Detalhes da Proposta
2026-27 Net Change Limit
dreptest
Resumo
The Cardano Constitution requires the establishment of a Net Change Limit (NCL), which defines the maximum amount of lovelace that can be withdrawn from the treasury during an outlined period of time. This governance action serves as an opportunity for all governance stakeholders to formally express their positions regarding the proposed Net Change Limit, ensuring transparency, accountability, and alignment across the ecosystem.
The 2026-27 Net Change Limit will begin at the start of Epoch 613 (13 February 2026) and continue for 101 epochs, finishing at the conclusion of Epoch 714 (3 July 2027). The Net Change Limit will be 350,000,000,000,000 lovelace (350M ada). Unless superseded by a new NCL, this is the maximum amount that can be withdrawn from the treasury during this specific period and shall not be exceeded.
The Net Change Limit will be used when reviewing treasury withdrawal actions to ensure constitutionality as required by Article IV of the Cardano Constitution and the Treasury Withdrawal Guardrails outlined in Appendix I.
Motivação
Prior to the submission of any treasury withdrawal, a Net Change Limit must be formally agreed upon by delegated representatives (Article IV Section 3 of the Constitution). Failure to establish a Net Change Limit shall render any such treasury withdrawal action unconstitutional and, therefore, inapplicable.
The 2026-27 Net Change Limit will be effective for the period specified in this action.
Justificativa
Period and Amount The 2026-27 Net Change Limit (NCL) shall begin in Epoch 613 (13 February 2026) and progress for 101 epochs, concluding at the end of Epoch 714 (3 July 2027). The Net Change Limit shall be set at 350,000,000,000,000 lovelace (350 million ada). Calculation and Methodology This limit represents approximately 120% of the Net Income available from the inflows of 2025. Net Income for 2025 is calculated by summing the inflows placed in the treasury from the first to the final epoch of the calendar year (Epochs 532 through 604). Treasury inflows for 2025 are projected to be approximately 290 million ada. The decision to increase the limit to 120% (bringing the total to 350 million ada) was determined by incorporating the 2025 DeFi liquidity budget (Gov Action ID: gov_action1u4jrcvlkppjzuv5j9z5ksacwtvv77h6glu0knpcjut8gvjjfu0cqqt3alsy). Although DReps approved this 50 million ada allocation, the proposers did not request the funding. To respect the will of the DReps and their demonstrated willingness to fund this initiative, we deemed it responsible to add this previously approved amount to our 18-month NCL. Consequently, this projection reflects both the inclusion of the approved, unfunded budget from 2025 and an evaluation of the anticipated development load for 2026. Application and Compliance This limit shall be applied in assessing treasury withdrawal actions to ensure compliance with Article IV of the Cardano Constitution and the Treasury Withdrawal Guardrails specified in Appendix I. Voting and Thresholds A vote in favor of this proposal indicates agreement with the proposed Net Change Limit, allowing for the submission of treasury withdrawal governance actions. However, the maximum amount that can be withdrawn from the treasury during this specific period shall not exceed the total sum outlined herein. Per the Cardano Constitution, the approval of a Net Change Limit requires a threshold of greater than 50% of the active voting DRep stake. Therefore, this Net Change Limit will be considered passed if, at the time the governance action expires, the DRep YES votes represent more than 50% of the active voting stake. While not obligated, Constitutional Committee members are encouraged to provide their opinion via a rationale on this Net Change Limit.
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Comentários (2)
Before debating the amount, the NCL period itself should be unified. Overlapping NCLs reduce governance clarity and predictability.
I would advise DReps to listen to the Intersect CBC twitter space:
https://x.com/IntersectCBC/status/2008917167471829196?s=20
Pretty good discussion there. Essentially, different points of view - but I do agree that the NCL is a bit of performative theater that the constitution mandates. It does introduce a bit of additional red tape into our entire governance model.
I may have my opinions on it and treasury management and withdrawals, but now one year into governance - I no longer have a fighting dog in the NCL fight itself. As DReps will override any limit - when and if they decide they want to override it. It's a signalling theater.
The real discussions will be about making solid, smart, valuable allocations from the Treasury in the months ahead and rejecting those that are not good enough. There might be few good Treasury allocation opportunities, or more than we expect. We can't see it from where we are standing.
My personal preference would have been an NCL that represents approximately 99% of the Net Income available from the inflows during the preceding period of the same length. Not the 120% that this NCL action proposes.
But, I will not block an NCL, as it is just a line in the sand in the middle of a very windy desert thta faces winds from many sides.
Still, pointing out that it is very very very unlikely that I will vote for 350 million ADA in disbursements. I was learning on the job in 2025. I will probably be looking at being more restrictive in 2026 than what I was in 2025 and certainly more restrictive in spending than the majority of DReps by voting power was in the previous year.
As a DRep I will not be guided by this NCL as a target even if it is approved. It is essentially meaningless in a few months, when the workd changes.
I will seek to approve only proposals that have a chance of bringing value to Cardano long-term and I will try to identify them to the best of my abilities.
So, my intent is to have an NCL that indicates slightly less than 100% of the Net Income available - if the intent is to signal 120% I will actively abstain.
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