{ "@context": { "@language": "en", "CIP100": "https://github.com/cardano-foundation/CIPs/blob/master/CIP-0100/README.md#", "CIP136": "https://github.com/cardano-foundation/CIPs/blob/master/CIP-0136/README.md#", "hashAlgorithm": "CIP100:hashAlgorithm", "body": { "@id": "CIP136:body", "@context": { "references": { "@id": "CIP100:references", "@container": "@set", "@context": { "GovernanceMetadata": "CIP100:GovernanceMetadataReference", "Other": "CIP100:OtherReference", "label": "CIP100:reference-label", "uri": "CIP100:reference-uri", "RelevantArticles": "CIP136:RelevantArticles" } }, "summary": "CIP136:summary", "rationaleStatement": "CIP136:rationaleStatement", "precedentDiscussion": "CIP136:precedentDiscussion", "counterargumentDiscussion": "CIP136:counterargumentDiscussion", "conclusion": "CIP136:conclusion", "internalVote": { "@id": "CIP136:internalVote", "@container": "@set", "@context": { "constitutional": "CIP136:constitutional", "unconstitutional": "CIP136:unconstitutional", "abstain": "CIP136:abstain", "didNotVote": "CIP136:didNotVote" } } } }, "authors": { "@id": "CIP100:authors", "@container": "@set", "@context": { "did": "@id", "name": "http://xmlns.com/foaf/0.1/name", "witness": { "@id": "CIP100:witness", "@context": { "witnessAlgorithm": "CIP100:witnessAlgorithm", "publicKey": "CIP100:publicKey", "signature": "CIP100:signature" } } } } }, "hashAlgorithm": "blake2b-256", "body": { "summary": "We have determined that this treasury withdrawal governance action is constitutional.", "rationaleStatement": "The governance action with ID \"gov_action1uzgqlh049u0j7epel29r425vyf9ttxmqwngw9kemyly0q6cwt5esqpwp09a\" and title \"Scalus: Cardano’s Application Platform for Building, Launching, and Scaling\" is a Treasury Withdrawal, and is therefore subject to the following sections and guardrails in the Cardano Constitution.\n\nARTICLE 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.\n\nThis 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.\n\nARTICLE II, Section 7 specifies that Treasury Withdrawal governance actions must include the following:\n\n1\\. Purpose, Delivery Period, Costs, and Refund Conditions\n\nThis governance action specifies:\n\n- The purpose of the withdrawal as \"funding the development of Scalus application platform for the 12 months period\"\n- The period for delivery of proposed activities as \"July 2026 - June 2027\"\n- The relevant costs and expenses under the heading \"Budget\"\n- The circumstances under which funds may be refunded to the Cardano Treasury as \"Funds remaining in the contract after expiration sweep back to the Cardano Treasury automatically. Enforced at the contract level; cannot be overridden.\"\n\nThese elements fulfil the requirements of Article II, Section 7(1).\n\n2\\. Prior Treasury Funding Disclosure\n\nARTICLE II, Section 7(2) requires disclosure of whether the prospective recipient has received ada from the Cardano Treasury within the last 24 months.\n\nThis governance action states that \"this is our second withdrawal in the last 24 months. The previous was submitted in July 2025, and enacted in August 2025.\". This fulfils the requirement of ARTICLE II, Section 7(2).\n\n3\\. Net Change Limit (NCL)\n\nARTICLE II, Section 7(3) requires that Treasury Withdrawals must not exceed the Net Change Limit.\n\nThe Net Change Limit in effect at the time of submission of this vote on-chain is the governance action with ID \"gov_action1m3xx08yv788vfxqh6nfvrjtvmqpwezsy0ggaczctkyjmttc2wmxsq4jsr7q\".\n\n- A. Current NCL Amount: 350000000 ada\n- B. Current NCL Time Period: Epoch 613 to Epoch 713 (Inclusive)\n- C. Total of Treasury Withdrawals within the Current NCL Time Period: 207255840 ada\n- D. Amount of this Treasury Withdrawal: 8503000 ada\n- E. \"C\" plus \"D\" = 215758840 ada\n- F. \"A\" minus \"E\" = 134241160 ada\n\nAs the value of \"F\" is greater than or equal to zero, this governance action fulfils the NCL requirement.\n\n4\\. Audit Allocation and Oversight Metrics\n\nARTICLE 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.\"\n\nThis governance action states that \"An external financial auditor will scrutinize Scalus's finances and treasury management, with the goal to publish a resulting report in Q3 2027. It will be remunerated with funds explicitly allocated in this proposal for that purpose.\", which fulfils the requirements of ARTICLE II, Section 7(4).\n\n5\\. Designated Administrators\n\nARTICLE II, Section 7(5) requires that one or more administrators are designated to monitor fund usage and ensure deliverables are achieved.\n\nThis governance action provides information regarding the use of \"Smart Contract Escrow\" and \"Independent Oversight Board\" under the \"Administration\" section, which fulfils this requirement.\n\n6\\. Fund Management Requirements\n\nARTICLE 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.\"\n\nThis 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:\n\n- stake17yg2dle5tvyc4q7gy5cqel4sgd6xprjmm4u0jzzv8g0z9zgfz40xu\n\nFinally, the guardrails that require consideration for this governance action are TREASURY-01a, TREASURY-02a, and TREASURY-03a. These are addressed as follows:\n\n- 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\".\n- TREASURY-02a - As per the above assessment, this treasury withdrawal does not exceed the current Net Change Limit.\n- TREASURY-03a - This treasury withdrawal is denominated in ada.\n\nWe therefore find this governance action **Constitutional**.", "precedentDiscussion": "None", "counterargumentDiscussion": "None", "conclusion": "This governance action sufficiently fulfils the criteria specified for treasury withdrawals in the Cardano Constitution, so is deemed constitutional.", "internalVote": { "constitutional": 4, "unconstitutional": 0, "abstain": 2, "didNotVote": 1 }, "references": [] }, "authors": [ { "name": "Eastern Cardano Council", "witness": { "witnessAlgorithm": "ed25519", "publicKey": "a12e0d6516828fd47afc70e2eccdfa11a4f4c76cb5eca55bdc9349865a70e4fe", "signature": "f24be6e678a6ebe7d223b72fd311057bd3920e4ade78ab9db73061b0c74525fd3d914374554ddbb54230f815bdb16fc013ac156feb500e893bedd2d86a955c08" } } ] }