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

Input Output, the company responsible for developing the Cardano blockchain, is requesting approximately half the funding it sought last year from the project's community treasury. The firm has submitted nine proposals totaling $46.8 million for 2026, with a focus on scaling the network and expanding into Bitcoin DeFi. This reduced request marks the first step in a plan to decrease dependency on community funding, with the goal of becoming self-sustaining through its own revenue. The proposals are divided into two main themes: scaling and Bitcoin DeFi. The largest proposal funds the Leios consensus upgrade, which aims to increase Cardano's transaction processing capacity by 10 to 65 times. Another key proposal supports the development of Pogun, a system designed to bring Bitcoin-based decentralized finance to Cardano. Smaller proposals focus on performance improvements, security testing, and expanded API services. Each proposal is tied to specific 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 will indicate whether Cardano's governance treats Input Output as any other grant applicant or continues to approve its requests based on deference. The Cardano community's shift in thinking will be reflected in the voting results, as alternatives to Input Output now exist, and the project's grant-funding arm has been taken over by the Cardano Foundation.