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

The organization responsible for developing the Cardano blockchain is seeking a substantial reduction in funding from the project's treasury. Input Output submitted nine proposals amounting to $46.8 million for 2026, marking a considerable decrease from the $97.5 million requested 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 dependence on community funds, aiming for the company to become self-sufficient through its own revenue. By the end of 2026, Input Output expects smaller teams to take over most of its current in-house work, including collaborations with firms like VacuumLabs and Midgard Labs. The proposals are divided into two main themes: scaling and Bitcoin DeFi. The first theme involves a consensus upgrade called Leios, which promises to increase Cardano's transaction processing capacity by 10 to 65 times. The second theme involves a system called Pogun, designed to bring Bitcoin-based decentralized finance to Cardano, allowing bitcoin holders to borrow and earn yield on their holdings without relying on centralized intermediaries. Other proposals address performance improvements, security testing infrastructure, and expanded API services. Each proposal outlines specific delivery milestones, ensuring that funding is tied to the achievement of these milestones rather than being released upfront. The voting process, which begins on Tuesday and runs through May 24, will be overseen by roughly 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 role in the project.