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

The company behind the Cardano blockchain, Input Output, is requesting roughly half the funding it sought last year from the project's treasury. This reduction is part of a plan to decrease dependency on community funds. The submitted proposals, totaling $46.8 million, focus on enhancing Cardano's capacity and exploring Bitcoin DeFi opportunities. The Cardano network, similar to other major blockchains, has a shared fund that is allocated by community representatives. Historically, Input Output has been the largest recipient due to its significant role in the blockchain's development. However, the company now aims to reduce its annual funding requests, with the goal of becoming self-sufficient and allowing community funds to support smaller engineering groups. By the end of 2026, Input Output expects smaller teams to take over most of its current responsibilities. The proposals are divided into two main themes: scaling and Bitcoin DeFi. A key proposal is the Leios consensus upgrade, which promises to increase Cardano's transaction processing capacity significantly, making it competitive with other leading networks. Another proposal, Pogun, aims to bring Bitcoin-based decentralized finance to Cardano, enabling bitcoin holders to borrow and earn yield without relying on centralized intermediaries. Smaller proposals cover improvements to Cardano's smart contract engine, security, and developer tools. Each proposal is tied to specific delivery milestones, ensuring that funding is released in stages. The voting process, which opens this week and runs through May 24, will be decided by roughly 1,000 elected delegates representing ADA holders. The outcome will test whether Cardano's governance treats Input Output differently now that alternative grant applicants and governance structures are in place. Input Output has also highlighted progress in the ecosystem, including the launch of a new stablecoin and an increase in total assets deposited on the network.