Cardano Copper Proposal Draws 0.24% of DRep Voting Power

A Cardano (ADA) request to withdraw 22 million ADA from the network’s treasury for a tokenized copper reserve had support equal to 0.24% of delegated representative (DRep) voting power in a Sunday snapshot, well below the approval threshold.

At 12:13 p.m. ET (16:13 UTC) Oct. 25, the Cardano governance tally showed 12.55 million ADA in support, 879.46 million ADA against, or 16.66% of voting power, and 4.52 billion ADA uncast, or 83.11%. The Constitutional Committee had not voted. Both DReps and the committee must meet a 67% ratification threshold.

Toto Finance Inc. submitted the request Oct. 15. Its budget assigns 14,724,409 ADA, or 66.93% of the total, to copper purchases. It sets aside 2.64 million ADA for technology and project management, 3.53 million ADA for external operations and assurance, 441,732 ADA for execution and 660,000 ADA for independent administration. The proposal’s budget and break-even assumptions were detailed earlier.

Under a scenario in which the full budget is spent, ADA’s dollar value stays unchanged and copper is bought at $6.73 per pound, a break-even sale price would be about $10.06 per pound. That price would be 49.41% above the assumed purchase price, before additional basis costs. Fees and engineering expenses could still prevent a positive return to the treasury.

The plan calls for holding the copper for 18 to 24 months, then returning net sale proceeds and unused or unearned funds to the treasury by month 36. It does not guarantee that the treasury will recover its original ADA or make a profit.

Toto proposes storing independently verified COMEX Grade 1 copper cathodes at a COMEX-approved U.S. warehouse in the greater New Orleans area. The warehouse is unnamed, and no agreement or copper ownership existed when the proposal was submitted. A U.S. PwC member firm is listed as a preferred prospective provider but had not been engaged; legal, custody, assurance and technical security work remain conditions for deployment.

The governance action remains active. The Oct. 25 tally is a snapshot of an ongoing vote, not an approval decision.