Withdraw 3,810,423 ada for Mithril Protocol

This Treasury Withdrawal funds Mithril Protocol.

This Treasury Withdrawal is submitted by Intersect on behalf of the vendor. The content for the following sections; Abstract, Motivation and Rationale have been sourced from the approved proposal submitted by the Vendor as part of the Intersect budget process.

Mithril solves one of Cardano's most pressing infrastructure challenges: the cost and complexity of securely accessing and verifying blockchain state. As today full node synchronisation is slow and light clients rely on centralized trust. Mithril addresses this by using stake-based threshold multi-signatures to certify Cardano state in a trustless way, enabling nodes and applications to verify state rapidly without relying on the entire chain.

Strategic Pillar Alignment

• Pillar 1: Infrastructure & Research Excellence

Fully aligned

State proofs strengthen cross-chain interoperability.

• Pillar 2: Adoption & Utility

Fully aligned

Faster sync times lower onboarding friction and unlock new tooling for exchanges, wallets, and monitoring.

• Pillar 4: Community & Ecosystem Growth

Partially aligned

Mithril enables community-built tools (bridges, light wallets, full wallets, light clients, monitoring tools) to emerge around Cardano.

Cardano is entering a period of heightened governance activity, ecosystem expansion, and scaling pressure. Without fast, verifiable, and trustless infrastructure, the network risks growing dependency on centralized indexers and hosted APIs. Funding Mithril's continued development through Intersect MBO ensures Cardano scales while preserving its core decentralization guarantees.

Intersect Budget Process

This proposal achieved the required 67% support threshold during the 2026 Intersect Budget Process Hydra Voting phase and has therefore been advanced for on-chain Treasury Withdrawal Governance Action submission in accordance with the approved Budget Process Framework.

Net Change Limit Compliance

The requested amount does not at time of submission, on its own or in aggregate, breach the applicable 350M Net Change Limit covering Epoch 613 to Epoch 713.

In accordance with the guardrail TREASURY-02a, this withdrawal does not exceed the NCL at the moment of submission.

Audit & Oversight

Audit and oversight costs are included within the overhead applied to this proposal. The Intersect administration fee covers administrative oversight and is reflected within the cost of this proposal. Independent oversight will be provided through Intersect and technically capable third-party, including reporting obligations and milestone-based disbursement controls.

Prior Treasury Funding Disclosure

Teragone has not previously received direct funding from Cardano treasury or community governance programs.

However, we have been actively involved in the Mithril project for several years through a close collaboration with Input Output Global (IOG), which has funded the project to date.

In this context, Teragone has contributed to the development, maintenance, and evolution of Mithril, gaining strong technical expertise and operational experience while delivering work aligned with the broader Cardano ecosystem.

This proposal represents a transition from IOG-funded development to a community-governed funding model via Intersect, ensuring continuity and long-term sustainability of the Mithril project.

Budget Summary

Intersect Budget Management Tooling

To administrate treasury funds on-chain, Intersect will utilize the treasury management smart contract framework developed by Sundae Labs. A new instance of these smart contracts has been deployed for 2026, mirroring the contracts from the 2025 budget cycle.

• The 2026 Treasury Reserve Smart Contract stake address: stake1784sdxt6jjennmstphgdu7l7c2scf5d02a6cve2dgn5s2kq5u3j9v
  
• The 2026 Treasury Reserve Smart Contract payment address: addr1x84sdxt6jjennmstphgdu7l7c2scf5d02a6cve2dgn5s2k8tq6vh499n88hqkrwsmealas4psng674m4sej5638fq4vqmxs59w
• The 2026 Project Specific Smart Contract payment address: addr1x9d6k9z6t6fvsetj2djmerargk475lef9gfvshy4rwh4h7jm4v295h5jepjhy5m9hj86x3dtafljj2sjepwf2xa0t0aq048cay

Specifics

Intersect will utilize a single Treasury Reserve Smart Contract (TRSC), with one Project-Specific Smart Contracts (PSSC). Intersect’s management consists of five ‘admin’ and three Intersect ‘leadership’ roles. An Oversight Committee consisting of six external, independent third-party entities will provide checks and balances on Intersect, and safeguard against errors and unilateral control. The administration of both TRSC and PSSC will be managed by Intersect, with external oversight on certain actions from the Oversight Committee.

The Oversight Committee consists of Sundae Labs, Cardano Foundation, Dquadrant, NMKR, Sundial and Eternl. Their role is to independently verify key administrative actions using on-chain logic, ensuring accuracy and consistency without exercising discretion over governance decisions.

For all details on Intersect’s configuration please see the Smart Contract Guide on the knowledgebase.

The high level permissions are as follows:

• TRSC Fund and PSSC Modify
  
  • Two of the five Intersect admins, two of the six trusted entities and one of the three Intersect leadership sign-off must authorize
    
• TRSC Disburse
  
  • Two of five Intersect admins, three of six trusted entities and two of three Intersect leadership sign-off must authorize
    
• TRSC Pause and Resume
  
  • Two of five Intersect admins, and one of three Intersect leadership sign-off must authorize
    
• TRSC Sweep
  
  • One of five Intersect admins, and one of three Intersect leadership sign-off must authorize
    
• TRSC Reorganize
  
  • Two of five Intersect admins and three of six trusted entities must authorize

Processes

Upon enactment of this governance action, funding for this project will be directed into the TRSC’s stake address. All instances of TRSC and PSSC can not be staked with a SPO and are delegated to the auto-abstain predefined DRep. From here funds will be withdrawn into a UTxO remaining at the TRSC payment address.

When the Legal contract is prepared and the vendor is ready, funding for this project will be transferred using the Fund action to the PSSC. All milestones will be outlined within the metadata.

A dashboard is available (treasury.sundae.fi) for the community to audit the TRSC or PSSC and track metrics related to this withdrawn ada as well as being immutably verifiable on chain.