Abstract
The Cardano Constitution, at Article IV, Section 3, requires that before withdrawal of Treasury funds, the community must have established a Net Change Limit (NCL). This means passing a NCL in a formal on-chain governance info action. The NCL represents the maximum amount of ada which may be withdrawn from the Cardano Treasury in a given period. It is a guardrail which, by definition in the Cardano Blockchain Ecosystem Constitution Definitions referenced below, protects the sustainability of the Cardano Treasury by preventing excessive withdrawals.
Motivations
No funds may be withdrawn from the Cardano Treasury without establishing a NCL. If the community wishes to use the Treasury to continue to maintain and grow the Cardano ecosystem it’s necessary to establish a NCL.