The latest session of the Cardano budget process discussions was held during the evening to accommodate different global time zones. The session provided updates on the budget process, upcoming steps, and addressed community questions regarding treasury withdrawals, auditing procedures, dispute resolution, and financial management strategies.
Lloyd Duhon opened the session by welcoming participants and explaining the meeting format, including structured discussions, a question and answer segment, and a review of upcoming governance actions. He emphasized that the purpose of the meeting was to provide clarity on how the budget process was evolving and to gather feedback from the community.
A key discussion point was the current status of the budget process. The committees involved, including the Product Committee, the Technical Steering Committee (TSC), the Open Source Committee (OSC), and the Membership and Community Committee (MCC), have each presented their initial proposals. The focus is now shifting to aligning the final details in preparation for submission as an info action for DS approval. This will determine the total funding requests and align expenditures with Cardano’s strategic priorities for 2025.
Another major discussion topic was treasury withdrawals and financial management. Lloyd explained that treasury withdrawals must align with the net change limit, which must be determined before any funds can be moved. The process is designed to ensure financial sustainability and includes considerations for stablecoins to reduce risk due to ADA price fluctuations. However, challenges such as stablecoin liquidity on Cardano must be addressed before fully integrating them into the funding model.
The discussion also touched on governance actions related to budgeting. Lloyd confirmed that upcoming info actions would allow the DS to provide input on critical decisions such as withdrawal structures, voting frequency, and funding allocations. These governance actions will help shape the final budget proposal before it moves forward to on-chain voting.
A critical aspect of the conversation revolved around dispute resolution and auditing. Lloyd confirmed that the current draft of the Cardano Constitution includes provisions for dispute resolution, ensuring that contractual obligations are honored. To maintain transparency, all budget recipients will be required to sign contracts with explicit dispute resolution clauses. Auditing will be handled by an independent working group, ensuring financial and technical compliance across all funded projects. The process will involve financial audits, technical audits, and potential regulatory reviews where necessary.
The session also covered the process of funding allocation and spending oversight. After DS approval, funds will be managed by the Cardano Development Holdings (CDH) entity, with structured disbursements based on tendering processes and project milestones. The tendering process ensures that funds are allocated efficiently and fairly, with open competition among vendors. Vendors will be required to submit bids, and contracts will be awarded based on transparent selection criteria.
Community engagement was another important topic. Lloyd confirmed that efforts are being made to ensure that budget-related materials are translated into multiple languages to enhance accessibility. Community-driven initiatives, such as regional hubs and educational programs, are being supported through the MCC and other committees to facilitate wider participation in Cardano’s governance.
One of the final questions addressed concerns about the impact of potential delays in the Cardano Constitution’s approval. Lloyd explained that the interim Constitution remains in effect until a new version is ratified. Should delays occur, the budget process will continue under the existing governance structure, ensuring that Cardano’s core operations remain funded and operational.
The session concluded with a call for continued engagement, emphasizing the importance of community feedback in refining the budget process. Participants were encouraged to review the compiled budget proposals on the knowledge base, participate in governance discussions, and prepare for upcoming voting actions.
With the Buenos Aires Constitutional Convention approaching, Lloyd and other committee members will be attending to provide support and answer questions from DS and governance participants. The next phase of the budget process will involve finalizing budget allocations, preparing on-chain info actions, and setting the stage for treasury withdrawals. The meeting ended with a reminder to stay informed and engaged, as the budgeting process remains a pivotal part of Cardano’s decentralized governance evolution.
