August 25th, 2025 Budget Comm Minutes
Attendees:
Name
Role
Rita
Voting Member
Lloyd Duhon
Budget Secretary
Shunsuke Murasaki
Former Voting Member, Mentor, Emurgo
Gerard Moroney
Board Member
Agenda 1.16.25
Finalizing 2025 Budget Processes and Lessons Learned: The committee discussed the status of contract finalization and the lessons learned from the initial smart contract rollout, emphasizing the need to properly document and act on these insights.
Planning for the 2026-2027 Budget Cycle: A major focus was placed on preparing a proposal for the board regarding the committee's plan for the upcoming years, including scrutiny of Intersect's own budget and a push to have a new process in place by September.
Operational and Administrative Improvements: The committee addressed ongoing administrative challenges, including moving forward with the audit process, managing member attendance, and discussing solutions for critical issues like ADA price volatility and the visibility of the Treasury Offset Mechanism.
Decisions/Actions
Topic
Discussion
Action Items
Attendance & Updates
Attendees: Murasaki, Rita Mistry, and Lloyd Duhon. Observer: Gerard Moroney. The committee lacked quorum due to a UK bank holiday. Lloyd Duhon provided updates on contract finalization and the budget committee survey, which has been extended until September 1st.
Lessons Learned from Smart Contracts
Gerard Moroney inquired about the visibility of improvements and lessons learned from the initial smart contract rollouts. He noted that crucial information, such as the need for the finance team to control wallets for milestone payments, was communicated via Slack, risking it being lost.
Lloyd Duhon to follow up with the dev team (Matt) to ensure all lessons learned from the initial smart contract contracts are properly documented and stored for future reference.
Treasury Offset Mechanism
Gerard Moroney highlighted the Treasury Offset Mechanism as a powerful piece of technology and suggested the committee consider how to make it more visible. He sees its proper integration with back-office processes as a potential utility for the broader ecosystem.
The committee to consider how to increase visibility and utility of the Treasury Offset Mechanism as a core function.
Vendor Payment & Volatility Risk
Shunsuke Murasaki raised concerns that the current smart contract hardcodes milestone payment dates, which could disadvantage vendors who deliver early. This approach also exposes vendors to ADA price volatility, potentially impacting their fiat-denominated budgets. The risk and reward are now primarily with the vendor.
The committee to revisit this issue and discuss solutions for managing ADA price volatility in future budget processes.
New MBOs and Open-Source Technology
Kristijan Kowalsski asked if other MBOs would be allowed to use Intersect's open-source budget process technology. Gerard Moroney and Lloyd Duhon agreed that since the source code is open-source, it would be against the spirit of the project to restrict it. Additionally, offering the delivery assurance team's services could be a revenue source for Intersect.
Committee's 2026-2027 Plan
Gerard Moroney requested that the committee present a proposal to the board on its plan for 2026-2027. He emphasized the need for a high-level plan, including engagement processes, improved communication, and milestones leading up to the next budget cycle. This proposal should be presented at the September board meeting.
The committee to prepare a high-level plan and proposal for the 2026-2027 budget cycle to present to the board in September.
Intersect Budget Scrutiny
Gerard Moroney suggested that the budget committee could serve as a counterbalance for the executive team by providing scrutiny and oversight of Intersect's own budget. He stressed the importance of transparency regarding Intersect's finances.
The committee to define its role in scrutinizing Intersect's own budget and processes for the upcoming year.
Audit Process Update
Lloyd Duhon updated the committee on the audit process, stating that a digital assets auditor CPA firm has been engaged. They have requested information from Intersect to provide a full quote. The goal is to have the auditor in place by the end of Q4.
Lloyd Duhon to work with Nick to provide the necessary information to the auditor for a full quote.
Budget Committee Meeting Attendance
There was a discussion about member participation and quorum. A formal process for members who miss more than four meetings has been established, potentially leading to resignation to ensure consistent attendance. Rita Mistry requested moving the weekly meeting from Wednesday to another day to accommodate her schedule.
Lloyd Duhon to send out a list of action items from today's meeting via email and Discord. <br> Lloyd Duhon to investigate moving the Wednesday meeting to Tuesday or Thursday to improve attendance.
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