Administration Fee Framework for Intersect's 2026 Budget Process
Overview
From 2026, Intersect is introducing a 3% administration fee applied to treasury withdrawals that we administer. This change ensures the administration service can operate sustainably, responsively, and proportionate to the ecosystem’s needs.
Why we are changing the model
In 2025, administration was funded through a flat‑rate budget allocation. While workable, this approach had several limitations:
It assumed a fixed scope of work over a fixed period, which meant the service was tied to a single annual budget cycle and limited our ability to support a broader range of proposals.
We supported Snek and became the execution arm for the critical integrations workstream, however we could not reliably plan for our business activities.
It created uncertainty for Vendors planning their own operations, as capacity was only guaranteed during a fixed budget cycle.
Approvals clustered around a narrow period, creating operational bottlenecks.
This model restricted flexibility and did not reflect the dynamic nature of the Cardano ecosystem.
A more sustainable approach for 2026
To better support a growing and evolving ecosystem, we are moving to a 3% administration fee applied to treasury withdrawals.
This model:
Ensures the service is always available
Administration becomes an always‑on function rather than tied to a single budget cycle. If demand increases, capacity scales. If demand decreases, cost to the ecosystem decreases.
Aligns cost with value
The community pays for administration in proportion to the work being delivered. There is no need to pre‑fund a fixed overhead or manage surplus if fewer initiatives come through.
What the administration fee supports
This fee enables us to provide the operational infrastructure required to support funded projects, including:
Milestone oversight and verification
Third-party technical spot reviews (new for 2026)
Vendor coordination and support
Transparent reporting and communications
Maintenance of dashboards and tracking tools
Continuous improvement initiatives
Procurement, contracting, and smart contract disbursement
This ensures a consistent, reliable service for individuals, teams, and organisations across the ecosystem.
As a result of this change, we’re able to hone in on Intersect’s core services, namely our role in stewarding and coordinating the Haskell node and maintaining a member-based organization.
What's included in the 3% charge?
How will the charge be applied?
If Intersect is selected as an administrator in the Hydra-Voting tooling, the 3% fee will be added on top of the proposal's budget.
Covering treasury administration, contracting, payment execution, and reporting.
Covering the requirements from Cardano Constitution by providing:
Complementary Intersect Enterprise Membership for the first year (Vendors are required to maintain a good standing membership throughout their contract duration).
More details in the related blog here.
What value have these services delivered so far?
Since the launch of the administration function, Intersect has helped establish a structured and transparent approach to managing funded work.
In 2025, the administration service has delivered several key outcomes:
No additional operational costs to vendors, keeping participation accessible across the ecosystem
>325M ADA of Treasury funds administered
45 funded projects across multiple initiatives
Milestones monitored and verified throughout project lifecycles
Quality assurance and oversight, ensuring milestone deliverables meet the expectations set out in approved proposals
Transparent reporting and communications, keeping the community informed about progress and outcomes.
These efforts help ensure that funding decisions made through governance are supported by clear oversight, verification, and accountability.
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