Eastern Cardano Council

Following further review of the argument made in this post, the Eastern Cardano Council have agreed (7-0) that the 350 million ADA NCL Info action should be assessed based the constitution that was active when the governance action was submitted, which was the previous constitution. As the previous constitution did not permit the Constitutional Committee to veto Info governance actions based on constitutionality, and the NCL Info action was approved by DReps, we have therefore determined that the NCL is active and can be used when assessing treasury withdrawal governance actions. Note, this is a reversal of our previous position about whether the NCL is active, which was based on the current constitution. That decision was prior to the argument being made that we should be assessing the NCL Info action with the previous constitution.

Net Change Limit Status The ECC team recently discussed the status of Cardano's Net Change Limit (NCL) and have determined that there is currently NO active NCL. This means that we will be required to find the treasury withdrawal governance actions currently on-chain as unconstitutional. The previously active NCL (gov_action169kllwhfmp488je5x5rwvufd08p8sztdcf0ghf5sp6ey2gnjdwaqql47xry) ended at the conclusion of epoch 612. While 2 governance actions were recently submitted to establish a new NCL, neither have met the criteria necessary to be considered ratified. While the Info action titled "Net Change Limit (Epoch 613 to Epoch 713)" (gov_action1m3xx08yv788vfxqh6nfvrjtvmqpwezsy0ggaczctkyjmttc2wmxsq4jsr7q) did meet the 50% DRep approval requirement, it did NOT meet the constitutionality assessment threshold by the Constitutional Committee. The latest NCL governance action titled "Net Change Limit of 300 Million ADA for Epochs 613–713" (gov_action1wwjwkg2g0qwr0mehey9r8gwn6qz3r28wl6wdl2s75kfmpy8j87tqqtft9tp) did NOT meet the 50% DRep approval requirement.

Net Change Limit Status The ECC team recently discussed the status of Cardano's Net Change Limit (NCL) and have determined that there is currently NO active NCL. This means that we will be required to find the treasury withdrawal governance actions currently on-chain as unconstitutional. The previously active NCL (gov_action169kllwhfmp488je5x5rwvufd08p8sztdcf0ghf5sp6ey2gnjdwaqql47xry) ended at the conclusion of epoch 612. While 2 governance actions were recently submitted to establish a new NCL, neither have met the criteria necessary to be considered ratified. While the Info action titled "Net Change Limit (Epoch 613 to Epoch 713)" (gov_action1m3xx08yv788vfxqh6nfvrjtvmqpwezsy0ggaczctkyjmttc2wmxsq4jsr7q) did meet the 50% DRep approval requirement, it did NOT meet the constitutionality assessment threshold by the Constitutional Committee. The latest NCL governance action titled "Net Change Limit of 300 Million ADA for Epochs 613–713" (gov_action1wwjwkg2g0qwr0mehey9r8gwn6qz3r28wl6wdl2s75kfmpy8j87tqqtft9tp) did NOT meet the 50% DRep approval requirement.