Over the past few weeks, Intersect has coordinated an off-chain process to gather community input on budget priorities for Cardano. We recognise that a lot changed along the way, and we know that has been far from smooth. We made adjustments in response to community feedback and tried to stay agile, even if the process wasn’t perfect.

What we’ve seen so far

The final temperature check via Ekklesia concludes that 40 proposals have crossed the threshold set by the Budget Committee, which required support from more than 50% of participating stake in our off-chain process.

Participation in the process has been strong, with more than ₳3.8 billion in stake engaged, representing over 70% active stake on mainnet. In our view, these are encouraging signs and provide DReps with a credible signal of where community support lies. This also offers a sound basis for considering which proposals may be supported if raised on-chain.

This process was always intended as a way to collectively shape a budget info action ahead of any formal on-chain vote. Whether this remains the best approach is open for discussion as we continue to rethink Intersect’s role in coordinating these efforts.

The final temperature check count

Given that this is the first live use of the Ekklesia tool, we are working to ensure that all finalized ballot data is accurate before publishing and submitting it for final ratification on-chain - serving as an immutable reference for our off-chain process. This work is expected to conclude on 6 May 2025, with final publication anticipated before the start of epoch 557 on Friday, 9 May 2025.

Reconsidering the second signaling window

A second, follow-up signalling window via Ekklesia was recently suggested to give vendors another opportunity to demonstrate the value of their proposals to DReps and the wider community, particularly if they felt they could act on the feedback received and improve their proposals accordingly.

However, we've also heard clear and consistent feedback from both DReps and community members that this cycle should now come to a close. Many highlighted the need to pause, reflect, and focus on rebuilding and improving the process going forward. Others noted that the current set of proposals crossing the threshold, amounting to approximately ₳280 million, is sufficient for now, leaving headroom under the net change limit (NCL) for direct or alternative budget info actions in the future.

Following a decision by the Budget Committee yesterday, we are not moving forward with a second round of signaling. We recognise this is another change in a process that has already seen several and evolved significantly. But given the strong desire to reflect a broad community view, and considering what the current 40 proposals represent for Cardano, the Budget committee believe it is the right moment to pause here - creating space for the community to move beyond the off-chain process and formally test support on-chain.

Acknowledging alternative funding routes

It’s also important to recognise that several alternative funding pathways have emerged through this process. Catalyst, Cardano Builder DAO, and the Intersect open source office & committee have collectively had signalling approving focus areas representing an estimated ₳75 million in potential ecosystem funding, if approved on-chain. This ₳75 million sits within the approximately ₳280 million in proposals that passed the signaling threshold and would be made available if the budget info action and subsequent treasury withdrawal is approved.

These alternative routes provide meaningful funding opportunities for proposers whose ideas may not continue through this cycle but remain valuable to the ecosystem.

What happens next

Given that all stages of this process have so far taken place off-chain, the Budget committee agreed to move forward with submitting an on-chain budget info action. This decision recognises the level of participation, the signals received, and the shared desire to respect Cardano’s on-chain governance framework with a pause to off-chain processes. 

We’ll be reaching out to all successful proposers in the coming days to help shape the contracting stage, ensuring a smooth transition from proposal to delivery. We will also be holding open AMAs for the broader community to provide feedback on the set-up and Intersect’s role as an Administrator

Following the budget info action, if approved, we plan to raise a treasury withdrawal action shortly after. This will include further clarification around the smart contract-based funding framework being built by Sundae Labs, outlining how disbursements will be managed and monitored in alignment with the Constitution.

Thank you

This marks the conclusion of this stage in the budget cycle for Intersect, whilst it opens the next chapter on-chain and beyond. We want to thank everyone who participated, whether by submitting proposals, providing feedback, engaging in discussions, or signaling preferences, and reaffirm our commitment to working with the community to improve and evolve these processes together.