Cardano Developer Submits Reduced Funding Proposal for 2026

Input Output, the primary engineering organization responsible for building and maintaining the Cardano blockchain, has submitted nine proposals totaling $46.8 million for the 2026 funding cycle. This amount represents a substantial reduction from the $97.5 million requested in the previous year. The proposals aim to enhance Cardano's scalability and expand its presence in the Bitcoin DeFi space. The reduced funding request marks the first step in Input Output's plan to decrease its reliance on community treasury funds and transition towards self-sustainability. By the end of 2026, the company expects smaller, specialized teams to take over most of its in-house work, including firms like VacuumLabs and Midgard Labs. The proposals are divided into two main themes: scaling and Bitcoin DeFi. The first theme involves a consensus upgrade called Leios, which is expected to increase Cardano's transaction processing capacity by 10 to 65 times. The second theme focuses on a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano. Pogun will enable bitcoin holders to borrow and earn yield on their holdings through Cardano without relying on centralized intermediaries. The voting process, which will determine the fate of these proposals, is scheduled to begin on Tuesday and will run through May 24. The outcome of the vote will test the effectiveness of Cardano's governance system and its ability to treat Input Output like any other grant applicant.