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

The organization responsible for developing the Cardano blockchain, Input Output, is seeking a reduced funding allocation from the project's treasury. The company has submitted nine proposals amounting to $46.8 million for the 2026 cycle, marking a substantial decrease from its $97.5 million request in 2025. Several proposals focus on enhancing Cardano's scalability to increase transaction processing capacity and exploring Bitcoin DeFi opportunities. The reduced funding request is part of a plan to decrease Input Output's reliance on community treasury funds, aiming to sustain itself through its own revenue and enable smaller engineering groups to contribute to the project's development. The proposals are divided into two primary themes: the Leios consensus upgrade, which aims to significantly increase Cardano's transaction processing capacity, and the Pogun system, designed to facilitate Bitcoin-based decentralized finance on the Cardano network. Other proposals address performance improvements, security testing, and expanded API services. The funding is tied to specific delivery milestones, and the voting process, which begins on Tuesday and runs through May 24, will be overseen by approximately 1,000 elected delegates representing ADA holders. The outcome of the vote will indicate whether the Cardano community's approach to governance has shifted, treating Input Output as an equal grant applicant rather than providing preferential treatment.