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

Input Output, the company responsible for building and maintaining the Cardano blockchain, is seeking a substantially lower amount of funding from the project's treasury this year. The company has submitted nine proposals totaling $46.8 million for 2026, marking a considerable reduction from the $97.5 million requested in 2025. These proposals focus on enhancing Cardano's scalability and exploring Bitcoin DeFi opportunities. The reduction in funding requested is part of a broader plan to decrease Input Output's reliance on community funds, aiming to become self-sufficient through its own revenue. By the end of 2026, the company anticipates that smaller, specialized teams will undertake most of its current in-house work. The proposals are divided into two main themes: the first involves a consensus upgrade called Leios, designed to significantly increase Cardano's transaction processing capacity, potentially making it competitive with other major blockchains like Solana and Ethereum's layer-2 networks. The second theme centers around Pogun, a system aimed at integrating Bitcoin-based decentralized finance into Cardano, allowing bitcoin holders to leverage their assets without relying on centralized intermediaries. Other proposals cover improvements to Cardano's smart contract engine, security testing, developer tools, and API services. Each proposal outlines specific delivery leads and ties funding to the completion of milestones, ensuring a staged release of funds. Voting on these proposals, which will be decided by approximately 1,000 elected delegates representing ADA holders, commenced on Tuesday and will conclude on May 24. The outcome of this vote will be a significant test of Cardano's governance, indicating whether the community treats Input Output differently now that alternatives for grant funding and core software development exist.