# Mar 10, 2025 Budget Comm Minutes ## Attendees:
| Name | Attendance | Role | Voting Seat (Y/N) | | ----------------------------------- | ----------- | ---------------------------------------------------------- | ----------------- | | Jose Maria Francisco Otegui Alvarez | Yes | Observer |


| | Jose Velazquez | Yes | Former Voting Member |


| | Kriss Baird | Yes | Voting Member, IOG, Catalyst |


| | Kristijan Kowalsky | Yes | Voting Member, Tweag |


| | Lawrence Clark | Yes | Intersect Secretary |


| | Lloyd Duhon | Yes | Budget Secretary |


| | Mercy | Yes | Voting Member, WADA |


| | Nicolas Cerny | Yes | Observer, Cardano Foundation Staff |


| | Prof. Steven | Yes | Former Voting Member, Mentor, Chairman of Intersect Board. |


| | Shunsuke Murasaki | Yes | Former Voting Member, Mentor, Emurgo |


| | Simo Simovic |


| Intersect Staff |


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Recording:
Transcript:
## Agenda 1.16.25 * Discussion on the New Budget Process and DREP Engagement: This includes reviewing social sentiment, addressing DREP questions from Tokyo, and clarifying the advisory role of committees. * Internal Committee Operations and Support: Addressing issues like ClickUp access, the committee's budget request, and the need for increased committee involvement in process design. * Working Group Updates and Strategic Planning: Reporting on progress from the Audit and Treasury working groups, establishing the Smart Contract working group, and discussing the Net Change Limit and overall budget timeline.
## Decisions/Actions
| Topic | Discussion | Action Items | | ----------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | Roll Call & Quorum | Lloyd Duhon conducted roll call. Quorum was met with voting members present. Apologies were noted for Andreas and JJ. Chris Baird had not yet joined. |


| | Agenda Review | Jose Velazquez requested to add the committee's budget request to the agenda. It was decided to address it after DREP feedback was compiled. |


| | ClickUp Access Issues | Jose Velazquez and Mercy reported losing access to ClickUp. Lawrence Clark explained a new "members and guests" account feature in ClickUp caused the issue and the tech team is working on a fix. | Lawrence Clark to follow up with the tech team on ClickUp access issues and notify affected members when resolved. \<br> Lloyd Duhon to compile DREP feedback and post it in Discord as a document. | | Social Updates: DREP Role & Budget Process | Lloyd Duhon shared social media sentiment following Friday's announcement. Key themes included questions about the DREP role, concerns about the workload for DREPs, and potential for abuse if DREPs have to repeatedly review budgets. Mixed sentiment was noted. |


| | DREP Conflict of Interest | Jose Velazquez raised concerns about DREPs voting on budget items that affect their own salaries or line items, and their ability to adjust prices. Lloyd Duhon clarified that a proposal is for a set amount, but DREPs could negotiate offline for less. Lawrence Clark stressed the need for DREP education on their responsibilities. |


| | Board's Pivot Decision Basis | Nicolas Cerny asked for documentation supporting the board's decision to pivot the budget process. Lawrence Clark stated that sentiment from the community, especially Charles's X statements, was a key driver. Lloyd Duhon has an Excel spreadsheet of positive/negative comments that can be shared. |


| | DREP Mandate & Delegated Authority | Discussion on the importance of Intersect obtaining delegated authority from DREPs. It was acknowledged that DREPs may delegate some authority due to the significant workload involved. |


| | Questions from Tokyo DREPs | Shunsuke Murasaki shared three key questions from DREPs in Tokyo: 1) Can DREPs propose and vote on their own proposals? 2) What is the method/threshold for including budget items in the committee budget? 3) Can DREPs make separate budget asks outside the Intersect budget? |


| | Responses to Tokyo DREP Questions | Lloyd Duhon indicated there's nothing stopping anyone from putting forward a proposal with a DREP. Voting on one's own proposal will be felt out by the community. Process for voting percentages is being worked through, and Intersect will rapidly seek DREP feedback through public forums and one-on-one discussions. Lawrence Clark asked Murasaki to email the questions for FAQ development. | Shunsuke Murasaki to email his questions to Lawrence Clark for FAQ development. | | Multiple Budget Info Actions & Net Change Limit | Lawrence Clark confirmed there could be multiple budget info actions per the constitution. If overall budget requests exceed the Net Change Limit (NCL), DREPs would need to approve another NCL. The risk of proposals breaching the current 350M NCL was discussed. |


| | Committee Role as Advisor | Jose Velazquez stressed Intersect's obligation to provide insight, expertise, oversight, and guidance on proposals. Lawrence Clark agreed that committees should provide unbiased reviews. Nicolas Cerny questioned the sustainability of committees providing free consultancy without compensation. |


| | Committee Budget Proposals | Simo Simovic and Lloyd Duhon discussed whether committees should continue to propose their own budgets through the new form. Lawrence Clark confirmed committees can submit proposals, taking into account community feedback and avoiding duplication of existing vendor work. | Lawrence Clark and the secretaries to work with committees this week to prepare and submit their budget proposals. | | Mandate Indication from DREPs | Mercy inquired how a mandate from DREPs would be indicated. Lawrence Clark explained that specific wording in the proposal would request DREP permission for the committee to manage funds, and DREPs would sign off on the committee members' expertise and fund management plan. |


| | Audit Working Group Update | Jose Velazquez reported on a meeting with Christian to add potential auditors to GovTool for DREP voting. He also mentioned exploring stipends for part-time employees for the working group due to significant work. Terms of reference will be submitted within 2-3 days. | Jose Velazquez to submit terms of reference for audit to DREPs on GovTool within 2-3 days. | | Smart Contract Working Group Motion | Lawrence Clark proposed spinning up a Smart Contract Working Group for the budget committee. The motion was moved by Prof. Steven, seconded by Kriss Baird, and passed unanimously. | A Smart Contract Working Group for the budget committee will be formed. | | Net Change Limit & ADA Price | Shunsuke Murasaki inquired about potential multiple NCLs if the budget skyrockets. Jose Velazquez asked about the ADA price (50 cents) used for budget requests. Lawrence Clark noted the current average is around 51 cents but the exact conversion rate is pending smart contract details. |


| | Committee Involvement in Design | Mercy expressed feeling "blindsided" by the new pivot and desired more involvement in the design process, suggesting weekly meetings aren't enough. Lawrence Clark acknowledged this and committed to championing committee members' invitation to task force sessions for greater operational insight. | Lawrence Clark to ensure committee members receive invitations to relevant task force sessions. | | DREP Voting on Line Items | Jose Velazquez asked if DREP voting on line items would be based on voting power or one-person, one-vote. Lloyd Duhon stated it's up to the DREPs, but tooling can track both total voters and ADA delegated. |


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