## **INTRODUCTION**


You can also read the Delegate Endorsed Cardano Constitution [here](https://github.com/IntersectMBO/draft-constitution/tree/main/2024-12-05).

This document presents the Cardano Blockchain Ecosystem Constitution, endorsed by an overwhelming majority of delegates (95%) during the Constitutional Convention. It will be formally submitted as an "update constitution governance action" to replace the current interim constitution, pending approval by Delegated Representatives (DReps) and the Interim Constitutional Committee (ICC).

INTRODUCTION

## **PREAMBLE** 

Cardano is a decentralized ecosystem of blockchain technology, smart contracts, and community governance, committed to improving economic, political, and social systems for everyone, everywhere. By offering this foundational infrastructure, Cardano empowers individuals and communities to manage their identity, value and governance, fostering the emergence of decentralized applications, businesses and network states.

Through unbiased processing of immutable data, we, the participants of the Cardano Community, consisting of individuals, organizations, contributors and others, choose to follow in the footsteps of the early Internet and cryptocurrency pioneers, who first forged bonds of community through digital technologies. We are guided by our shared principles and tenets as we exercise our self-governance by balancing decentralized decision-making with accountability and safeguarding the security of the Cardano Blockchain.

Recognizing the need for a more robust and dynamic governance framework, that neither relies nor depends upon traditional nation-state governance systems, but instead relies on self-governance by the Cardano Community, utilizing, wherever possible and beneficial, blockchain technology in the governance process, we hereby establish this Cardano Constitution to govern the Cardano Blockchain ecosystem, ensure the continuity of the Cardano Blockchain, and guard the rights of those who utilize it.

With these purposes in mind, we, the Cardano Community, affirm our intention to abide by this Constitution in order to participate in the governance of the Cardano Blockchain ecosystem. We invite all who share our values to join us but stand not in the way of any who wish to take another path.

PREAMBLE

## **ARTICLE I. CARDANO BLOCKCHAIN TENETS AND GUARDRAILS**

**Section 1**

These below Tenets shall guide all participants of the Cardano Community, including the Constitutional Committee, and proposed governance actions shall be evaluated in accordance with these Tenets. The order in which the below Tenets appear is not intended to represent a priority among Tenets.

**TENET 1** Transactions on the Cardano Blockchain shall not be slowed down or censored and shall be expediently served for their intended purpose.

**TENET 2** The cost of transactions on the Cardano Blockchain shall be predictable and not unreasonable.

**TENET 3** Anyone desiring to develop and deploy applications on the Cardano Blockchain shall not unreasonably be prevented from developing and deploying such applications as intended.

**TENET 4** Contributions by the Cardano Community on the Cardano Blockchain shall be recognized, recorded and assessed fairly through reward sharing with SPOs, potential compensation to DReps and CC members, and appropriate tokenomics.

**TENET 5** The Cardano Blockchain shall not lock in an ada owner's value or data without the owner's consent.

**TENET 6** The Cardano Blockchain shall not unreasonably impede interoperability.

**TENET 7** The Cardano Blockchain shall preserve in a safe manner any value and information stored on the Cardano Blockchain.

**TENET 8** The Cardano Blockchain shall not unreasonably spend resources.

**TENET 9** All users of the Cardano Blockchain shall be treated fairly and impartially, taking into account the collective desires of the Cardano Blockchain Community, consistent with the long-term sustainability and viability of the Cardano Blockchain.

**TENET 10** Financial stability shall be maintained and the total supply of ada shall not exceed 45,000,000,000 (45,000,000,000,000,000 lovelace).

**Section 2**

The Cardano Blockchain shall operate in accordance with the Guardrails for the Cardano Blockchain as set forth in the Cardano Blockchain Guardrails Appendix to this Constitution. The Cardano Community may from time to time digitally codify certain Guardrails such that the Guardrails are directly programmed and implemented on the Cardano Blockchain using on-chain Guardrails Scripts or built-in ledger rules.

In the event there are inconsistencies between a Guardrail as set forth in the Cardano Blockchain Guardrails Appendix and any such Guardrail that has been programmed and implemented on the Cardano Blockchain, the version of such Guardrail that has been deployed directly on the Cardano Blockchain shall prevail unless and until replaced or revised pursuant to an on-chain governance action. The Constitutional Committee shall seek to reconcile such inconsistencies through the encouragement of an appropriate on-chain governance action.

ARTICLE I. CARDANO BLOCKCHAIN TENETS AND GUARDRAILS

## **ARTICLE II. THE CARDANO BLOCKCHAIN COMMUNITY**

**Section 1**

No formal membership shall be required to use, participate in and benefit from the Cardano Blockchain. Instead, all owners of ada, all developers of, all those building on, and all those otherwise supporting, maintaining or using the Cardano Blockchain are considered to be participants in the Cardano Community and are therefore recognized as beneficiaries of the Cardano Blockchain ecosystem. All participants in the Cardano Community are accordingly beneficiaries of this Constitution, entitled to its rights, privileges and protections and, as such, are expected to support and uphold this Constitution.

**Section 2**

Participants in the Cardano Community who own ada are entitled to access and participate in the on-chain decision-making processes of the Cardano Blockchain ecosystem, including voting and taking part in on-chain governance actions regarding the Cardano Blockchain.

**Section 3**

The Cardano Community has a responsibility to maintain the integrity of the Cardano Blockchain ecosystem by following this Constitution, operating the Cardano Blockchain, participating in Cardano Blockchain governance activities, and resolving disputes in a fair and transparent manner.

**Section 4**

The Cardano Community is entitled and encouraged through the provisions of this Constitution to collaborate in developing, maintaining and building applications for the Cardano Blockchain, and to form temporary and permanent organizations, associations and other entities as the Cardano Community deems desirable or appropriate in support of the Cardano Blockchain ecosystem.

ARTICLE II. THE CARDANO BLOCKCHAIN COMMUNITY

## **ARTICLE III. PARTICIPATORY AND DECENTRALIZED GOVERNANCE**

**Section 1**

The Cardano Blockchain shall be governed by a decentralized, on-chain governance model, utilizing, to the extent possible and beneficial, smart contracts and other blockchain based tools to facilitate decision-making and ensure transparency. On-chain voting for governance actions shall follow the process outlined in this Constitution, including the Cardano Blockchain Guardrails Appendix. On-chain governance actions shall be effected through a collective decision-making process, with specific consensus threshold requirements, as required by the Cardano Blockchain Guardrails.

**Section 2**

Three independent governance bodies shall participate in voting for on-chain governance actions to provide checks and balances for the Cardano Blockchain, consisting of Delegated Representatives (DReps), Stake Pool Operators (SPOs) and the Constitutional Committee (CC).

**Section 3**

All owners of ada shall have the right to vote in on-chain governance decision-making processes, as provided for in this Constitution and the Cardano Blockchain Guardrails Appendix. All owners of ada shall have the right to propose changes to the governance structure of the Cardano Blockchain ecosystem in accordance with the Guardrails. Owners of ada who use third-party custodians or other designees to hold their ada, may authorize or may withhold authorization for, such third-parties to vote on their behalf.

**Section 4**

A special form of on-chain governance action, an "Info" action, exists to allow the Cardano Community to propose potential future on-chain governance actions and to allow community sentiment to be gauged without committing to any on-chain change to the Cardano Blockchain. Such "Info" actions have no on-chain effect other than to record such "Info" actions on the Cardano Blockchain. In accordance with Article VII Section 4, "Info" actions shall also be used in connection with proposed Cardano Blockchain ecosystem budgets and Cardano Blockchain treasury withdrawals.

**Section 5**

In order to promote transparency in the process of on-chain governance, prior to being recorded or enacted on-chain, all proposed governance actions are expected to follow a standardized and legible format including a URL and hash of all documented off-chain content to the Cardano Blockchain. Sufficient rationale shall be provided to justify the requested change to the Cardano Blockchain. The rationale shall include, at a minimum, a title, abstract, reason for the proposal, and relevant supporting materials.

The content of every on-chain governance action must be identical to the final off-chain version of the proposed action.

"Hard Fork Initiation" and "Protocol Parameter Change" governance actions shall undergo sufficient technical review and scrutiny as mandated by the Guardrails to ensure that the governance action does not endanger the security, functionality, performance or long-term sustainability of the Cardano Blockchain. On-chain governance actions should address their expected impact on the Cardano Blockchain ecosystem.

All owners of ada shall have the right to ensure that the process for participating in, submitting and voting on on-chain governance actions is open and transparent and is protected from undue influence and manipulation.

**Section 6**

The Cardano Community is expected to support the creation, maintenance and ongoing administration of off-chain governance processes as may be necessary to give effect to this Constitution and to ensure that there is awareness of and an opportunity to debate and shape all future governance actions for the Cardano Blockchain.

ARTICLE III. PARTICIPATORY AND DECENTRALIZED GOVERNANCE

## **ARTICLE IV. THE CARDANO BLOCKCHAIN ECOSYSTEM BUDGET**

**Section 1**

Any participant in the Cardano Community may propose a Cardano Blockchain ecosystem budget at any time. The Cardano Community is expected to periodically propose one or more budgets for the ongoing operation, maintenance and future development of the Cardano Blockchain ecosystem and for covering other costs related to the implementation, administration and maintenance of the decentralized, on-chain governance processes provided for in this Constitution. The Cardano Community may propose one aggregate budget or multiple budgets for the Cardano Blockchain ecosystem. Such budgets are expected to cover not less than a period of 73 epochs (approximately one calendar year) but nothing shall prevent the Cardano Community from proposing budgets for shorter or longer time periods. All owners of ada are expected to periodically approve one or more Cardano Blockchain ecosystem budgets through an on-chain "Info" action. As provided in Section 3 of this Article IV, withdrawals may be made from the Cardano Blockchain treasury as necessary from time to time to give effect to the Cardano Blockchain ecosystem budget or budgets then in effect. Existing budgets may be amended following the same process as provided in this Section 1.

**Section 2**

Development of Cardano Blockchain ecosystem budgets and the administration of such budgets shall utilize, to the extent possible and beneficial, smart contracts and other blockchain based tools to facilitate decision-making and ensure transparency. Cardano Blockchain budgets shall specify a process for overseeing use of funds from Cardano Blockchain treasury withdrawals including designating one or more administrators who shall be responsible for such oversight.

**Section 3**

Withdrawals from the Cardano Blockchain treasury that would cause the Cardano Blockchain treasury balance to violate the then applicable net change limit shall not be permitted. No withdrawals from the Cardano Blockchain treasury shall be permitted unless such withdrawals have been authorized and are being made pursuant to a budget for the Cardano Blockchain that is then in effect as required by the Cardano Blockchain Guardrails Appendix, and which has not been determined by the Constitutional Committee to be unconstitutional.

**Section 4**

Any governance action requesting ada from the Cardano Blockchain treasury shall require an allocation of ada as a part of such funding request to cover the cost of periodic independent audits and the implementation of oversight metrics as to the use of such ada. Contractual obligations governing the use of ada received from the Cardano Blockchain treasury pursuant to a Cardano Blockchain ecosystem budget shall include dispute resolution provisions.

**Section 5**

Any ada received from a Cardano Blockchain treasury withdrawal, so long as such ada is being held directly or indirectly by an administrator prior to further disbursement, must be kept in one or more separate accounts that can be audited by the Cardano Community, and such accounts shall not be delegated to an SPO but must be delegated to the predefined auto abstain voting option.

ARTICLE IV. THE CARDANO BLOCKCHAIN ECOSYSTEM BUDGET

## **ARTICLE V. DELEGATED REPRESENTATIVES**

**Section 1**

In order to participate in governance actions, owners of ada may register as DReps and directly vote on such governance actions or may delegate their voting rights to other registered DReps who shall vote on their behalf.

**Section 2**

Any owner of ada shall have the option to register as a DRep. Owners of ada shall be allowed to delegate their voting stake to one or more registered DReps, including themselves. DReps may be individuals or coordinated groups. Owners of ada who use third-party custodians or other designees to hold their ada, may authorize, or may withhold authorization for, such third-parties to delegate the voting rights of the ada owner to registered DReps on the owner's behalf. DReps are entitled to cast votes directly for on-chain governance actions and represent those ada owners delegating their voting rights to them. DRep voting thresholds are set forth in the Cardano Blockchain Guardrails Appendix.

This voting system shall enshrine a liquid democracy model where owners of ada can seamlessly select among DReps, register as a DRep, and withdraw or change their delegation at any time.

**Section 3**

DReps who are representing delegators are expected to periodically adopt, and update as they deem appropriate, codes of conduct governing their activities as DReps and make such codes of conduct publicly available. DReps are encouraged to include ethical guidelines in their codes of conduct.

**Section 4**

The Cardano Community is expected to support the creation, maintenance and ongoing administration of tools to enable owners of ada to explore and evaluate DRep candidates, access and evaluate DRep codes of conduct and select DReps on such criteria as they deem relevant.

**Section 5**

DReps who are representing delegators may be compensated for their efforts. DReps shall ensure that any compensation received in connection with their activities as a DRep is disclosed.

**Section 6**

DReps shall not pay compensation to an ada owner or to an owner's designee in exchange for being appointed a DRep by such ada owner or by its designee or for voting on behalf of such ada owner or its designee.

ARTICLE V. DELEGATED REPRESENTATIVES

## **ARTICLE VI. STAKE POOL OPERATORS**

**Section 1**

SPOs shall have a specific role in approving critical on-chain governance actions that require additional oversight and independence, voting separately and independently from DReps as set forth in the Cardano Blockchain Guardrails Appendix. SPOs shall participate in hard fork initiation processes as the operators of the nodes that participate in Cardano Blockchain's consensus mechanism.

**Section 2**

SPOs shall act as a check on the power of the Constitutional Committee under exceptional circumstances by separately voting on "Motion of no confidence" and "Update committee/threshold and/or term" governance actions, and on "Parameter Update" governance actions that affect security-critical parameters set forth under Parameters that are Critical to the Operation of the Blockchain in Section 2.1 of the Cardano Blockchain Guardrails Appendix.

**Section 3**

SPOs are encouraged to periodically adopt, and update as they deem appropriate, codes of conduct governing their activities as SPOs and make such codes of conduct publicly available. SPOs are encouraged to include ethical guidelines in their codes of conduct.

**Section 4**

Owners of ada who are both SPOs and acting as DReps shall publicly disclose that they are participating in on-chain governance actions in both such capacities prior to exercising any on-chain governance rights.

ARTICLE VI. STAKE POOL OPERATORS

## **ARTICLE VII. CONSTITUTIONAL COMMITTEE**

**Section 1**

A Constitutional Committee shall be established as the branch of Cardano's on-chain governance process that ensures governance actions to be enacted on-chain are consistent with this Constitution. The Constitutional Committee shall comprise a set of owners of ada that is collectively responsible for ensuring that on-chain governance actions prior to enactment on-chain, are constitutional. Except as otherwise provided in Section 4 of this Article VII, the Constitutional Committee shall be limited to voting on the constitutionality of governance actions to be enacted on-chain. Constitutional Committee members are expected to have appropriate expertise to carry out their required responsibilities, considering their past contributions and involvement in the Cardano Blockchain ecosystem.

**Section 2**

The Constitutional Committee shall be composed of such number of members sufficient to assure the ongoing integrity of the Cardano Blockchain as determined from time to time by owners of ada. The minimum and maximum number of members of the Constitutional Committee shall be consistent with the minimum and maximum number of members as set forth in the Cardano Blockchain Guardrails Appendix.

Members of the Constitutional Committee shall serve such term lengths as shall be determined from time to time by owners of ada as consistent with the minimum and maximum term lengths as set forth in the Cardano Blockchain Guardrails Appendix. To assure continuity in the operation of the Constitutional Committee, the terms for Constitutional Committee members shall be staggered.

**Section 3**

The Cardano Community shall establish and make public a process from time to time for election of members of the Constitutional Committee consistent with the requirements of the Guardrails.

**Section 4**

No governance action, other than a "Motion of no confidence," or "Update Constitutional Committee/threshold and/or term" may be implemented on-chain unless a requisite percentage of the members of the Constitutional Committee as specified by the Guardrails shall have first determined and affirmed through an on-chain action that such proposal does not violate this Constitution. Each Constitutional Committee member shall have one vote.

Because "Info" actions have no on-chain effect and, accordingly, are neither constitutional nor unconstitutional, Constitutional Committee members may not prevent "Info" actions from being recorded on-chain. Members of the Constitutional Committee may nevertheless record a vote on-chain regarding an "Info" action in order to express their view on such "Info" action, including whether the suggested course of action proposed in such "Info" action, would be, in the view of such member, unconstitutional if it were to be enforced by on-chain mechanisms.

In the case of "Info" actions that propose a Cardano Blockchain ecosystem budget, Constitutional Committee members shall record a vote on-chain that sets forth their opinion as to whether the proposed budget, if it were to be implemented in the form contained in the "Info" action, would violate this Constitution.

In the case of "Info" actions that propose a withdrawal from the Cardano Blockchain treasury pursuant to a previously approved budget, Constitutional Committee members shall record a vote on-chain that sets forth their opinion as to whether such proposed withdrawal, if made in accordance with such "Info" action, would violate this Constitution.

**Section 5**

The Constitutional Committee shall be considered to be in one of the following two states at all times: a state of confidence or a state of no-confidence. In a state of no-confidence, members of the then standing Constitutional Committee must be reinstated or replaced using the "Update committee/threshold" governance action before any other on-chain governance action, other than "Info" actions, may go forward. During a state of no-confidence, "Info" actions other than "Info" actions relating to budget proposals or treasury withdrawal proposals, may continue to be recorded on-chain.

If a member of the Constitutional Committee is not carrying out its responsibilities as required by this Constitution, as so determined by a requisite percentage as specified by the Guardrails of SPOs and DReps, voting separately pursuant to an "Update Constitutional Committee/threshold and/or term" governance action, such member shall be removed from the Constitutional Committee upon the implementation of the governance action. Thereafter, an election shall be held as soon as practical to replace the member so removed.

In the event of a "Motion of no confidence" governance action to remove all members of the Constitutional Committee at the same time, that is approved by a requisite percentage as specified by the Guardrails of DReps and SPOs, upon implementation of the governance action, the Constitutional Committee shall be considered to be a state of no-confidence until such time as an election has been held either to reinstate the existing Constitutional Committee members in whole or in part, or to elect new Constitutional Committee members.

**Section 6**

Constitutional Committee processes shall be transparent. The Constitutional Committee shall publish each decision. When voting that a governance action proposed to be executed on-chain is unconstitutional, the Constitutional Committee collectively, or each member of the Constitutional Committee casting such a vote separately, shall set forth the basis for its decision with reference to specific Articles of this Constitution or provisions of the Cardano Blockchain Guardrails Appendix that are in conflict with a given proposal. Internal deliberations among members of the Constitutional Committee, prior to casting votes, are not required to be publicly disclosed.

The Constitutional Committee shall operate pursuant to a code of conduct periodically adopted and published by the Constitutional Committee. The Constitutional Committee is encouraged to include ethical guidelines in its code of conduct. The Constitutional Committee shall periodically adopt and publish such policies and procedures as the Constitutional Committee shall deem necessary in carrying out its duties.

**Section 7**

The Cardano Community is expected to support the creation, maintenance and ongoing administration of tools as may be necessary and appropriate for the Constitutional Committee to perform its required functions.

**Section 8**

Constitutional Committee members may be compensated for their efforts as members of the Constitutional Committee. Constitutional Committee members shall ensure that any compensation received in connection with their activities as a member is disclosed. Budgets approved for the Cardano Blockchain ecosystem may include allocations from the Cardano Blockchain treasury sufficient to compensate Constitutional Committee members in such amounts as may be approved from time to time by ada owners. Cardano Blockchain ecosystem budgets shall provide for periodic administrative costs of the Constitutional Committee in such amounts as requested from time to time by the Constitutional Committee and as approved by ada owners.

**Section 9**

Constitutional Committee members who are also acting as DReps, as SPOs, or both, shall publicly disclose that they are participating in on-chain governance actions in more than one such capacity prior to voting with respect to on-chain governance actions.



ARTICLE VII. CONSTITUTIONAL COMMITTEE

## **ARTICLE VIII. AMENDMENT PROCESS**

**Section 1**

This Constitution should be treated as a living document. Technical advancements, changes in the desires, needs and expectations of the Cardano Community, and unforeseen circumstances may give rise to the need in the future to amend this Constitution. The Cardano Community is encouraged to periodically review and debate its provisions, and when so desired, come together in such forums as the Cardano Community may deem appropriate, to propose amendments to this Constitution. Amendments may be made as provided in this Article VIII.

**Section 2**

Except as otherwise so provided in the Cardano Blockchain Guardrails Appendix, amendments to this Constitution, including to the Cardano Blockchain Guardrails Appendix, shall be approved by a collective decision-making process, requiring an on-chain governance action by owners of ada satisfying a threshold of no less than 65% of the then active voting stake.

**Section 3**

If the Cardano Blockchain Guardrails Appendix sets forth an amendment threshold for a Guardrail that is different than the amendment threshold contained in Section 2 of this Article VIII, then the threshold set forth in the Cardano Blockchain Guardrails Appendix for such Guardrail shall apply.

ARTICLE VIII. AMENDMENT PROCESS

APPENDIX I: CARDANO BLOCKCHAIN GUARDRAILS

## **APPENDIX II: SUPPORTING GUIDANCE**

This Appendix II is intended to provide guidance in interpreting the Constitution and the Constitutional Committee shall consider this Appendix II as it deems relevant and useful in carrying out its constitutional duties.

**1 . Framing Notes**

The Cardano Blockchain was established in 2017. In July 2020 the Cardano Blockchain was expanded to include independent block validators and in September 2024 an on-chain governance system was introduced. This Constitution outlines the rights and responsibilities of governance actors in the decentralized system who represent the owners of ada, the governance token of the Cardano Blockchain. The Cardano Blockchain is presently a decentralized ecosystem of blockchain technology, smart contracts, and community governance.

In approaching this Constitution, the Cardano Community recognizes that it must be remembered that this is not a constitution for only a blockchain but rather a constitution for a blockchain ecosystem – a much more ambitious endeavor. Accordingly, how governance actions are approved, while extremely important, is not the sole focus of this Constitution. Rather, this Constitution provides the basis and fundamental framework through which all participants in the Cardano Community can come together to govern themselves and form radically new approaches to human interaction and collaboration.

By necessity, this Constitution recognizes the role of and empowers the Constitutional Committee, confirms the right of the Cardano Community to participate in collective bodies for collaboration, gives effect to on-chain governance, and empowers DReps to act as the voice of ada owners for on-chain voting.

The Constitution also recognizes the necessity of safeguarding access to and the use of funds of the Cardano Blockchain treasury through the inclusion of the Cardano Blockchain Guardrails in this Constitution.

**2 . Other Guidance**

The drafters of the Constitution, together with other participants from the Cardano Community, have published and in the future may publish guidance for interpreting the Constitution, including, without limitation, a definition booklet that has been released contemporaneously with the on-chain ratification of the Constitution. So long as any such published guidance has been hashed to the Cardano Blockchain pursuant to an "Info" action, the Constitutional Committee shall not be precluded from considering and utilizing such guidance as it deems appropriate.// Some code



**[Cardano Blockchain Ecosystem Constitution - Delegate Approved.pdf](https://844111662-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fo50OuflyxfUMOt8hHPn2%2Fuploads%2FY5JAYYcmZd1BRKE1tJVl%2FCardano%20Blockchain%20Ecosystem%20Constitution%20-%20Delegate%20Approved.pdf?alt=media&token=9dffb61b-0074-45e1-bbfd-59ab7d5e92fb)**

For a rendered markdown view, you can see;

[IntersectMBO/draft-constitution/draft-constitution.md](https://github.com/IntersectMBO/draft-constitution/blob/main/2024-12-05/draft-constitution-converted.md)

In January 2025, following the Plomin upgrade, Intersect will submit a Constitutional Amendment governance action for the wider Cadano community to ratify. 

APPENDIX II: SUPPORTING GUIDANCE

CARDANO BLOCKCHAIN ECOSYSTEM CONSTITUTION

This document presents the Cardano Blockchain Ecosystem Constitution, endorsed by an overwhelming majority of delegates (95%) during the Constitutional Convention. It will be formally submitted as an "update constitution governance action" to replace the current interim constitution, pending approval by Delegated Representatives (DReps) and the Interim Constitutional Committee (ICC).

Delegate Endorsed Cardano Constitution

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