Cardano has released a draft of its 2027 Ecosystem Budget Process (CEBP), outlining a new governance structure for allocating treasury funds. The proposal, published by Intersect on October 28, assigns stewardship responsibilities to three institutions – Intersect, PRAGMA and the Cardano Foundation – across six spending domains.
Steward roles and DRep oversight
Each steward would help shape strategy, set a dollar‑denominated budget cap, and define how funding applications are collected and evaluated within its domain. Stewards could submit proposals directly or support external applicants, but all final funding decisions would remain with delegated representatives (DReps). DReps would also retain approval authority for the stewards themselves, the overall budget distribution, and each treasury withdrawal.
Open Contributions pathway
A seventh domain, called Open Contributions, would have no steward and would allow any applicant to approach DReps directly. The draft does not specify the allocation size for this route or the exact procedures for assessing steward‑related funding, leaving those details to be defined later.
Conflict‑of‑interest safeguards
The framework permits a steward to receive funding from its own domain provided the award is transparently declared and subject to DRep approval. Existing governance mechanisms – such as Intersect’s Growth & Marketing Committee conflict‑disclosure rules and the Budget Committee grievance process – would continue to apply, though the draft does not detail new recusal or appeals procedures for steward‑involved proposals.
Implementation timeline and voting thresholds
Intersect plans a tentative submission of the concept on November 10, seeking at least 51% DRep support for the overall proposal and at least 60% support for each steward’s mandate. If approved, the process would run as a trial in 2027, with further domain‑specific actions expected in December 2026 or January 2027.
Implications for applicants
Applicants will need to understand the budget caps for each domain and the assessment criteria, especially when a steward also seeks funding. While DReps retain final approval authority, the proposed code of conduct and the size of the Open Contributions pool could affect the range of options available to independent projects.
