Glossary · Governance

Treasury.

A pool of ada controlled by on-chain governance and funded by epoch rewards.

In depth

A small fraction of every epoch’s rewards is set aside in the Cardano treasury. Funds can only leave it through a treasury-withdrawal governance action that passes the DRep and Constitutional Committee thresholds. The treasury exists to fund public goods (development, audits, education) without relying on a foundation’s bank account.

Example

A community-funded research grant is paid out via a treasury withdrawal governance action.

Next on this path

  1. Governance action A formal on-chain proposal that, if ratified, changes protocol parameters, the constitution, or the treasury.
  2. Staking rewards Ada paid out to delegators and pool operators for producing blocks.