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 seeking a reduced amount of funding from the community treasury for 2026. The company has submitted nine proposals totaling $46.8 million, which is roughly half of the $97.5 million requested in 2025. The proposals focus on scaling the Cardano network to increase its transaction processing capacity and expanding into Bitcoin DeFi. This reduced funding request marks the first step in a plan to decrease the company's dependency on community funds. Instead, Input Output aims to become self-sustaining through its own revenue and allocate community funds to smaller, specialized engineering groups. The proposals are divided into two main themes: scaling and Bitcoin DeFi. The largest proposal funds a consensus upgrade called Leios, which is expected to increase Cardano's transaction processing capacity by 10 to 65 times. Another significant proposal funds a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano. This system would allow bitcoin holders to borrow and earn yield on their holdings through Cardano without relying on a centralized intermediary. The voting process, which is open to roughly 1,000 elected delegates, will determine whether the proposals are approved and will test the Cardano community's governance. The outcome will signal whether the community treats Input Output like any other grant applicant or continues to approve its requests based on its historical role in the project.