Cardano Developer Seeks Reduced Funding for Expansion and Bitcoin DeFi Integration

Input Output, the company responsible for developing the Cardano blockchain, is seeking a substantial reduction in funding from the project's treasury. The company has submitted nine proposals totaling $46.8 million for 2026, a decrease of over 50% from last year's request of $97.5 million. The proposals focus on enhancing Cardano's scalability and exploring opportunities in Bitcoin DeFi. This reduction in funding is part of a broader plan to decrease Input Output's reliance on community funds and transition towards self-sustainability. By the end of 2026, the company expects smaller teams to take over most of its current responsibilities, including firms like VacuumLabs and Midgard Labs. The proposals are divided into two primary themes: scaling and Bitcoin DeFi. The Leios consensus upgrade aims to increase Cardano's transaction processing capacity by 10 to 65 times, targeting over 1,000 transactions per second. In contrast, the Pogun system seeks to bring Bitcoin-based decentralized finance to Cardano, allowing bitcoin holders to borrow and earn yield on their holdings without relying on centralized intermediaries. Smaller proposals focus on improving Cardano's smart contract engine, security testing infrastructure, developer tools, and API services. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages rather than upfront. The voting process, which opens on Tuesday and runs through May 24, will be overseen by roughly 1,000 elected delegates representing ADA holders. The outcome of the vote will indicate whether Cardano's governance treats Input Output like any other grant applicant or continues to approve its requests based on deference. The Cardano Foundation has taken over the project's grant-funding arm, and Intersect has assumed stewardship of core Cardano software, providing alternatives to Input Output. Meanwhile, Input Output has cited progress in the ecosystem, including the launch of a new Cardano stablecoin, USDCx, and an increase in total assets deposited on the network.