Cardano Developer Submits $46.8 Million Funding Proposal for Scalability and Bitcoin DeFi Expansion

Input Output, the company responsible for building and maintaining the Cardano blockchain, has reduced its funding request from the project's treasury by roughly half. The company has submitted nine proposals totaling $46.8 million for the 2026 voting cycle, down from $97.5 million in the previous year. The proposals focus on enhancing Cardano's scalability to increase its transaction processing capacity and expanding its presence in Bitcoin DeFi. Cardano's community treasury, funded by network fees, is allocated through a voting process. Input Output has historically been the largest recipient of these funds due to its significant role in developing the underlying software. However, the company now aims to reduce its reliance on community funds by decreasing its annual funding requests until it can sustain itself through its own revenue. By the end of 2026, Input Output expects smaller, specialized teams to take over most of its current in-house work. The nine proposals are grouped into two main themes: scaling and Bitcoin DeFi. The first theme includes a consensus upgrade called Leios, which is expected to increase Cardano's transaction processing capacity by 10 to 65 times. The second theme involves a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano. The proposals also 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, and funding will be released in stages. The voting process, which begins on Tuesday and runs through May 24, will be decided by roughly 1,000 elected delegates representing 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 based on deference. Meanwhile, Input Output has reported progress in the ecosystem, including the launch of a new Cardano stablecoin, USDCx, and an increase in total assets deposited on the network.