Cardano Developer Requests Reduced Funding for Expansion and Bitcoin DeFi

Input Output, the company responsible for developing the Cardano blockchain, is seeking a substantial reduction in funding from the project's community treasury. The company has submitted nine proposals totaling $46.8 million for 2026, which is roughly half of the $97.5 million it requested in 2025. The proposals focus on scaling Cardano's transaction processing capacity and expanding its presence in Bitcoin DeFi. This reduction in funding is part of a broader plan to reduce Input Output's reliance on community funds and transition to self-sustainability. By the end of 2026, Input Output aims to have smaller, specialized teams take on most of its current work, including firms like VacuumLabs and Midgard Labs. 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 key proposal funds a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano. The system would allow bitcoin holders to borrow and earn yield on their holdings through Cardano without relying on a centralized intermediary. Smaller proposals cover performance improvements to Cardano's smart contract engine, security testing infrastructure, developer tools, and expanded API services. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages as different parts of the project are completed. The voting process, which runs through May 24, will be decided by roughly 1,000 elected delegates known as DReps, who represent ADA holders. The outcome of the vote will test whether Cardano's governance treats Input Output like any other grant applicant or continues to approve its requests largely on a basis of deference.