이 예산 제안의 **주요 목표는 Cardano에서 유동성을 증가시키는 것, 특히 스테이블코인 유동성을 지원하는 것임**.

부차적인 목표는 국고(treasury)를 위한 수익 창출임.

총 5,000만 ADA(에이다)를 요청하여 ADA와 법정화폐 담보 스테이블코인으로 구성된 펀드를 만들어 Cardano의 탈중앙화 금융(DeFi) 생태계를 지원할 계획임.

이 예산의 대부분(99%)은 탈중앙화 거래소(DEX)와 대출 프로토콜 등 DeFi 프로토콜에 배분되어 Cardano 내 유동성 공급에 사용될 예정임.

펀드 자산은 ADA, 법정화폐 담보 스테이블코인, 그리고 DeFi 프로토콜에 배치된 유동성 토큰만 포함해야 함.

펀드는 9명으로 구성된 임시 위원회가 스마트 계약을 통해 관리하며, 이 위원회는 공개적으로 신원이 확인된 인물들로 구성되고, 새로 설립된 국고 DAO(tDAO)의 감독을 받음.

1년 후에는 tDAO가 새 위원회를 선출해야 하며, 그렇지 않으면 펀드 운영이 중단됨.

tDAO는 위원회 탄핵, 선출, 펀드 종료 및 자금 국고 환원 권한을 가짐.

추가로, 이 제안은 향후 커뮤니티 참여 제안들을 위한 법적 프레임워크와 집행 및 감독 기능을 갖춘 오픈소스 거버넌스 계약도 수립할 예정임[2][5].

---

**주요 내용 요약**

- 5,000만 ADA 규모의 펀드 조성

- ADA, 법정화폐 담보 스테이블코인, 유동성 토큰만 포함

- 99% 이상을 DEX, 대출 프로토콜 등 DeFi에 배분

- 9명 임시 위원회가 스마트 계약으로 펀드 관리

- tDAO가 감독 및 위원회 선출, 탄핵, 펀드 종료 권한 보유

- 1년 후 위원회 재선출 의무

- 법적 프레임워크 및 오픈소스 거버넌스 계약 수립 포함

---

**주석**

- *스테이블코인(stablecoin)*: 법정화폐 등 자산에 가치가 연동된 암호화폐

- *탈중앙화 거래소(DEX)*: 중앙기관 없이 운영되는 암호화폐 거래소

- *유동성 토큰(liquidity tokens)*: 유동성 공급자가 받는 증명 토큰

- *스마트 계약(smart contract)*: 블록체인 상에서 자동 실행되는 계약 코드

- *DAO(Decentralized Autonomous Organization)*: 탈중앙화 자율 조직

요약하면, 50M 에이다(ADA)를 12개월 예산으로 요청했음.

최대 50만 ADA는 펀드의 법적 프레임워크 구축과 집행 및 감독 기능을 가진 스마트 계약 생성에 사용됨.

나머지 49.5M ADA는 Cardano DeFi 프로토콜에 자금 지원에 할당됨.

펀드의 최대 35%는 DEX에서 스테이블코인과 페어링할 ADA로 유지되고, 나머지는 스테이블코인 발행에 사용됨.

운영은 9인 위원회가 스마트 계약으로 관리하며, 자금 지출 시 5명 서명이 필요함.

tDAO는 dReps로 구성되어 위원회 구성원 선출, 탄핵, 지출 제한 권한을 가짐.

위원회는 ADA를 법정화폐 담보 스테이블코인으로 전환해 DeFi 프로토콜(DEX, 대출 등)에 배포함.

DeFi 프로토콜에 배포된 자금은 수익을 창출하며, 매월 수익의 15%는 ADA로 환전해 금고로 송금, 85%는 프로토콜에 재투자됨.

위원회가 보유한 미배포 ADA는 헌법상 스테이킹하지 않음.

DeFi 프로토콜은 스테이블코인 유동성 수령자로 신청 가능하며, 위원회가 성장 및 수익 계획이 우수한 프로토콜에 자금을 배분함.

각 DeFi 카테고리별 최대 2개 프로토콜 선정으로 유동성 분산 최소화함.

위원회는 매월 자금 배포 및 비용 내역을 보고하며, 모든 유동성 토큰은 스마트 계약에 보관되어 공개 감사 가능함.

위원회 구성원은 월 1,000달러 상당 ADA 또는 선택한 스테이블코인으로 보상받음(총 9,000달러).

법률 비용, 감사, KYC/KYB 등 관리 비용은 펀드에서 지불하며, 예상치 못한 비용 발생 시 커뮤니티에 공지하고 tDAO가 과도한 비용 시 펀드 종료 투표 가능함.

펀드는 Cardano 커뮤니티 소유로 영구 운영되나 tDAO가 언제든 종료 가능함.

펀드 운영은 거버넌스 프로토콜 지침에 따라 스테이블코인과 유동성 성장에 집중함.

Cardano에 스테이블코인 유동성이 필요한 이유는 신규 사용자 온보딩과 시장 변동성 대비 안전자산 역할 때문임.

스테이블코인 유동성이 깊을수록 DEX에서 페깅 유지가 용이해지고, 더 많은 전문 마켓메이커가 유입되어 DeFi 혁신과 개발자 및 소매 참여를 촉진함.

스테이블코인 종류 중 법정화폐 담보 스테이블코인은 자본 효율성과 안정성 면에서 우수하나 중앙화 경향이 있음.

ADA를 법정화폐로 전환해 스테이블코인 발행 시 가격 충격 우려가 있으나, 전체 ADA의 35%는 ADA로 유지되고, OTC 거래, 달러 코스트 애버리징 등 방법으로 가격 영향 최소화 가능함.

예를 들어, 코인베이스 ADA 일평균 거래량 3,000만 ADA 중 50만 ADA씩 65일간 분산 매도 시 전체 거래량의 1.6%에 불과해 가격 충격이 크지 않음.

주요 성과지표(KPI)는 스테이블코인 슬리피지 50% 감소와 연 4% 재무 수익 목표임.

이 펀드는 Cardano 생태계에 지속 가능한 수익원을 제공하고, 법적·스마트 계약 기반 운영 구조를 공개해 향후 유사 제안에 활용 가능함.

---

**주요 용어 주석**

- ADA: Cardano 블록체인의 기본 암호화폐 단위

- DEX: 탈중앙화 거래소(Decentralized Exchange)

- DeFi: 탈중앙화 금융(Decentralized Finance)

- tDAO: Cardano의 대표자 집단인 dReps로 구성된 거버넌스 조직

- 스테이블코인: 가치가 법정화폐 등에 고정된 암호화폐

- 슬리피지: 거래 시 예상 가격과 실제 체결 가격 간 차이

- OTC: 장외거래(Over The Counter)

- TVL: 총 예치금액(Total Value Locked)

## 요약

이 제안은 카르다노(Cardano) 생태계의 스테이블코인 유동성 증대를 목표로, 50M ₳(에이다) 규모의 기금을 스마트 컨트랙트로 관리하는 체계를 구축하는 내용임.
기금의 운영과 감독은 두 기구(행정위원회, tDAO)가 분리된 권한으로 수행함.
법적 구조는 기금, 위원회, tDAO의 책임과 권리를 명확히 하기 위해 별도 법인 설립을 검토 중임.
예산 집행은 2단계로 나뉘며, 1단계(최대 500K ₳)는 스마트 컨트랙트 개발·감사, 법무 비용 등 초기 구축에 사용됨.
2단계(49.5M ₳)는 에이다를 스테이블코인으로 전환 및 유동성 공급에 집행됨.
기금 운영의 투명성과 감사 용이성을 위해 모든 자산은 다중서명(multisig) 스마트 컨트랙트에 보관됨.
커뮤니티 감독(dReps)과 위원회의 상호 견제 구조가 마련되어 있음.
이 제안은 카르다노 헌법 및 관련 규정을 준수함을 명시함.

## 주요 내용

### 기금 관리 구조

- **스마트 컨트랙트**가 기금의 모든 거래와 자산 이동을 자동화하여 관리함.
- **행정위원회**(9인)는 다중서명 정책(5/9)으로 자금 사용을 승인하며, 임기와 권한이 명확히 정의됨.
- **tDAO**(treasury DAO)는 dReps(등록된 대표자)로 구성되어 위원회의 행위를 감시·제재할 수 있음.
- 위원회는 자금을 DEX, lending protocol에 예치하거나, 제3자에게 송금해 유동화 및 스테이블코인 발행을 수행할 수 있음.
- 위원회는 구성원의 키를 제거(impeach)할 수 있으나, 새로운 구성원 추가는 tDAO의 선거를 통해서만 가능함.
- tDAO는 51% 과반수, 25% 정족수로 위원회의 행위를 중단하거나, 위원회 구성원을 선출·해임할 수 있음.

### 법적 구조

- 카르다노는 완전 분산화된 커뮤니티 거버넌스 기반의 트레저리를 보유한 최초의 블록체인임.
- 기금, 위원회, tDAO의 법적 책임과 권리를 보호하기 위해 별도 법인 설립을 검토 중임.
- 후보 관할지는 케이맨 제도, 영국령 버진아일랜드, 마셜 제도, 스위스, 미국(와이오밍 DUNA)임.
- 법적 구조 설립 계획과 비용은 1차 출금 요청에 포함될 예정임.
- 법적 구조는 2차 출금 전 반드시 완료되어야 함.
- 기금의 주요 목적은 카르다노 DeFi 생태계의 유동성 증대이며, 이자 수익의 85%는 재투자, 15%는 트레저리로 환원됨.
- 위원회는 투자 펀드가 아닌 공공의 이익을 위한 자산 관리자 역할임.

### 출금 및 예산

- **총 출금액**: 50M ₳
- **1차 출금(최대 500K ₳)**: 스마트 컨트랙트 구축(25K ₳), 개발 및 UI(200K ₳), 감사(75K ₳), 법무(200K ₳)
- **2차 출금(49.5M ₳)**: 에이다 유동화 및 스테이블코인 발행(500K ₳), 유동성 공급(49M ₳)
- 1차 출금 시 법적 구조 설립 계획, 개발·감사팀 선정, 비용 내역을 공개함.
- 2차 출금 전 법적 구조가 완료되어야 하며, 자금은 관리 컨트랙트로만 출금됨.
- OTC 데스크 등 제3자 선정은 공개 절차를 거치며, 유동성 공급 대상 프로토콜 선정도 공개 RFP로 진행됨.
- 남은 자금은 트레저리로 반환되며, 다음 출금에 포함될 수 있음.

### 임시 행정위원회 구성원

1. Linda Roland (CryptoFly)
2. Darren Camas (IPOR Labs)
3. Nick Schaub, Ph.D. (Elder Millenial)
4. Giorgio Zinetti (Cardano Foundation)
5. Massimo Morini, Ph.D.
6. Darlington Wleh (Lido Nation)
7. Murasaki (EMURGO)
8. Raphael Christian-Roy (Snek Foundation)
9. Ryan Davis (IOHK)

### 헌법성 및 거버넌스

- 이 제안은 카르다노 헌법 제3조(5항), 제4조(1~5항)를 충족함.
- 예산 집행 기간은 73 epoch(약 1년)임.
- 자산은 다중서명 스마트 컨트랙트에 보관되며, 커뮤니티 감사가 용이함.
- 자금은 SPO에 위임되지 않고, auto-abstain 투표 옵션에 위임됨.
- TREASURY-04a에 따라 예산 승인 후 출금 액션이 제출됨.

## 전문 용어 주석

- **스마트 컨트랙트**: 블록체인 상에서 사전 정의된 조건에 따라 자동 실행되는 프로그램임.
- **dReps(delegated Representatives)**: 커뮤니티에서 선출된 대표자로, tDAO의 투표권을 행사함.
- **tDAO(treasury DAO)**: 기금의 감독 및 거버넌스를 담당하는 탈중앙화 자율조직임.
- **DEX(Decentralized Exchange)**: 탈중앙화 거래소임.
- **OTC(Over-The-Counter)**: 장외 거래를 의미함.
- **multisig**: 다중서명, 여러 명의 서명이 필요함.
- **SPO(Stake Pool Operator)**: 카르다노 네트워크의 스테이크 풀 운영자임.
- **auto-abstain**: 투표권을 행사하지 않고 자동으로 기권하는 옵션임.
- **RFP(Request For Proposal)**: 제안 요청서임.
- **epoch**: 카르다노 블록체인의 시간 단위(약 5일).

The primary goal of this budget proposal is to increase liquidity on Cardano, specifically by supporting stablecoin liquidity. The secondary goal is to generate revenue for the treasury. 50,000,000 ADA is requested to create a fund composed of ADA and fiat backed stablecoins to support the Cardano decentralized finance (DeFi) ecosystem. The majority of the funds (99%) in this budget will be disbursed to DeFi protocols including decentralized exchanges (DEXs) and lending protocols to help seed liquidity on Cardano. Funds must only contain ADA, fiat backed stablecoins, and liquidity tokens from deployment into DeFi protocols. The funds will be managed from a smart contract administered by a 9 person interim committee composed of publicly identified individuals with oversight from a newly established treasury DAO (tDAO), where membership in the treasury DAO includes decentralized representatives (dReps). After 1 year, the tDAO will be required to elect a new committee or else no actions can be taken. The tDAO has the oversight abilities to impeach, elect, and ultimately shut down the fund and return funds to the treasury. In addition to the fund, this proposal will establish a number of public goods including a legal framework for future community involved proposals like this as well as an open source governance contract with executive and oversight functionality.

### Overview

* **Amount** 50 million ADA is requested for a budget period of 12 months. Up to 500,000 ADA will be used to establish a legal framework for the fund and create a smart contract with executive and oversight functions. The remaining 49.5 million ADA will be dedicated to funding Cardano DeFi protocols. Up to 35% of the fund will remain in ADA to pair with stablecoins on DEXs, and the remainder will be dedicated to minting stablecoins.
* **Administration** The fund will be administered in a smart contract with a 9 person committee that will require 5 signatures to spend funds. The tDAO (made up of a broad snapshot of dReps) will have oversight functions including the ability to impeach and elect committee members as well as temporarily or permanently prevent spend actions other than sending funds back to the treasury. The administrating committee will be responsible for working with 3rd party exchanges or trading desks to convert ADA to fiat backed stablecoins and then deploying to defi protocols (i.e. DEX and lending protocols).
* **Revenue** Funds deployed in DeFi protocols will earn revenue, and once a month 15% of revenue will be converted to ADA and sent back to the treasury while 85% will remain in protocols to continue growing. ADA held by the committee that is not deployed will not be staked according to constitutional requirements (see Rationale for more information).
* **Deployment** DeFi protocols may apply to be recipients of stablecoin liquidity, and the administrating committee will review and disburse funds to protocols that have the best plans for growth and returns back to the treasury. A maximum of 2 protocols may be used per DeFi category to minimize liquidity fragmentation. Applicants should make a strong case for the use of their protocol, including a a description of historical success, security, dedicated support for handling issues, a plan for attracting new liquidity, and features of the protocol that will maximize the value to the Cardano treasury if liquidity is deployed to the protocol. New protocols will not be excluded for having limited history, but must make a strong case in other areas of the application.
* **Audits and Transparency** The committee is responsible for creating a monthly report on the funds deployed to protocols and all fees and other costs associated with managing the treasury. All liquidity tokens must be held in the governing smart contract to permit public auditing of funds.
* **Costs** Each member of the committee will be compensated $1,000/month in ADA or the fiat backed stablecoin of their choice ($9,000/month total for all committee members). Compensation for committee members is for their time monitoring funds and the need to be available at any time to take action. The stablecoin reserve fund will cover the costs of minting fiat backed stables, deployment of liquidity to protocols, and rebalancing as needed. Intermittent costs of managing the fund including legal fees after initial legal setup (legal disputes, regulatory issues, etc), audits, KYB/KYC due diligence and other costs may be paid for by the fund. The committee will broadcast any unexpected costs to the community and detail it in the monthly report, and the tDAO may vote to shut down the fund if they deem costs to be excessive.
* **Lifetime & Revisions** The funds from this proposal are intended to remain in ownership of the Cardano community and managed by the committee. It is designed to live in perpetuity, but can be shut down at any time by the tDAO. The committee will follow the directive for the fund described in the Governance Protocol (see supplemental links), which focuses on stablecoins and growing liquidity.

### Why Does Cardano Need Stablecoin Liquidity?

There is a strong need for better liquidity, especially stablecoin liquidity, in the Cardano ecosystem. Deep stablecoin liquidity helps to serve as an on/off board mechanism for new users as well as a safe haven from market volatility. The Cardano community as a whole benefits from deep stablecoin liquidity, and thus it makes sense to bootstrap this liquidity with funds from the Cardano treasury. In addition to providing mechanisms to onboard new users, deeper liquidity in decentralized exchanges will help stablecoins keep their peg since the stablecoin peg is a function of exchange fees and slippage, where slippage is inversely proportional to liquidity. Put another way, the more liquidity a stablecoin has, the tighter it can maintain its peg.

As liquidity is bootstrapped, a positive feedback loop will be created, bringing more professional market makers on chain. We see this consistently in traditional finance and in other blockchain ecosystems. Market Makers are more willing to quote tighter spreads and provide more liquidity into an asset once there is sufficient liquidity in that asset. Liquidity begets liquidity. This will also spur more DeFi innovation, bring more developers and retail participation into the Cardano ecosystem, and benefit everyone involved in Cardano.

### Why Fiat Backed Stablecoins?

Stablecoins suffer from the 'stablecoin trilemma':

* **Stability** – maintaining a reliable and resilient peg.
* **Decentralization** – avoiding reliance on centralized entities.
* **Capital Efficiency** – minimizing overcollateralization or complex mechanisms to back the stablecoin’s value.

Fiat backed stablecoins tend to be capital efficient (1 USD invested in Treasury Bills, money market funds, banks backs 1 stablecoin) and stable. However, these tend to be more centralized than collateralized debt positions (CDP) backed stablecoins and algorithmic stablecoins. Given the desire to deepen on chain liquidity and create a thriving ecosystem, fiat backed stablecoins make the most sense from a capital efficiency standpoint (especially given their dominance in other thriving blockchain ecosystems).

### Consideration of ADA Price Impact

Treasury funds are in ADA, and must be liquidated to USD in order to mint fiat backed stablecoins. A valid concern with this proposal is the conversion of ADA to USD having a major price impact. It is important to remember that the full 50 million ADA will not be liquidated for stablecoins, since a portion (up to 35%) will need to remain as ADA to pair with stablecoins on DEXs. However, that still leaves a significant sum of ADA that needs to be liquidated for conversion to fiat backed stablecoins.

There are many mechanisms by which ADA can be liquidated, including direct sales to TradFi funds and OTC deals where ADA will never directly hit the open market to even have a price impact. Other methods include dollar cost averaging and other strategies to gently liquidate ADA so as not to induce a price shock. Even though the ADA liquidation will not be directly sold on an exchange, we want to include an analysis to show what the impact might look like if it were. Looking at only Coinbase ADA volume (the 4th largest ADA exchange by volume), for the last 3 months Coinbase has had an average daily volume of 30 million ADA. This means we could sell 500,000 ADA per day for 65 days to have all the liquidity needed for minting stablecoins, and this volume would represent 1.6% of the daily volume on the 4th largest ADA exchange. Spreading out sales of ADA combined with use of other CEXs (such as Binance, which has even higher daily volumes) would further reduce price impact. Thus, even not accounting for OTC deals and other mechanisms, the amounts of ADA being converted to USD make up a small fraction of daily CEX volume and thus should not have a major impact on ADA price.

### Key Performance Indicators (KPIs)

#### 50% Reduction in Stablecoin Slippage

The primary goal of this proposal is to increase the depth of stablecoin liquidity, and one measure of deeper liquidity on Cardano is reduced slippage. Since slippage is also tied to the size of the order, we use a $100,000 purchase as the benchmark (at $0.9 ADA price, enough to purchase ADA for an info action deposit). For USDM, the current slippage is 4% of USDM and 6% for USDA.

#### 4% Annual Returns to the Treasury

The primary motive of this project is to increase the depth of liquidity to the Cardano ecosystem, but revenue will naturally be generated from liquidity provision. We expect 4% returns back to the treasury based on the current market conditions for lending yields and DEX liquidity provision assuming a small increase in transaction volume. We believe based on analysis that an increase in volume will follow an increase in TVL since volume and TVL tend to be correlated, so 4% annual returns are a reasonable target.

### Public Goods

This proposal not only seeks to deploy treasury funds for the good of the Cardano blockchain and create a sustainable source of revenue, but will also create additional benefits for the ecosystem. In particular, the legal structure developed here will help to establish a framework for future proposals that seek similar structure that include executive actions from a committee or board with community oversight. Further, the development of the smart contract to functionally implement such a structure will be open sourced and openly available to the entire community to make use of.

### Administration

The fund will be administered by a smart contract with features defined in the Smart Contract document that can be found in the supplemental links. This section briefly describes the features and concepts, but the supplemental document fully defines the smart contract used to administer funds.

The smart contract used to administer funds will have two bodies: (1) a committee that performs executive functions and (2) a treasury decentralized autonomous organization (tDAO) composed of registered dReps that perform an oversight function.

Members of the administrating committee will have a start and end date for which their signatures will be valid. Funds in the smart contract can be used with a majority of signatures, and can be used for depositing liquidity into DEX and lending protocols or transferring funds to third parties for liquidation and stablecoin minting. Committee members may also remove or impeach other members (remove keys) to remove their ability to sign for the contract. This is a security mechanism, for example if signing keys are exposed. Committee members may not add new members, and if a member is removed then the only way to add them back is through tDAO election.

The tDAO performs oversight functions on the smart contract, holding the administrating committee accountable. They can vote to turn off administrating committee actions, preventing the committee from performing any action except returning funds back to the treasury. The tDAO can both remove and elect new committee members, where elections consist of adding a new key to the contract that is tied to a start and end date (defining the term of the committee members service). All tDAO actions require a 51% majority of dReps to vote, with a 25% quorum.

### Legal Structure

Cardano has been the leader in blockchain decentralization, and has the first and largest fully decentralized, community governed treasury. This requires legal structures to protect both the fund, dReps as members of the tDAO, and members of the committee. One or more legal entities will be created to support the fund. Legal structure is needed to give members of the committee and the tDAO standing and representation in court to protect and defend the funds. Legal structures to fully support the fund, the committee, and the tDAO will be proposed to the community and the final legal structure and costs will be included in the first withdrawal request. Jurisdictions under consideration are the Cayman Islands, British Virgin Islands, Marshall Islands and Switzerland. The United States may also be considered given the Wyoming decentralized unincorporated nonprofit association (DUNA).

It is important for legal reasons that the primary goal of the fund is to increase the depth of liquidity in the Cardano DeFi ecosystem, and the purpose of the committee is to manage treasury funds with oversight from dReps. The majority of any interest gained (85%) will be left in DeFi protocols to grow, with a small portion (15%) being sent back to the treasury. Thus, the committee is managing treasury assets for the public good of Cardano rather than operating an investment fund. This is analogous to the structures of other DAOs like Aave and Uniswap.

The legal structure will be clearly outlined and described in the first withdrawal action, with complete costs and timeline. The legal structure must be in place prior to the second withdrawal action. See the timeline section for more information on the withdrawal information.

### Withdrawals and Budget

#### Summary (Total Withdrawals 50,000,000 ADA)

Withdrawal 1 (500,000 ADA max)

* Amaru smart contract setup (25,000 ADA)
* Smart contract and UI development (200,000 ADA)
* Smart contract audit (75,000 ADA)
* Legal fees (200,000 ADA)

Withdrawal 2 (49,500,000 ADA)

* ADA liquidation and stablecoin mint cost (500,000 ADA)
* Liquidity deployment (49,000,000)

#### Withdrawal 1 Max 500,000 ADA

All fees are maximum estimates, and exact costs, providers, and implementation plans will be included in the first withdrawal action. If some costs are less than expected and others more expensive, costs for specific items will be adjusted but the total for the first withdrawal action will not total more than 500,000 ADA. Any amount less than 500,000 ADA will be passed to the second withdrawal action and used to deploy into DeFi protocols. If there are any funds remaining at the conclusion of work, they must be returned to the treasury and the residual amount may be included in the second withdrawal action.

The first withdrawal will be made to an Amaru contract setup to pay for smart contract development, auditing, and payment of legal fees. The Amaru team will be paid to setup and provide support for any issues that might arise for the duration of the work.

Either prior or after submission of the info action, RFPs will be sent to legal institutions for establishment of legal structures. The committee will evaluate initial responses and invite the best candidates to make final revisions that will be released for public comment and evaluation. The committee will review the merits of the final candidates along with public feedback to make a final decision that will be included in the first withdrawal. **The first withdrawal action must include the name of the institution, exact cost, and plan for establishment of legal structure for the treasury fund.**

Once this budget info action is approved, the committee will accept proposals for development of the smart contract and UI and proposals for smart contract auditors. It is possible for one team or organization to submit proposals for both smart contract development and auditing, but the same team cannot perform both development and auditing. Smart contracts and UI will be made fully open source, allowing similar initiatives to use the contracts. The specific development teams, implementation and coordination plan, and specific costs will be included in the first withdrawal action.

#### Withdrawal 2 49,500,000 ADA

The legal structure for the fund must be established prior to submission of this withdrawal. Withdrawal of funds must be made to the administrating contract.

On successful passing of Withdrawal 2, the committee will request proposals from OTC desks and other suitable institutions that can liquidate ADA for dollars and mint stablecoins. Institutions should handle both liquidation of ADA and minting stablecoins. The committee will make public the most promising candidates and fees to receive public feedback, and the institution selected by the committee MUST be included in the second withdrawal. Exact costs for liquidation and minting as well as timeline must be included in the proposal.

On successful passing of Withdrawal 1, the committee will publicly request proposals from DEX and lending protocols to receive funds. Specific proposal criteria will be included in the RFP, but will require information on commitment to DeFi ethos, yield projections, and plans for attracting additional liquidity. Details for how the committee should make selections are detailed in the Governance Protocol in the supplemental links. The selected protocols and exact amounts sent to each protocol MUST be included in the second withdrawal.

### People

Below are the 9 members of the interim administrating committee. They range in experience and background to help ensure the long term success and sustainability of the stablecoin liquidity. Additional info is included in the Interim Committee document in the supplemental links.

1. Linda Roland (aka CryptoFly)
2. Darren Camas (IPOR Labs)
3. Nick Schaub, Ph.D. (aka Elder Millenial)
4. Giorgio Zinetti (Cardano Foundation)
5. Massimo Morini, Ph.D.
6. Darlington Wleh (Lido Nation)
7. Murasaki (EMURGO)
8. Raphael Christian-Roy (Snek Foundation)
9. Ryan Davis (IOHK)

### Constitutionality of the Budget

**Purpose**: This proposal is for work intended to enhance the long term sustainability of Cardano by increasing stablecoin liquidity in the ecosystem.

**Article III(5)**: This proposal fulfills this section of the Cardano Constitution by containing a Title, Abstract, Reason for Proposal (Motivation and Rationale), and Supporting Materials. An off-chain copy of this proposal is linked to as the last element of the Supporting Materials section and is a Github link with commit hash thus fulfilling the other requirement of this section to have an off-chain copy with document hash. The Supporting Materials is not included in Github version of the document since it contains the commit hash.

**Article IV(1)**: We propose that this budget span 73 epochs (roughly 1 calendar year). This proposal does setup a framework for perpetual investment in Cardano, but the withdrawals must be completed within 1 year.

**Article IV(2)**: Disbursements for this budget must be made to a smart contract composed of 9 independent administrating members with at 5 of 9 signing policy for spending funds along with community oversight mechanisms from dReps. The process of overseeing funds then requires 5 of the 9 independent administrating members agree to disbursement of funds to DeFi protocols. The smart contract must be the owner of any liquidity deposited into DeFi protocols, meaning liquidity tokens or any other assurance of liquidity must be held in the multisig wallet and should not be delegated to a third party. With this design, the committee will be the administrator of the budget and will directly oversee distribution of funds to protocols, with dReps having and oversight function that permits shutting the fund down and returning back to the treasury.

**Article IV(3)**: At the time of submission, the NCL is currently at 350 million ADA and there are less than 300 million ADA in approved budgets. We believe that this removes a potential constitutional barrier for this proposal based on Article IV(3), since this proposal requests 50 million ADA.

**Article IV(4)**: We budget 275,000 ADA for construction of a smart contract and appropriate audits for the smart contract used to administer funds. The nature of the proposal requires liquidity to be held in the contract in order to make auditing by the community easy, since a single address will hold the total liquidity of the fund. Since the fund is designed to exist in perpetuity (with safeguards to shut down the fund through community action), specific budget to audit the fund are not specifically included but can be proposed and approved by the community and paid by the revenue of the fund.

**Article IV Section 5**: The nature of the proposed work fulfills the first requirement of Article IV(5) of the constitution. The holding of all assets in the smart contract composed of 9 independent signers improves the ability of the Cardano community to easily audit and track actions taken by the committee. To fulfill the second part of the section, funds will not be delegated to an SPO and will be delegated to the predefined auto-abstain voting option.

**TREASURY-04a**: There is no on chain withdrawal action for this budget, and one will not be submitted unless this budget achieves the necessary approval.