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

The company behind the Cardano blockchain, Input Output, is seeking a substantially reduced amount of funding from the project's treasury, marking a shift towards greater financial independence. The nine proposals, totaling $46.8 million, focus on enhancing the network's scalability and exploring Bitcoin-based decentralized finance opportunities. This reduced funding request is part of a broader plan to decrease Input Output's reliance on community funds, with the goal of becoming self-sustaining through its own revenue streams. The proposals are divided into two main themes: scaling the Cardano network and integrating Bitcoin DeFi. The scaling efforts, including the Leios consensus upgrade, aim to significantly increase the network's transaction processing capacity, making it more competitive with other major blockchains. The Bitcoin DeFi integration, through the Pogun system, seeks to enable Bitcoin holders to participate in decentralized lending and yield generation on the Cardano network without needing a centralized intermediary. Smaller proposals address performance improvements, security testing, and developer tools. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages as objectives are met. The voting process, which begins this week and concludes on May 24, will be overseen by approximately 1,000 elected delegates representing ADA holders. The outcome of this vote will provide insight into how the Cardano governance model treats Input Output's funding requests, particularly in light of recent changes that have expanded the project's grant-funding capabilities and introduced alternative development paths.