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 approximately half the funding it requested in the previous year from the project's community treasury. The firm has submitted nine proposals totaling $46.8 million for 2026, down from $97.5 million in 2025, with several focusing on scaling Cardano's transaction capacity and expanding into Bitcoin DeFi. This reduction in funding request is part of a plan to decrease the company's reliance on community funds and eventually become self-sustaining through its own revenue. By the end of 2026, Input Output expects smaller teams to take over most of its current work, including firms like VacuumLabs and Midgard Labs. The proposals are grouped into two main themes: a consensus upgrade called Leios, aimed at increasing Cardano's transaction processing capacity, and a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano. Other proposals cover performance improvements, security testing, and expanded API services. Each proposal is tied to delivery milestones, and funding will be released in stages. The voting process, which opens on Tuesday and runs through May 24, will be decided by roughly 1,000 elected delegates representing ADA holders. The outcome of the vote will determine whether Cardano's governance treats Input Output like any other grant applicant or continues to approve its requests based on deference. Meanwhile, Input Output has cited progress in the ecosystem, including the launch of a new Cardano stablecoin, USDCx, and an increase in total assets deposited on the network.