{ "@context": { "@language": "en", "CIP100": "https://github.com/cardano-foundation/CIPs/blob/master/CIP-0100/README.md#", "CIP136": "https://github.com/cardano-foundation/CIPs/blob/master/CIP-0136/README.md#", "hashAlgorithm": "CIP100:hashAlgorithm", "body": { "@id": "CIP136:body", "@context": { "references": { "@id": "CIP100:references", "@container": "@set", "@context": { "GovernanceMetadata": "CIP100:GovernanceMetadataReference", "Other": "CIP100:OtherReference", "label": "CIP100:reference-label", "uri": "CIP100:reference-uri", "RelevantArticles": "CIP136:RelevantArticles" } }, "summary": "CIP136:summary", "rationaleStatement": "CIP136:rationaleStatement", "precedentDiscussion": "CIP136:precedentDiscussion", "counterargumentDiscussion": "CIP136:counterargumentDiscussion", "conclusion": "CIP136:conclusion", "internalVote": { "@id": "CIP136:internalVote", "@container": "@set", "@context": { "constitutional": "CIP136:constitutional", "unconstitutional": "CIP136:unconstitutional", "abstain": "CIP136:abstain", "didNotVote": "CIP136:didNotVote" } } } }, "authors": { "@id": "CIP100:authors", "@container": "@set", "@context": { "did": "@id", "name": "http://xmlns.com/foaf/0.1/name", "witness": { "@id": "CIP100:witness", "@context": { "witnessAlgorithm": "CIP100:witnessAlgorithm", "publicKey": "CIP100:publicKey", "signature": "CIP100:signature" } } } } }, "hashAlgorithm": "blake2b-256", "body": { "summary": "We consider this governance action to be unconstitutional.", "rationaleStatement": "This proposal is a Treasury Withdrawal Governance Action to withdraw ₳2,750,000 from the Cardano Treasury for the “Rare Evo and Dev Gov Day 2026: Cardano Title Sponsorship” project by Rare Network. Regarding Article 2, Section 6, Paragraphs 1 and 2 of the Cardano Constitution, this proposal adopts an immutable off-chain reference using IPFS. Furthermore, the proposal text includes an overview, rationale, budget breakdown, milestones, contract management, audit and oversight arrangements, and refund conditions, thereby providing information sufficient for evaluation as a Governance Action. Regarding Article 2, Section 7, Paragraph 1 of the Cardano Constitution, this proposal aims to deliver Rare Evo 2026 and Cardano Dev Gov Day 2026. The proposal includes the implementation period, cost breakdown, milestones, and conditions for the return of unused funds. Regarding Article 2, Section 7, Paragraph 3, the requested amount of ₳2,750,000 falls within the 350M ADA Net Change Limit applicable to Epochs 613–713 at the time of submission. Regarding Article 2, Section 7, Paragraph 4, this proposal includes an allocation of ₳166,666.67 for “Admin & Audit Fees.” The proposal also states that audit and oversight costs are included within its indirect costs. Regarding Article 2, Section 7, Paragraph 5, this proposal describes a framework under which Intersect is responsible for treasury administration and oversight of project progress. Furthermore, regarding Article 2, Section 7, Paragraph 6, this proposal adopts the treasury management smart contract framework developed by Sundae Labs and describes a separated account structure utilizing the Treasury Reserve Smart Contract (TRSC) and Project-Specific Smart Contracts (PSSC) managed by Intersect. The proposal also describes an oversight framework involving an independent Oversight Committee. Since the TRSC and PSSC are intended to operate under a fund management structure in which funds cannot be delegated to an SPO and are instead delegated to the predefined abstain voting option, we determine that the proposal is intended to align with the requirements relating to “one or more separate accounts that can be audited by the Cardano Community,” “not be delegated to an SPO,” and “must be delegated to the predefined abstain voting option.” However, Article 2, Section 7, Paragraph 2 of the Cardano Constitution requires prospective recipients of Treasury Withdrawals to disclose whether they have received ADA from the Cardano Treasury within the past 24 months. Based on our review of this proposal, we were unable to confirm any explicit disclosure regarding whether Rare Network has received ADA from the Cardano Treasury within the past 24 months. We interpret Article 2, Section 7, Paragraph 2 as requiring explicit disclosure even when no such Treasury funding has been received. We have also confirmed examples in other Treasury Withdrawal proposals where it is explicitly stated that no Treasury funding has been received within the previous 24 months. Therefore, we cannot confirm that this proposal satisfies the disclosure requirement under Article 2, Section 7, Paragraph 2 of the Cardano Constitution. Accordingly, we determine that this proposal is unconstitutional.", "precedentDiscussion": "None", "counterargumentDiscussion": "Some of our members also expressed concerns regarding Article 2, Section 7, Paragraph 6 of the Constitution. It is difficult to say that the structure of consolidating funds for multiple projects into the TRSC using a single receiving address is necessarily consistent with the requirement for “separate accounts” set forth in Article 2, Section 7, Paragraph 6. In light of this, some of our members considered the structure to be unconstitutional.", "conclusion": "For the reasons stated above, we determine that it is unconstitutional.", "internalVote": { "constitutional": 0, "unconstitutional": 3, "abstain": 1, "didNotVote": 0 }, "references": [ { "@type": "RelevantArticles", "label": "CARDANO BLOCKCHAIN ECOSYSTEM CONSTITUTION", "uri": "ipfs://bafkreieyuknozbtewyurfqoagvplvykadn6a4u6wglupavdz46bbsnnl6e" } ] }, "authors": [ { "name": "Cardano Japan Council", "witness": { "witnessAlgorithm": "ed25519", "publicKey": "833ddc6eedc272e763c33b9e6ed91efea5f0a5161f05bf72c83326a9b11507de", "signature": "33f9a0fcc726dc4621002be094fb0a0687b78a4ac70b780957d9563bff16019ca652e04d83e910c71e0ed4935f78ab1f89c5972a6c451aea17fef2642404ac0d" } } ] }