Cardano Developer Seeks Reduced Funding of $46.8 Million for Expansion and DeFi Development

Input Output, the company responsible for building and maintaining the Cardano blockchain, is requesting roughly half the funding it sought in the previous year from the project's community treasury. The company has submitted nine proposals totaling $46.8 million for 2026, with a focus on scaling the network to increase transaction capacity and exploring Bitcoin DeFi opportunities. This reduced funding request marks the first step in a plan to decrease dependence on community funds, with the goal of becoming self-sustaining through its own revenue. By the end of 2026, Input Output expects smaller teams to take on a significant portion of its current workload, including firms like VacuumLabs and Midgard Labs. The proposals are divided into two main themes: the Leios consensus upgrade, which aims to increase Cardano's transaction processing capacity, and the Pogun system, designed to bring Bitcoin-based decentralized finance to the network. Additional proposals address performance improvements, security testing, and expanded API services. Each proposal outlines specific delivery leads and ties funding to milestones, with voting scheduled to run through May 24. The outcome will indicate whether Cardano's governance treats Input Output as any other grant applicant or continues to approve its requests based on deference.