blake2b-256
We have determined that this treasury withdrawal governance action is constitutional.
The governance action with ID "gov_action122wue2k65qq8gmpz795z2axt8apka6ay6xt3pwg8jxj5yfkujmtsqvlfpu7" and title "Withdraw 120,000,000 ada for AlphaGrowth’s Cardano PRIME" 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 Treasury Withdrawal funds Cardano PRIME, a 12-month community-overseen program to improve DeFi protocol readiness, responsibly activate incentives, and grow durable liquidity across Cardano markets." - The period for delivery of proposed activities as "a 12-month community-overseen program". - The relevant costs and expenses as "The withdrawal requests ₳120,000,000, with USD figures included only as planning references at the $0.16/ADA assumption. The request is denominated in ada, includes a dedicated ₳2,000,000 independent audit or assurance allocation". - The circumstances under which funds may be refunded to the Cardano Treasury as "return-to-treasury triggers for unused, unearned, or unreleased funds" and "six return triggers for unused, unearned, unreleased, or excess funds". 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 "AlphaGrowth has not received Cardano Treasury funding within the prior 24 months.". 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_action15atytcy8ru7mkcs8m7r8mx7k5x36t0h6grtgmak6v5wmf4nq07lsqhakceq". - A. Current NCL Amount: 500000000 ada - B. Current NCL Time Period: Epoch 613 to Epoch 713 (Inclusive) - C. Total of Treasury Withdrawals within the Current NCL Time Period: 337395629 ada - D. Amount of this Treasury Withdrawal: 120000000 ada - E. "C" plus "D" = 457395629 ada - F. "A" minus "E" = 42604371 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 "The request is denominated in ada, includes a dedicated ₳2,000,000 independent audit or assurance allocation" and "reports financial and ecosystem impact metrics quarterly", 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 acts as Constitutional Administrator and manages the withdrawn funds directly.", 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: - stake1784sdxt6jjennmstphgdu7l7c2scf5d02a6cve2dgn5s2kq5u3j9v 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_action15atytcy8ru7mkcs8m7r8mx7k5x36t0h6grtgmak6v5wmf4nq07lsqhakceq" 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