Mar 3, 2025 Budget Comm Minutes

Attendees:

Name	Attendance	Role	Voting Seat (Y/N)
Andreas Pletscher	Yes	Observer, COO of Cardano Foundation. (Temporary Voting member while Rita Mistry was on sabbatical.)
Dave Dionisio	Yes	Observer
J.J. Siler	Yes	Former Voting Member, Mentor, IOG STaff
Jose Maria Francisco Otegui Alvarez	Yes	Observer
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	Yes	Intersect Staff

• Name - Observer

Recording: https://drive.google.com/file/d/1vTy9DSkyw17aOnT3nuKSN9Tkj0vqhmLv/view?usp=drive_link

Transcript: https://docs.google.com/document/d/14WSag6Tpjs58lLG7fysmZmOuympQN8EIIAyymr93jmo/edit?tab=t.0#heading=h.a72v9rbbceao

Agenda 1.16.25

• Rollout of the New Budget Process: Discussion centered on the significant pivot to a DREP-centric budget process, including changes to procurement, vendor selection, and the committees' new advisory role.

• Timeline and Net Change Limit (NCL) Review: Updates on the revised budget timeline, the proposed delay for the NCL decision, and the various models being considered for the NCL.

• Working Group Progress and Committee Integration: Reports from the Audit and newly formed Smart Contract working groups, alongside an overarching discussion on improving committee involvement and communication within the evolving budget framework.

Decisions/Actions

Topic	Discussion	Action Items
Roll Call & Quorum	Lloyd Duhon conducted roll call. Several voting members and observers were present. Noted anticipated arrival of Steve and Chris Baird.
Updates from Longmont (New Budget Process)	Lawrence Clark shared updates from Longmont, including feedback from Charles's X (Twitter) space, Cardano forum, and direct community feedback. The main pivot is to engage DREPs more directly in procurement and vendor selection.
Procurement & Vendor Selection Pivot	The committees will no longer be gatekeepers for proposals. Anyone can submit a budget proposal, which will then be prepared and presented to DREPs for review and ratification. Committees can provide technical oversight but not dictate approvals.
DREP Expertise vs. Committee Expertise	Andreas Pletscher questioned why DREPs, who are not elected as experts, would suddenly become experts on areas like the product roadmap. Dave Dionisio clarified that committees were elected by Intersect membership, not the entire community, and the new approach aims for DREPs to be the ultimate approvers, with committees acting as advisory bodies.
Audit Responsibilities	Kristijan Kowalsky asked about DREP/community concerns regarding audit responsibilities, specifically technical vs. financial audits. Lawrence Clark explained that Intersect is not qualified for technical audits, which would likely leverage external experts. For financial audits, a recommendation list of ecosystem auditors would be prepared for DREP approval.
Confidence in DREP Feedback	Jose Velazquez asked how confident the committee is that the feedback received truly represents DREP desires. Lawrence Clark stated that all proposals will be published for community and DREP review, with DREPs ultimately providing sponsorship/approval.
Committee Role as Advisory Board	Shunsuke Murasaki inquired if the new advisory role applies to all committees and whether proposals not listed in the current budget can be submitted. Lawrence Clark confirmed this is an open process; anyone can propose anything, and committees can only validate legitimacy, not recommend or reject.
Timeline Implications & Budget Process Reset	Mercy questioned the timeline implications and rationale for such a significant pivot. Lawrence Clark presented the revised roadmap: product roadmap GO approved (March 7), permissionless forms open, net change limit decision (March 25), proposals published (March 31), community review/DREP approval (April 1 onwards), leading to a reconciliation workshop and treasury withdrawals by June 3rd.	Jose Velazquez to provide his percentage model proposal for the Net Change Limit in writing.
Continuity of Services	Kriss Baird asked about the impact on the continuation of services (e.g., Catalyst). Lawrence Clark clarified that existing proposals (like Catalyst) would go directly to the reconciliation workshop for DREP review without committee ratification.
Time Constraints & Bureaucracy Concerns	Kriss Baird expressed concern about delays leading to a wasted year without resources, citing the lack of Cardano presence at industry events. Lloyd Duhon noted the June 3rd treasury withdrawal date remains, but it requires compressed, hard work in the next few weeks.
Net Change Limit (NCL) Discussion	Jose Maria Francisco Otegui Alvarez questioned if the NCL could be posted earlier. Lawrence Clark explained the March 25th date allows time for Jose's model and DREP review. Discussion also covered the possibility of multiple NCLs and the constitutional aspect of raising a budget simultaneously with an NCL.
NCL Models (Stark, Monte Carlo, Percentage)	Jose Velazquez requested all three NCL models (Intersect's Stark, CF's Monte Carlo, and Civics Committee's Percentage model) for DREP informed decision-making. Lawrence Clark confirmed Intersect's data is on GovTool but doesn't have the CF's Monte Carlo model.	Andreas Pletscher to retrieve the CF's Monte Carlo model for the NCL and send it to Lawrence Clark.
Japanese DREP Preparedness	Shunsuke Murasaki noted that Japanese DREPs are largely unaware of this new process and may require a special session to prepare them. Lawrence Clark acknowledged this and highlighted the need for rapid communication and tooling.	Shunsuke Murasaki offered to volunteer to help mitigate the situation with Japanese DREPs; Lawrence Clark acknowledged the offer.
Committee Communication Strategy	Jose Velazquez requested a simplified way for working group leads to use the Cardano budget committee Twitter. Lawrence Clark agreed to expand access to the Twitter account and asked for messages to be filtered through Lloyd Duhon for initial review and coordination.	All committee members to filter their desired public communications through Lloyd Duhon for coordination.
Motion to Adopt New Process	A motion was made by JJ Siler and seconded by Jose Velazquez to move forward with the new timeline and proposal. The motion passed with a vote of six in favor to three against.