADA staking rewards per epoch. a0 is currently set at .3. If a stakepool operator pledges the enough ADA to saturate their pool they earn 30% more ADA rewards per epoch. If you pledge half of the pools saturation then they earn 15% more ADA rewards. Smaller pledges have a higher impact on staking rewards with a k parameter that's higher.
Mandating 1% of the Annual Cardano Budget for a Universal Basic Income Program
This proposal seeks to introduce a constitutional clause requiring that 1% of Cardano's annual Treasury funds be allocated to a Universal Basic Income (UBI) program for every validated individual registered on the Cardano network. Over time, this initiative will significantly reshape Cardano's governance, positively impacting the lives of everyday people, promoting the adoption of ADA as a reserve currency, and enabling new consensus mechanisms. The ultimate goal is to align with Cardano's vision of empowering individuals with financial and identity rights.
Enhancing Cardano Governance: Addressing the 100k ADA Requirement for Proposals
This proposal addresses the exclusion of ADA holders from submitting on-chain governance proposals due to the 100k ADA staking requirement. This exclusion, based on economic status, is contrary to the principles outlined in the Cardano draft constitution, particularly Article 2, Section 2, and Article 3, Section 6. These articles guarantee ADA holders the right to participate in governance processes and ensure transparency and protection from undue influence.
While the 100k ADA staking requirement is currently necessary to prevent spam and DDOS attacks, it inadvertently excludes many ADA holders, undermining the inclusivity of the Cardano ecosystem. This proposal acknowledges the temporary necessity of this requirement but emphasizes the need for more inclusive methodologies in the future.
The proposed solutions include short-term measures, such as centralized KYC, crowdfunding within the GovTool DApp, and DRep-based submission methods, as well as the long-term implementation of DIDs (decentralized identifiers) to enable trustless KYC. These solutions aim to ensure broader participation in governance without compromising the blockchain's security and integrity, ultimately aligning the governance process with the Cardano ethos of inclusivity.
Establishing a Governance-Enforced Hard Cap of 45 Billion ADA Tokens
This proposal aims to set a formal hard cap of 45 billion ADA tokens on the Cardano blockchain, ensuring no further issuance of tokens beyond this limit. This will protect ADA’s scarcity, preserve its long-term value, and align with the decentralized governance model of Cardano. By enshrining the hard cap through governance, the proposal guarantees economic stability for all stakeholders and promotes the sustainability of the network.
Budget Guardrail: Core Budget Proposals Require 2 Contributors Each
For any Core Budget Proposal designed to improve core aspects of the Cardano Blockchain we must hire at least 2 companies to work cooperatively on each proposal. Any core bucket budget proposal must contain more than one entity with developers who will have full access to repos used to develop the project subject.
Allow treasury withdrawals only when the price of 1 ADA is at or above 1 USD
Maximize the efficiency of treasury funds and allow withdrawals only when the ADA price is at or above 1 USD.
Name the next hard fork "Sadosky Hard Fork"
The Chang+1 hard fork should be called the Sadosky Hard Fork after Argentine mathematician Manuel Sadosky.
Boosting DJED Stability and Adoption with Treasury Support and Fee Discounts
This proposal aims to enhance DJED's stability and increase its adoption within the Cardano ecosystem by allocating 2% of the 20% tax collected every epoch to the Cardano treasury for minting Shen coins. This allocation will directly support DJED's collateralization mechanism, ensuring that Shen reserves remain strong enough to maintain DJED's stability even during periods of market volatility. Additionally, 1% of the tax will be allocated towards offering transaction fee discounts when payments are made in DJED. This incentive is designed to drive DJED adoption by making it a more attractive option for everyday transactions.
To ensure sustainability, the discount system will implement mechanisms such as a dynamic discount rate based on available funds, transaction caps to limit the total amount of discounts provided in a given period, and a priority-based system to ensure fair distribution of discounts. If the allocated funds run low, an automatic treasury replenishment mechanism could be triggered, either temporarily diverting additional funds or adjusting the system's parameters. These changes will collectively strengthen DJED's role as a reliable, decentralized stablecoin while promoting its widespread use within the Cardano ecosystem.
The implementation of this proposal will require coordinated efforts across development, governance, infrastructure updates, security audits, and community engagement. It will involve developing new smart contracts for automatic Shen minting and transaction fee discounts, adjusting Cardano's ledger and node infrastructure, conducting rigorous security audits, and testing the new features on the testnet. Collaboration with DJED issuers (COTI), the Cardano treasury team, and the broader community will be essential to ensure a successful rollout. Education campaigns and detailed documentation will also be provided to help the community understand and interact with the new systems.
Outreach and Education Budget Guardrails
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Any proposal for budget allocations from this bucket must be tied to clearly defined on chain metrics that include on-chain wallet creation, on-chain DID creation, and on-chain transaction volume.
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Each proposal will be limited in size and accomplished in stages that start small and grow to a point where a critical mass can be achieved and the community formed becomes self sustaining. Once a community achieves critical mass it will be expected to sustain itself without further budget support. This guardrail will be elaborated on through this discussion.
Use the Cardano Treasury to buy the old WWE Headquarters
WWE headquarters, aka Titan Towers, is located in Stamford, Connecticut, and is one of the most iconic buildings in the entirety of New England. This location has recently come up for sale, and should be purchased by the Cardano community in order to establish our official Headquarters. Establishing this location as Cardano HQ will allow us to put a giant Cardano logo on the top, and everyone driving to and from New York City on i95 will be able to see a sick blue-colored hypocycloid directly from their car. As of 2022, about 120,000 vehicles were traveling into, out of and through Stamford via I-95 per day, and this purchase will not only give us the sickest bat-cave-like HQ in web 3, but also double as the best marketing stunt in the history of advertising. All ADA holders will be able to sign into Cardano HQ by scanning their wallet at the door, and holders of at least 69,420 ADA will be given their own cubicle. What's more, they can accommodate a helicopter on the roof, and Uncle Charlie can totally park his Blackhawk there if he's ever in town.
Implement a Constitutional Bar to the Treasury Burning Ada
Constitutionally limit the treasury against actions that burn Ada governance coins.
Budget Constitutional Guardrail: 1 item funded per proposal with a clear goal
Any budget proposal for a budget expenditure from any of the 5 budget categories must have:
a. 1 clearly funded subject b. It must have a clear and defined completion goal or termination point.
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