blake2b-256
We have determined that this treasury withdrawal governance action is constitutional.
The governance action with ID "gov_action1pv7g8d0x9f3kqw2gcfrmgl8aqy38jat05wx0wwcvdsvuuclss6xqqhpzemv" and title "Cardano dOSPO and OMF Program" is a Treasury Withdrawal, and is therefore subject to the following sections and guardrails in the Cardano Constitution. ARTICLE II, Section 6 of the Cardano Constitution states that governance actions must follow a standardized and legible format, including a URL hosting an immutable document and a corresponding hash, and must provide sufficient rationale including a title, abstract, justification, and supporting materials. This governance action includes a valid URL and hash, which matches the hash of the off-chain documentation referenced. The rationale also meets the minimum content specified in this section. ARTICLE II, Section 7 specifies that Treasury Withdrawal governance actions must include the following: 1\. Purpose, Delivery Period, Costs, and Refund Conditions This governance action specifies: - The purpose of the withdrawal as "This program establishes a community-governed, data-driven open source sustainment architecture. Funded through direct treasury withdrawal, operated by an independent entity, and overseen by two advisory councils" to deliver "Four programs" being a "Maintenance Fund", a "Maintainer Development program", a "CodeForUs bounty program" and an "Ecosystem Activation Reserve" - The period for delivery of the 4 programs as being carried out "over 36 months" - The relevant costs and expenses, with several budget breakdowns by work package and overall, under Section 4 - The circumstances under which funds may be refunded to the Cardano Treasury as "The 1,125,000 ADA portfolio reserve within WP2 is returned at program end if undeployed. The 130,000 ADA activation reserve within WP5 is also returned if undeployed. Unspent operational contingency is returned. Treasury repayment is a hard commitment. Every unspent funds will be returned or upon sunset mechanism activation." These elements fulfil the requirements of Article II, Section 7(1). 2\. Prior Treasury Funding Disclosure ARTICLE II, Section 7(2) requires disclosure of whether the prospective recipient has received ada from the Cardano Treasury within the last 24 months. This governance action states "Prior Cardano Ecosystem Funding - OSC Paid Open Source Model- This is built from the lessons learned of that program and this budget is intended to replace it in a true decentralized fashion. Intersect committees will be consulted throughout this process.". This fulfils the requirement of ARTICLE II, Section 7(2). 3\. Net Change Limit (NCL) ARTICLE II, Section 7(3) requires that Treasury Withdrawals must not exceed the Net Change Limit. The Net Change Limit in effect at the time of submission of this vote on-chain is the governance action with ID "gov_action1m3xx08yv788vfxqh6nfvrjtvmqpwezsy0ggaczctkyjmttc2wmxsq4jsr7q". - A. Current NCL Amount: 350000000 ada - B. Current NCL Time Period: Epoch 613 to Epoch 713 (Inclusive) - C. Total of Treasury Withdrawals within the Current NCL Time Period: 207255840 ada - D. Amount of this Treasury Withdrawal: 12000000 ada - E. "C" plus "D" = 219255840 ada - F. "A" minus "E" = 130744160 ada As the value of "F" is greater than or equal to zero, this governance action fulfils the NCL requirement. 4\. Audit Allocation and Oversight Metrics ARTICLE II, Section 7(4) states "Treasury Withdrawals actions shall require an allocation of ada as a part of such funding request to cover the cost of periodic independent audits and the implementation of oversight metrics as to the use of such ada." This governance action states that "Financial Audit — independent qualified auditor Mill Law Firm conducts quarterly financial reviews and annual program audits. All reports published publicly within 30 days." and provides budget allocated under Work Package 1, which fulfils the requirements of ARTICLE II, Section 7(4). 5\. Designated Administrators ARTICLE II, Section 7(5) requires that one or more administrators are designated to monitor fund usage and ensure deliverables are achieved. This governance action specifies two administrators over different periods, as "Months 1–6: Christian Taylor through Open Source Cowboy Consulting as Founding Coordinator. All decisions subject to both oversight councils. No unilateral program funding decisions. Month 7 onward: [dOSPO Entity Name] — independent legal entity constituted by end of Month 6 (Milestone M1.5).", which fulfils the requirement under ARTICLE II, Section 7(5). 6\. Fund Management Requirements ARTICLE II, Section 7(6) states "Any ada received from a Cardano Blockchain treasury withdrawal, so long as such ada is being held by an administrator prior to further disbursement to the Treasury Withdrawal Recipient, must be kept in one or more separate accounts that can be audited by the Cardano Community, and such accounts shall not be delegated to an SPO but must be delegated to the predefined abstain voting option." This governance action specifies the following withdrawal address, which at the time of assessment is not delegated to an SPO and is delegated to the auto abstain voting option: - stake1uxgkzrl5sj2j2s934nj8lqxq9f5wey4w4r2r0k2xcez67ucmt09vd Finally, the guardrails that require consideration for this governance action are TREASURY-01a, TREASURY-02a, and TREASURY-03a. These are addressed as follows: - TREASURY-01a - The net change limit with governance action ID "gov_action1m3xx08yv788vfxqh6nfvrjtvmqpwezsy0ggaczctkyjmttc2wmxsq4jsr7q" is currently in effect, after being "agreed by the DReps via an on-chain governance action with a threshold of greater than 50% of the active voting stake". - TREASURY-02a - As per the above assessment, this treasury withdrawal does not exceed the current Net Change Limit. - TREASURY-03a - This treasury withdrawal is denominated in ada. We therefore find this governance action **Constitutional**.
None
This governance action sufficiently fulfils the criteria specified for treasury withdrawals in the Cardano Constitution, so is deemed constitutional.
Eastern Cardano Council