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

Input Output, the company responsible for developing the Cardano blockchain, is seeking a substantial reduction in funding from the project's community treasury. The firm has submitted nine proposals totaling $46.8 million for 2026, marking a decrease of over 50% from the $97.5 million requested in 2025. Several proposals focus on enhancing Cardano's scalability to increase its transaction capacity and expanding into Bitcoin DeFi. This reduced funding request is part of a plan to phase out Input Output's reliance on community funds, aiming to become self-sufficient through its own revenue. By the end of 2026, smaller teams are expected to take over most of the work currently handled by Input Output. The proposals are divided into two main themes: scaling and Bitcoin DeFi. The Leios consensus upgrade aims to increase Cardano's transaction processing capacity by 10 to 65 times, while the Pogun system seeks to bring Bitcoin-based decentralized finance to Cardano. Smaller proposals cover performance improvements, security testing, and expanded API services. Each proposal ties funding to specific delivery milestones, and voting will be open until May 24. The outcome of the vote will test whether Cardano's governance treats Input Output like any other grant applicant or continues to approve its requests based on deference.