Cardano Developer Seeks Reduced Funding for Blockchain Expansion

Input Output, the company responsible for developing the Cardano blockchain, is seeking a substantial reduction in funding from the project's community treasury. The company has submitted nine proposals totaling $46.8 million for 2026, marking a notable decrease from the $97.5 million requested in 2025. The proposals primarily focus on enhancing Cardano's scalability and exploring Bitcoin DeFi opportunities. By reducing its funding request, Input Output aims to gradually decrease its reliance on community funds and become self-sustaining through its own revenue. The company expects smaller, specialized teams to take over most of its in-house work by the end of 2026. The proposals are divided into two main themes: scaling and Bitcoin DeFi. The Leios consensus upgrade is expected to significantly increase Cardano's transaction processing capacity, while the Pogun system aims to introduce Bitcoin-based decentralized finance to the platform. Smaller proposals address performance improvements, security testing, and API services. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages. 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 Cardano's governance treats Input Output as any other grant applicant or continues to approve its requests based on its historical involvement with the project.