Cardano Developer Requests Reduced Funding 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 project's treasury this year. The company has submitted nine proposals totaling $46.8 million, down from $97.5 million in 2025, with a focus on scaling the network and expanding into Bitcoin-based decentralized finance. Cardano's community treasury is funded by network fees and is allocated through a voting process. Input Output has historically been the largest recipient of these funds due to its significant role in the development of the blockchain. However, the company aims to reduce its dependence on community funding by decreasing its annual requests until it can sustain itself through its own revenue. The proposals submitted by Input Output can be grouped into two main themes: scaling and Bitcoin DeFi. The first theme includes a consensus upgrade called Leios, which is expected to increase the network's transaction processing capacity by 10 to 65 times. This upgrade is scheduled for a test release in June and full deployment by the end of the year. The second theme focuses on a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano. This system will allow Bitcoin holders to borrow and earn yield on their holdings without having to give custody to a centralized intermediary. The lending component of Pogun is targeted for public release in the second quarter. In addition to these two flagship proposals, Input Output has also submitted smaller proposals for performance improvements to Cardano's smart contract engine, security testing infrastructure, developer tools, and expanded API services. Each proposal includes specific delivery leads and ties funding to delivery milestones. The voting process for these proposals is scheduled to open and will run through May 24. The decisions will be made by roughly 1,000 elected delegates who represent ADA holders. The outcome of the vote will test whether Cardano's governance treats Input Output like any other grant applicant or continues to approve its requests based on deference. The Cardano ecosystem has seen significant progress, with a new stablecoin, USDCx, reaching 14.6 million tokens in circulation within weeks of its launch. Total assets deposited on Cardano have also increased from $137.5 million to $142.7 million over the same period. The outcome of the vote will signal how much the Cardano community's thinking has shifted now that alternatives to Input Output exist.