Cardano Developer Requests Reduced Funding for Scalability and Bitcoin DeFi Expansion

The engineering firm responsible for Cardano's development is seeking a substantial reduction in funding from the project's treasury, marking a shift towards phasing out its dependency on community funds. Input Output has submitted nine proposals totaling $46.8 million for the 2026 voting cycle, which focuses on enhancing Cardano's scalability and exploring Bitcoin DeFi opportunities. The proposals are divided into two primary themes: the Leios consensus upgrade, aimed at increasing transaction processing capacity, and the Pogun system, designed to facilitate Bitcoin-based decentralized finance on Cardano. The company expects smaller, specialized teams to take over most of its in-house work by the end of 2026, with a focus on delivering specific components of the Cardano software. The voting process, which runs through May 24, will be overseen by roughly 1,000 elected delegates and will determine the extent to which Input Output's proposals are funded.