Treasury governance within the Cardano ecosystem is in a poor state. First, there is a treasury funding impasse. Second, while being pivotal for Cardano's stability and growth, treasury governance is only indirectly addressed and barely supported by the existing governance system. This governance info action sketches fundamental ideas for reforming treasury governance and introduces them into public discussion. The goal is to bring positive change for improving the treasury governance process and to outline guardrails for strategic direction. An implementation will require further refinements and amendments to the current process as well as the constitution. All members of the Cardano ecosystem are encouraged to collaborate in reforming treasury governance into a productive process that enables stability and growth.

This governance action requests a **12-month productive treasury deployment of 7,500,000 ADA** into Strike Finance liquidity infrastructure. This is **not grant funding**. Treasury-owned capital would be deployed to deepen Cardano-native perpetual futures liquidity, increase on-chain trading activity, and generate yield for the Cardano Treasury. Strike has processed **over 1,000,000,000 USD** in cumulative volume, facilitated **800,000+ transactions**, generated **over 14,000,000 ADA** for liquidity providers, distributed **over 1,100,000 USD** back to the Cardano community through fee-funded staking rewards, and represented **over 50% of Cardano trading activity** during the past six months. | Allocation | Amount | Purpose | | ----------------------- | ------------: | ------------------------------------------------------- | | V1 ADA-native liquidity | 3,000,000 ADA | Support existing ADA-denominated liquidity | | V2 stablecoin liquidity | 4,500,000 ADA | Support scalable execution depth and stablecoin markets | For modeling, V2 assumes **ADA = 0.25 USD**, making **4,500,000 ADA** approximately **1,125,000 USD** of stablecoin liquidity. Actual stablecoin notional will depend on the conversion price at deployment and will be transparently reported. Under conservative modeled assumptions, the full deployment is expected to generate approximately **1,350,000 ADA-equivalent** in annual yield. Assuming no ADA price change, this would increase the treasury-owned position from **7,500,000 ADA** to approximately **8,850,000 ADA-equivalent** over 12 months. These are modeled estimates, not guaranteed returns. Market direction, stablecoin pricing, open interest, liquidity utilization, and vault PnL may affect realized results. Custody will be handled through an independent multisig with: | Keyholder | Affiliation | | --------- | ----------- | | James | Moneta | | Rami | Snek | | Phil | Surf | Strike Finance will not have unilateral custody or control of treasury assets. Realized yield from the first six months will be returned to the Cardano Treasury at month 6. At month 12, **100% of treasury-owned deployed assets, including remaining principal and realized yield, will be returned to the Cardano Treasury**. Any further treasury participation would require a new governance proposal.

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