Cardano Foundation Votes YES on 300M ADA Net Change Limit for Epochs 613–713
- The Cardano Foundation has voted in favor of a proposal to cap the amount of ADA that can leave the Treasury to 300 million.
- It says the new limit matches the expected Treasury income and aligns with a more conservative spending plan.
The Cardano Foundation has voted to support a new governance action that sets a new net limit of 300 million ADA for Treasury withdrawals for the next one and a half years.
The Foundation announced that it had backed the action in its position as a delegated representative (DRep) acting on behalf of the interests of thousands of ADA holders. The proposed limit falls within its margin of acceptance and matches with the treasury inflows from last year, it added.
According to data from the Cardano GovTool, the proposal has received the support of 2.21 billion ADA from DReps, a 39.75% share. DReps holding 8.91 billion ADA have officially abstained, while 1.65 billion ADA (29.6%) have voted against it. 30.7% of the DReps, holding 1.9 billion tokens, have yet to vote on the proposal, which was submitted on February 7 and expires this Wednesday.
Aside from DReps, the proposal has received the backing of stake pool operators (SPOs) holding 610 million ADA, or 2.80%, with only 633,000 ADA voting against it. The vast majority (20.5 billion ADA) have yet to vote.
In the Constitutional Committee, two members have voted for it, while none has voted against it. 6 members, or 75%, have yet to vote. This committee is made up of the network’s most important organizations, including EMURGO, Charles Hoskinson’s Input Output Global and the Cardano Foundation.
Cardano’s Proposed Treasury Caps
The governance action proposes a net change limit of 300 million ADA (worth $77.6 million at press time), for the period from Epoch 13, which started in mid-February this year, to Epoch 713, expected to end around early July, 2027.
The proposal states:
The Net Change Limit is the amount of ADA that can be withdrawn from the Cardano Treasury over a set amount of time. If approved, the new proposal would reduce the NCL from the 350 million ADA that had been previously set for the same period. Crucially, the proposal does not dictate how the money will be used, it just sets a spending ceiling.
The proposal is meant to reduce the ecosystem’s spending as it ran on a deficit in the previous period, with inflows only totaling 307 million ADA while the limit stood at 350 million ADA. The treasury receives inflows in two main ways: transaction fees and from a share of the reserves, which is added to the reward pool each epoch.
ADA trades at $0.2588 at press time, gaining 2.6% as trading volume surged over 40% to hit $513 million.
The proposal comes at a time when the network is seeing rapid expansion in both adoption and technical upgrades, as CNF has reported.
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