The Foundation can confirm that if a Council wishes to propose a budget of any kind, it should be supported by the Governance Fund and go through the standard Council Operating Budget process, voted on by the Token House.
In this specific case, the Security Council wants to propose a “top up” to the rewards governance approved in Season 7 (proposed by the Council Lead.) There is no other process through which to support this request, so it should be included as part of this budget proposal. It was the Foundation’s understanding that the Lead and Budget Board had been in conversation about this portion of the budget proposal.
The request for Season 7 rewards may be separated out from the request for Season 8 & 9 rewards, so that the Token House votes on two separate proposals, but both would go through the same process and would be voted on during Special Voting Cycle #39c.