Cardano Developer Submits $46.8 Million Funding Proposal for Scalability and Bitcoin DeFi Expansion

Input Output, the company responsible for building and maintaining the Cardano blockchain, has submitted nine proposals totaling $46.8 million for the 2026 funding cycle. This amount is significantly lower than the $97.5 million requested last year. The proposals prioritize scaling Cardano's transaction processing capacity and expanding its presence in the Bitcoin DeFi space. Cardano's community treasury, funded by network fees, will be allocated based on votes from community representatives. Historically, Input Output has been the largest recipient of these funds due to its significant role in developing the blockchain's underlying software. However, the company now aims to reduce its dependency on community funding and become self-sustaining through its own revenue. By the end of 2026, Input Output expects smaller, specialized teams to take over most of its current in-house work. The nine proposals are grouped 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 by 10 to 65 times. The second theme involves a system called Pogun, which aims to bring Bitcoin-based decentralized finance to Cardano, allowing bitcoin holders to borrow and earn yield on their holdings without relying on centralized intermediaries. Other 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, and funding will be released in stages. The voting process, which is open until May 24, will be decided by approximately 1,000 elected delegates representing ADA holders. The outcome of the vote will test the effectiveness of Cardano's governance and whether Input Output is treated like any other grant applicant or continues to receive preferential treatment.