Cardano Developer Seeks Reduced Funding for Expansion and Bitcoin DeFi Integration

The company responsible for building and maintaining the Cardano blockchain, Input Output, is seeking a substantially smaller portion of funding from the project's community treasury for 2026. This reduction is part of a broader plan to decrease dependency on community funding and transition towards self-sustainability. Input Output has submitted nine proposals, totaling $46.8 million, focusing on scaling the Cardano network to enhance its transaction capacity and expanding into Bitcoin DeFi. Several proposals are geared towards improving the network's performance, including a consensus upgrade called Leios, which aims to increase transaction processing capacity by 10 to 65 times. Another key proposal, Pogun, seeks to integrate Bitcoin-based decentralized finance into Cardano, allowing bitcoin holders to borrow and earn yield without relying on centralized intermediaries. The voting process, which involves roughly 1,000 elected delegates representing ADA holders, will determine the fate of these proposals and signal the community's willingness to support Input Output's plans. The outcome will also indicate whether the Cardano governance treats Input Output differently now that alternative funding and development options exist.