Budget Reconciliation workshop #1 – Day 1, Summary
Governance and Funding
🏛️ Cardano’s unique on-chain governance system and constitution enable innovative funding instruments like convertible grants, positioning it as a leader in ecosystem partnerships.
💰 Proposals requesting over 5M ADA have higher average funding (6.2M ADA) and attract more ambitious projects, but carry increased risk.
🔍 Embedding clear time milestones (quick win, medium, long-term) into ADA proposals ensures measurable impact and enables staged funding triggers.
📊 Utilising data and KPIS more strongly over the next 12 months will allow better tracking of project outcomes and investment measurement.
Treasury Management
🏦 Direct treasury funding should be reserved for public goods and infrastructure, while commercial projects should be funded through intermediaries like Catalyst or Builder’s DAO.
🔄 The Intersect $20M ADA operational budget is crucial for proposal funding and administration; alternative arrangements needed if not approved by DREPs.
🛣️ Prioritising public infrastructure, like highways, benefits the entire ecosystem by increasing capacity and improving capital efficiency.
Proposal Evaluation and Risk Mitigation
⚖️ Requiring at least one pre-funding micro event or social proof for low-engagement proposals can mitigate timing and engagement risks.
🎯 Proposals with clear KPIs are beneficial, but linking smart contract payouts to these conditions requires careful consideration of flexibility.
🌐 Global workshops gather diverse voices from far-reaching communities to elevate them to the world stage in Cardano governance proposals.
Ecosystem Development
💧 Liquidity providers are crucial for stablecoin stability; regulatory costs and institutional support are also important factors.
🔧 Datalus wallet maintenance continuity is critical; it requires community coordination to avoid duplicated efforts and ensure effective support.
🎓 The Andamio tool connects people to projects based on completing educational requirements, demonstrating potential for ecosystem growth.
Research and Analysis
📈 The Beyond MVG proposal plans to study DREP behaviour over time and recommend an incentivization framework based on data analysis.
🔬 Proposals should use targeted interviews, surveys, and data gathering to identify problems before refining solutions in workshops.
Innovative Funding Mechanisms
💼 The Multisig ROM proposal innovatively uses a multisig wallet to fund completed work, distributing funds as work is accomplished.
👥 A decentralised administrative structure in Cardano governance proposals aims to formalise roles quickly and inclusively.
🕒 A 12-month framework for DREPs captures on-chain and off-chain behaviour before allocating rewards, modelling outcomes based on participation.
