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

Input Output, the company responsible for building and maintaining the Cardano blockchain, is requesting approximately half the funding it sought in the previous year from the project's community treasury. The firm submitted nine proposals totaling $46.8 million for 2026, down from $97.5 million in 2025, with several focusing on scaling Cardano to increase transaction processing capacity and expanding into Bitcoin DeFi. Cardano, like other major blockchains, has a shared pool of funds allocated by network fees, which community representatives vote to distribute for development work. Historically, Input Output has been the largest recipient due to its significant role in building the underlying software. However, the reduced funding request marks the first step in a plan to reduce dependency on community funds, aiming for the company to sustain itself on its own revenue. By the end of 2026, Input Output expects smaller teams to take over most of its current in-house work, including firms like VacuumLabs and Midgard Labs that specialize in specific layers of the Cardano software. The proposals are grouped into two main themes: scaling and Bitcoin DeFi integration. The largest proposal funds the Leios consensus upgrade, which Input Output claims will increase Cardano's transaction processing capacity by 10 to 65 times, targeting over 1,000 transactions per second. This would position Cardano as a competitive chain, comparable to Solana and the fastest Ethereum layer-2 networks in terms of throughput. Leios is scheduled for a test release in June and full deployment by the end of the year. The second major proposal funds the Pogun system, designed to bring Bitcoin-based decentralized finance to Cardano, allowing bitcoin holders to borrow and earn yield on their holdings without relying on a centralized intermediary. Pogun's lending component is set for public release in the second quarter. Smaller proposals focus on performance improvements to Cardano's smart contract engine, security testing infrastructure, developer tools, and expanded API services. Each proposal outlines specific delivery leads and ties funding to delivery milestones, rather than releasing funds upfront. Voting on the proposals opens and will run through May 24, with decisions made by approximately 1,000 elected delegates representing ADA holders. The vote will be a test of whether Cardano's governance treats Input Output like any other grant applicant or continues to approve its requests based on deference. Last year's $97.5 million proposal was approved, but since then, the Cardano Foundation has taken over the project's grant-funding arm, and Intersect has assumed stewardship of core Cardano software, providing alternatives to Input Output. Input Output also highlighted ecosystem progress, including the launch of a new Cardano stablecoin, USDCx, which reached 14.6 million tokens in circulation within weeks, and an increase in total assets deposited on Cardano from $137.5 million to $142.7 million. The outcome of the vote will signal the shift in the Cardano community's approach to funding development, now that tools to support development without Input Output exist.