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

Input Output, the company responsible for building and maintaining the Cardano blockchain, has submitted a set of proposals totaling $46.8 million for the 2026 funding cycle. This amount is roughly half of what the company requested in 2025, marking a notable reduction in funding requirements. The proposals, which were submitted on Tuesday, focus on enhancing the scalability of the Cardano network and expanding its presence in the Bitcoin DeFi space. Cardano, similar to other major blockchain networks, has a community-managed treasury that is funded by network fees. The community then votes to allocate these funds towards various development projects. Historically, Input Output has been the largest recipient of these funds due to its significant role in developing the Cardano software. However, the company is now taking steps to reduce its dependence on community funding. The reduced funding request is part of a larger plan to gradually decrease Input Output's reliance on community funds over the next few years. The ultimate goal is for the company to become self-sustaining, allowing community funds to be allocated to a more diverse range of development projects. By the end of 2026, Input Output expects to have transitioned a significant portion of its development work to smaller, specialized teams. This includes companies like VacuumLabs and Midgard Labs, which will focus on specific aspects of the Cardano software. The nine proposals submitted by Input Output can be broadly categorized into two main themes: scaling and Bitcoin DeFi. One of the key proposals is for a consensus upgrade called Leios, which is designed to significantly increase the transaction processing capacity of the Cardano network. According to Input Output, Leios has the potential to boost the network's throughput by 10 to 65 times, allowing it to process over 1,000 transactions per second. This would put Cardano on par with some of the fastest blockchain networks in the industry, including Solana and Ethereum's layer-2 networks. The Leios upgrade is scheduled for a test release in June, with a full deployment expected by the end of the year. Another significant proposal is for a system called Pogun, which aims to bring Bitcoin-based decentralized finance to the Cardano network. Pogun will enable 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 of the year. In addition to these flagship proposals, Input Output has also submitted several smaller proposals focused on improving the performance of Cardano's smart contract engine, enhancing security testing infrastructure, and expanding developer tools and API services. Each proposal includes specific delivery leads and ties funding to the achievement of specific milestones, rather than releasing the funds upfront. This approach allows for a more staged and transparent allocation of community funds. The voting process for these proposals is set to begin on Tuesday and will run through May 24. The decisions will be made by a group of approximately 1,000 elected delegates, known as DReps, who represent the interests of ADA holders. Charles Hoskinson, the founder of Input Output, is expected to release a video this week, making the case for the proposals directly to the DReps. The outcome of the vote will be an important test of the Cardano community's governance structure, which has undergone significant changes over the past two years. The community will need to decide whether to continue supporting Input Output's development work or to allocate funds to alternative projects and developers. In its release, Input Output also highlighted the progress being made in the Cardano ecosystem. A new stablecoin, USDCx, has seen significant adoption since its launch, with 14.6 million tokens in circulation. Additionally, the total value of assets deposited on the Cardano network has increased from $137.5 million to $142.7 million over the same period. The outcome of the vote will provide valuable insights into the Cardano community's priorities and its willingness to support the development of the network. Whether the full set of proposals is approved, partially funded, or significantly modified will depend on the community's vision for the future of the Cardano ecosystem.