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

Input Output, the company responsible for developing 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 for 2026, marking a decrease from the $97.5 million requested in 2025. The proposals focus on enhancing Cardano's scalability and exploring Bitcoin-based decentralized finance opportunities. This reduced funding request is part of Input Output's plan to gradually decrease its reliance on community treasury funds and become self-sufficient through its own revenue streams. By the end of 2026, the company expects smaller, specialized teams to take over most of its current work, including collaborations with firms like VacuumLabs and Midgard Labs. The proposals are divided into two main themes: the Leios consensus upgrade, which aims to significantly increase Cardano's transaction processing capacity, and the Pogun system, designed to introduce Bitcoin-based decentralized finance to the Cardano ecosystem. Smaller proposals cover various improvements, including performance enhancements to Cardano's smart contract engine and expanded API services. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages as different components are completed. The voting process, which is open to roughly 1,000 elected delegates representing ADA holders, will determine the fate of these proposals and provide insight into the Cardano community's governance and willingness to support Input Output's requests.