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 seeking a substantially lower amount of funding from the project's treasury this year. The firm has submitted nine proposals totaling $46.8 million for 2026, down from $97.5 million in the previous year. These proposals focus on enhancing Cardano's scalability and exploring Bitcoin DeFi opportunities. Cardano's community treasury, which is financed by network fees, is allocated through a voting process. Historically, Input Output has been the primary recipient of these funds due to its significant role in the development of the blockchain. However, the company now aims to reduce its dependence on community funding by decreasing its annual requests until it can sustain itself through its own revenue. The proposals are categorized into two main themes: scaling and Bitcoin DeFi. The first theme includes a consensus upgrade called Leios, which is expected to increase Cardano's transaction processing capacity by 10 to 65 times. This upgrade is scheduled for a test release in June and full deployment by the end of the year. The second theme involves a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano. This system will enable bitcoin holders to borrow and earn yield on their holdings through Cardano without relying on centralized intermediaries. Other proposals cover improvements to Cardano's smart contract engine, security testing infrastructure, developer tools, and API services. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages as different components are completed. Voting on these proposals is set to begin and will be decided by approximately 1,000 elected delegates representing ADA holders. The outcome of the vote will indicate whether Cardano's governance treats Input Output as any other grant applicant or continues to approve its requests based on its historical role in the project.