The budget committee of Intersect convened a session to discuss the ongoing budget process. The meeting began with Lloyd Duhon and Lawrence Clark from Intersect, both part of the budget committee, alongside other committee members. The session was held on Zoom to accommodate a larger number of participants and ensure smooth recording and engagement.
The session was set up following the presentation in Dubai, where Lloyd and Lawrence provided an overview of the budget processes within Intersect. The purpose of these meetings is to openly discuss and address questions related to the budget process. Intersect, as an administrative entity, manages the Cardano Development Foundation (CDF), which holds and disburses funds. While the CDF is the financial entity, Intersect functions as the administrator facilitating budget processes and governance.
The budget committee presented an overview of the budgeting process, including how requests from various committees are collected and evaluated. This session marked the beginning of the socialization process, ensuring that community members could contribute their thoughts and feedback. The focus is on aligning budgeting with Cardano's ongoing initiatives, including core development, research, meetups, Catalyst, and other projects that have been historically supported.
It was clarified that the budget process is not set in stone but remains an evolving discussion, aiming to include multiple stakeholders and MBOs. The assumption is that budgeting will follow a structured annual process where committees bring forward proposals that are then reviewed and approved by Delegated Representatives (DS). The goal is to maintain transparency and decentralization while ensuring sustainability in fund allocation.
Concerns about governance and budget approval were also addressed. It was emphasized that Intersect is not the sole decision-maker but rather a facilitator for the budgeting process. The committees within Intersect compile proposals, which are then reviewed collectively before being presented for DS approval. The governance structure includes checks and balances, including audits and oversight mechanisms, to prevent centralization of power.
Questions were raised about the budget range of 300-500 million ADA. This range was determined by treasury experts to ensure sustainable spending without depleting the treasury. The importance of having a defined budget range was underscored, as it provides a financial framework within which committees can plan their activities. The DS retains the authority to review and adjust allocations based on community needs.
Regarding the potential for multiple budget proposals from different MBOs, it was explained that the Constitution mandates an annual budget process. This means that a structured approach must be followed, rather than an open-ended system where multiple proposals can be arbitrarily put forward throughout the year. The structured approach ensures accountability and prevents treasury depletion.
Transparency in the budgeting process was another focal point of discussion. Several community members emphasized the need for detailed budget breakdowns, governance strategies, and audit mechanisms. It was confirmed that the budgeting process includes an internal audit, external audits, and continuous oversight by DS and Constitutional Committee (CC) members. Additionally, financial reports and allocations would be made publicly available.
Concerns were also raised about the potential centralization of the budgeting process within Intersect. It was clarified that the budgeting process includes multiple entities and committees working together to ensure fair fund distribution. The goal is to have more MBOs participate in future budgets, ensuring that fund allocation is diversified.
The discussion also touched upon staking strategies for ADA held by the CDF. It was confirmed that any staking decisions would be made in consultation with DS and CC members to ensure compliance with governance principles. Additionally, the impact of treasury withdrawals on market conditions was discussed, with measures in place to mitigate potential disruptions.
Participants also sought clarity on what would happen in the event that the budget proposal is not approved. It was confirmed that contingency plans are in place, including alternative funding mechanisms to ensure that essential operations can continue. The importance of securing DS approval for the budget was reiterated, as it plays a critical role in ensuring the continued development of the Cardano ecosystem.
The session concluded with an emphasis on continued engagement. Future meetings will provide further details, and the community was encouraged to participate actively in the ongoing discussions. The next budget session was announced for Thursday, with registration links provided for those interested in attending.
