Mar 14, 2024

The Parameter Committee (interim state) meets on a tri-weekly basis. It discusses all parameters relating to the Cardano protocol including network, technical, economic and governance parameters, providing technical advice and recommendations on updatable parameter settings.

Updated list of the Members (interim state):

Chairs: Chair: Kevin Hammond Vice- chair: Alex Moser Vice- chair: Vijay Bhuvangiri

Advisory Group Heads: Network group: Neil Davies Technical group: Markus Gufler Economic group: Samuel Leathers Governance group: Adam Rusch

Advisory Group Members: Network group: Karl Knutson, Matthias Sieber, Marcin Szamotulski Technical group: Ruslan Dudin, Michael Peyton Jones, Ashish Prajapati Economic group: Sergio Sanchez, Philip Lazos, Giovanni Gargiulo, Sheng-Nan Li Governance group: Oscar West, Riley Kilgore, Nicolas Cerny

Other: Communications: Tommy Kammerer, Matthew Capps Domain experts: Martin Lang, Andrew Westberg Observers: Secretary: Joaquín López

Remit

The purpose of the Parameter Committee is to provide technical advice and recommendations relating to the updatable protocol parameters, taking into account economic, security, network and other technical considerations, as appropriate to protect the long term sustainability of the Cardano blockchain.

Agenda and Updates:

Agenda

• Report on initial parameter settings

• PCP002 - final recommendation

• Update on PCP-003

• Update on Parameter Guardrails

• Any Other Business

Updates

• The Governance group provided a comprehensive update on the initial governance parameter settings, highlighting the inputs received from stakeholders and the adjustments made based on the advice of different experts, advisors and committee members. The document has been updated and is very close to being finalized so that it can be ratified by the Technical Steering Committee and finally shared with the broader community.

• The group discussed potential challenges that affect quorum and threshold of the different governance actions, as well as solutions to ensure sufficient SPO participation in the voting process, particularly for hard fork initiation and security parameter changes. The team is actively working to address any issues and make the necessary updates to the documents, with a focus on transparency and community involvement in the process.

• The possibility of Centralized Exchanges participating in governance was discussed. It is assumed that these organizations will not participate in governance because they could expose themselves to regulatory institutions such as the SEC, but the official position of these Centralized Exchanges is not sufficiently clear. Since they have a significant stake, the group considered it advisable to contact these companies to find out in advance whether they will participate in governance with their vote or not.

• Although the Parameters Committee is currently focused on those initial parameter settings, they managed to make significant progress in writing the rationale for PCP-002, especially documenting all the inputs that were considered in the deliberations. They will continue working on the PCP-002 Result Rationale and the conclusions in the following weeks.

• There is no relevant update on PCP-003, as the Parameters Committee decided to terminate PCP-002 before starting the works on PCP-003.

• The group also discussed the possibility of allowing observers in the meetings, with the consensus leaning towards allowing public observers as long as the agenda is not disrupted.

• The Parameter Committee discussed the need for a new cost model for the upcoming Plutus V3 and the potential updates to Plutus V1 and V2 cost settings.

• The economic and technical groups emphasized the importance of transparency with the community regarding the impact of running older protocol versions, considering the potential exclusion of these versions from participation.