Cardano Developer Submits $46.8 Million Funding Proposal for Scalability and DeFi Expansion

Input Output, the company responsible for developing the Cardano blockchain, has reduced its funding request from the community treasury by nearly half. The submitted proposal, totaling $46.8 million, focuses on enhancing the network's transaction capacity and exploring Bitcoin DeFi opportunities. This reduction marks the first step in Input Output's plan to decrease its reliance on community funding, aiming to become self-sufficient through its own revenue. The proposal outlines two primary themes: a consensus upgrade called Leios, which is expected to increase Cardano's transaction processing capacity, and a system called Pogun, designed to bring Bitcoin-based decentralized finance to the network. Smaller proposals address performance improvements, security testing, and developer tools. 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 deference. The Cardano ecosystem has shown progress, with the recent launch of a new stablecoin, USDCx, and an increase in total assets deposited on the network.