blake2b-256
We have determined that this treasury withdrawal governance action is constitutional.
The governance action with ID "gov_action142ndnn9hycuuwld5ddemash2l709ln06qjgfeudq77z45nf3fpdqqn7pwux" and title "5am.earth Trust Layer Targeting Vision 2030 KPIs" 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 "5am.earth Foundation requests 10,000,000 ADA (hard cap) to build an open, Cardano-anchored trust layer for global agricultural supply chains." - The period for delivery of proposed activities as "The 18-month programme delivers across India, Cambodia, and Kenya, gated by three milestones." - Under the "Budget Justification" section a milestone based breakdown and refers to an external document for a more detailed breakdown of the costs. - The circumstances under which funds may be refunded to the Cardano Treasury as "Treasury ADA returns in five circumstances: unspent ADA at programme end; material milestone failure; fraud; scope abandonment; and ADA appreciation surplus in excess of the $3.5M scope-elasticity threshold." 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 that "Neither the 5am.earth Foundation nor any consortium-named entity has received ADA from the Cardano Treasury through Treasury Withdrawal Actions under Article II §7 in the prior 24 months. All consortium-named entities have, however, received funding through Project Catalyst — including the Catalyst Fund 13 grant for Project Swaminathan (project ID 1300178), the initial baseline work that led to the scale opportunity through this proposal.". 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: 240171840 ada - D. Amount of this Treasury Withdrawal: 10000000 ada - E. "C" plus "D" = 250171840 ada - F. "A" minus "E" = 99828160 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 "A combined Admin & Audit allocation is included in the budget, covering Intersect's standard administration fee and a separately procured independent third-party assurer (selected through competitive procurement at M1, with audit reviews at M2 and M3).", 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 states that "Intersect is the named administrator on its standard terms, via the standardized Treasury Reserve Contract / Project-Specific Smart Contract framework developed by Sundae Labs.", which fulfils this requirement. 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: - stake17xzc8pt7fgf0lc0x7eq6z7z6puhsxmzktna7dluahrj6g6ghh5qjr 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