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, has submitted nine proposals totaling $46.8 million for the 2026 funding cycle, marking a substantial reduction from its $97.5 million request in 2025. The proposals focus on enhancing Cardano's scalability and exploring Bitcoin DeFi opportunities. This decreased funding request is part of a larger plan to reduce the company's reliance on community treasury funds, aiming to become self-sustaining through its own revenue. By the end of 2026, Input Output expects smaller, specialized teams to take over a significant portion of its current in-house work. The proposals are divided into two main themes: the Leios consensus upgrade, which promises to increase Cardano's transaction processing capacity by 10 to 65 times, and the Pogun system, designed to bring Bitcoin-based decentralized finance to Cardano. Smaller proposals cover improvements to Cardano's smart contract engine, security testing, and developer tools. Each proposal outlines specific delivery milestones and ties funding to these milestones, ensuring a staged release of funds. The voting process, which begins on Tuesday and runs through May 24, will be decided by approximately 1,000 elected delegates representing ADA holders. This vote will test the Cardano community's governance and its willingness to treat Input Output as any other grant applicant. The outcome will signal a shift in the community's thinking, especially with the emergence of alternatives to Input Output. Meanwhile, Input Output has reported progress in the ecosystem, including the launch of a new Cardano stablecoin, USDCx, and an increase in total assets deposited on the network.