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

The company behind the Cardano blockchain is seeking a substantial reduction in funding from the project's treasury. Input Output has submitted nine proposals amounting to $46.8 million for 2026, marking a notable decrease from its $97.5 million request in 2025. The proposals primarily focus on enhancing Cardano's scalability to increase its transaction capacity and expanding into the realm of Bitcoin decentralized finance. This reduced funding request is part of a broader plan to reduce Input Output's reliance on community funds, with the aim of becoming self-sustaining through its own revenue. 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: the first involves a consensus upgrade called Leios, which promises to significantly increase Cardano's transaction processing capacity, making it competitive with other major blockchains. The second theme revolves around a system called Pogun, designed to bring Bitcoin-based decentralized finance to Cardano, allowing bitcoin holders to borrow and earn yield on their holdings without relying on centralized intermediaries. Smaller proposals cover various performance improvements, security testing, and expanded API services. Each proposal outlines specific delivery leads and ties funding to delivery milestones, ensuring a more staged and accountable approach to funding. The voting process, which opens this week and runs through May 24, will be overseen by roughly 1,000 elected delegates representing ADA holders. The outcome of this vote will be a significant test of Cardano's governance, determining whether Input Output is treated as any other grant applicant or if its requests continue to be approved based on historical deference. The Cardano community's decision will signal a shift in its approach to funding development, now that alternatives to Input Output exist, and will indicate the community's willingness to support a broader range of development projects.