DReps approve spending, while recipients and administrators answer for funded work that ADA holders can trace through public reports.

Cardano founder Charles Hoskinson said around 28 minutes into his Nov. 7 AMA that he did not control Cardano's treasury or consensus and could not negotiate on behalf of all ADA holders. His argument that he cannot act as the ecosystem's CEO puts a practical question back before holders: who answers for the work meant to grow Cardano?

The answer depends on the decision. Delegated representatives, or DReps, approve treasury spending, the Constitutional Committee checks constitutionality, and funded recipients deliver under the terms of their proposals. Named administrators must monitor fund use and ensure deliverables are achieved. Cardano's treasury guidance explicitly separates approval from reporting on payouts and results.

Anyone can propose a treasury withdrawal. It needs DRep and Constitutional Committee approval, must comply with the Constitution and must remain within the applicable Net Change Limit, the cap on how much ADA can leave the treasury during a period.

Those roles answer different questions. DReps decide whether to support funding. The committee's mandate is limited to constitutionality; it must operate transparently and publish its decisions.

The Constitution's treasury standards require proposals to state their purpose, delivery period, costs and refund circumstances, and disclose whether the prospective recipient received treasury ADA in the previous 24 months.

Funding requests must also allocate ADA for periodic independent audits and oversight metrics, and designate administrators responsible for monitoring spending and ensuring delivery. While an administrator holds withdrawn funds before disbursement, they must remain in separate accounts the community can audit, with the Constitution's restrictions on delegation.

Source link