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 reduced funding request is part of a long-term plan to decrease the company's reliance on community treasury funds. By the end of 2026, Input Output expects smaller teams to take over most of its current responsibilities, including firms like VacuumLabs and Midgard Labs. The proposals are grouped into two main themes: the Leios consensus upgrade, which aims to increase Cardano's transaction processing capacity, and the Pogun system, which seeks to integrate Bitcoin-based decentralized finance into Cardano. Other proposals cover performance enhancements, security testing, and expanded API services. Each proposal is tied to specific delivery milestones, and voting is set to open, with roughly 1,000 elected delegates making the decisions. The outcome will test whether Cardano's governance treats Input Output like any other grant applicant or continues to approve its requests based on deference. Meanwhile, Input Output has highlighted progress in the ecosystem, including the launch of a new Cardano stablecoin and an increase in total assets deposited on the network.