Cardano Developer Requests Reduced Funding of $46.8 Million for Expansion and Bitcoin DeFi Integration

The company behind the Cardano blockchain, Input Output, is seeking a substantially lower amount of funding from the project's community treasury, marking a shift towards reducing its dependence on community funds. The submitted proposals, totaling $46.8 million, focus on scaling the network to enhance transaction capacity and exploring Bitcoin DeFi opportunities. This reduction in funding request is part of a broader plan to phase out Input Output's reliance on community funds, aiming to sustain itself through its own revenue. By the end of 2026, smaller teams are expected to take over most of the work currently handled by Input Output, including firms like VacuumLabs and Midgard Labs. The proposals are divided 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 significantly. The second theme involves a system called Pogun, designed to bring Bitcoin-based decentralized finance to Cardano, allowing bitcoin holders to borrow and earn yield without relying on centralized intermediaries. Other proposals cover performance improvements, security testing, and expanded API services. Each proposal is tied to specific delivery milestones, with funding released in stages. The voting process, which opened on Tuesday and will run through May 24, will be decided by roughly 1,000 elected delegates representing ADA holders. The outcome of the vote will test the governance of Cardano, determining whether Input Output will be treated like any other grant applicant or continue to receive preferential treatment. The Cardano ecosystem has also shown progress, with a new stablecoin, USDCx, reaching 14.6 million tokens in circulation and total assets deposited on Cardano increasing to $142.7 million.