Cardano Developer Seeks Reduced Funding of $46.8 Million for Expansion and DeFi Integration

Input Output, the company responsible for building and maintaining the Cardano blockchain, is seeking a substantially lower amount of funding from the community treasury this year. The company has submitted nine proposals worth $46.8 million for 2026, marking a notable reduction from its $97.5 million request in 2025. Several of these proposals are focused on enhancing Cardano's scalability and integrating Bitcoin DeFi capabilities. Cardano's community treasury, which is funded by network fees, is allocated through a voting process by community representatives. Historically, Input Output has been the largest recipient of these funds due to its significant role in developing the blockchain's underlying software. However, the company is now aiming to reduce its reliance on community funding by decreasing its annual requests until it can sustain itself through its own revenue. The proposals submitted by Input Output are divided into two main categories. The first involves a consensus upgrade called Leios, which is expected to increase Cardano's transaction processing capacity by 10 to 65 times, potentially exceeding 1,000 transactions per second. This upgrade is scheduled for a test release in June and full deployment by the end of the year. The second key proposal involves a system called Pogun, designed to bring Bitcoin-based decentralized finance to the Cardano ecosystem. This system would allow Bitcoin holders to borrow and earn yield on their holdings without having to rely on a centralized intermediary. The lending component of Pogun is expected to be released to the public in the second quarter. In addition to these major proposals, Input Output has also submitted smaller proposals focused on improving the performance of Cardano's smart contract engine, enhancing security testing infrastructure, developing new tools for developers, and expanding API services. Each proposal outlines specific delivery leads and ties funding to the achievement of milestones, rather than providing upfront funding. Voting on these proposals is set to begin and will run through May 24, with decisions made by approximately 1,000 elected delegates who represent ADA holders. The outcome of this vote will provide insight into whether Cardano's governance treats Input Output differently now that alternative grant applicants and governance structures are in place.