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 treasury. The company has submitted nine proposals totaling $46.8 million for 2026, down from $97.5 million in the previous year. Several of these proposals focus on enhancing Cardano's scalability to increase its transaction capacity and expanding into the Bitcoin DeFi space. Cardano, similar to other major blockchains, maintains a communal fund fueled by network fees, which is allocated by community representatives through a voting process. Historically, Input Output has been the largest recipient of these funds due to its significant role in developing the underlying software. However, the reduced funding request marks the first step towards reducing this dependency, with Input Output aiming to decrease its annual funding requests until it can sustain itself through its own revenue. The proposals are divided into two primary themes: the first focuses on a consensus upgrade called Leios, which is expected to increase Cardano's transaction processing capacity by 10 to 65 times, and the second involves a system called Pogun, designed to integrate Bitcoin-based decentralized finance into Cardano. Smaller proposals cover various improvements, including performance enhancements to Cardano's smart contract engine and expanded API services. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages as different components are completed. The voting process, which opened on Tuesday and will run through May 24, 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 significance to the project.