Title
Decrease Treasury Tax from 20% to 10%
Abstract
This governance proposal seeks to reduce the treasury cut from 20% to 10% to enhance staking incentives, improve decentralization, and align economic sustainability with the Cardano ecosystem's long term growth. The adjustment aims to optimize staking rewards without compromising the financial health of the treasury, ensuring a balanced economic model that incentivizes participation and network security.
Motivations
The initial 20% treasury cut was set arbitrarily at the launch of Shelley and has never been reassessed. With Cardano's ecosystem maturing and a more structured governance framework in place, it is now possible to refine economic parameters to better align with network incentives. A lower treasury cut increases staking rewards, encourages broader participation, and strengthens security while maintaining a sustainable treasury. This adjustment ensures that governance decisions support long term ecosystem growth.