# 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?

{% hint style="info" %}

### 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.
{% endhint %}

* Covering treasury administration, contracting, payment execution, and reporting.
* Covering the requirements from Cardano Constitution by providing:
  * [Transparency and Reporting](/services/transparency-and-reporting-service.md) 
  * [Smart Contract Infrastructure](/services/smart-contract-infrastructure-service.md)
  * [Legal & Regulatory Ops](/services/legal-and-regulatory-ops-service.md)
  * [Vendor Support](/services/vendor-support-service.md)
* 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.](https://www.intersectmbo.org/news/intersect-administration-service-2026)

### 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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