Cardano community members have approved a $71 million funding proposal to support a year-long upgrade initiative led by core developer Input Output Engineering (IOE).
Data from Cardano network explorer AdaStat shows the proposal passed with 74% approval, receiving 200 votes in favor, six against, and seven abstentions.
This marks the first time that core protocol development will be directly funded through Cardano’s decentralized on-chain treasury, signaling a significant milestone in the network’s governance model.
What Are the Implications of the Proposal for Cardano?
The 12-month roadmap, crafted by Input Output Engineering (IOE) and aligned with previously approved community priorities, centers on three key objectives: enhancing scalability, improving the developer experience, and boosting interoperability.
The proposal outlines a robust development cycle featuring major protocol upgrades and foundational improvements to Cardano’s core architecture. One of the most significant upgrades is Ouroboros Leios—a next-generation evolution of Cardano’s consensus protocol—designed to significantly boost transaction throughput without sacrificing decentralization or security.
IOE will also continue development on Hydra, Cardano’s layer-2 scaling solution aimed at enabling real-time, low-cost microtransactions, and Mithril, a multi-signature aggregation protocol that speeds up node bootstrapping and supports lightweight clients.
The roadmap introduces Nested Transactions, which will enable more advanced smart contract capabilities and foster smoother cross-chain interoperability.
Another major focus is Project Acropolis, a structural redesign of the Cardano node. This initiative will break the node into modular components, simplifying the onboarding of new core developers and improving long-term network maintainability.
Additional enhancements will address faster synchronization, reduced RAM usage, and lower operational costs for stake pool operators—ultimately making the Cardano network more efficient, developer-friendly, and resilient for the broader ecosystem.
How will the funding be released and monitored?
The approved 96 million ADA will be distributed on a milestone-based schedule, ensuring that funds are released only upon the successful completion of clearly defined technical objectives.
Oversight of the process will be handled by Intersect, a member-based organization within the Cardano ecosystem serving as the project administrator. A supervisory committee, along with smart contract-based tracking, will verify each milestone before unlocking payments.
To promote transparency and accountability, IOE is required to publish monthly progress updates, detailed engineering timesheets, and quarterly budget reports, keeping the community informed throughout the development cycle.
Additionally, external vendors from the Cardano Developer Ecosystem Coalition will contribute to the project. Their involvement is expected to encourage greater decentralization and bring new talent into the core development process.
ADA price surges
ADA, Cardano’s native cryptocurrency, broke out of a multi-week downtrend after the funding proposal was approved, rising more than 8% from recent lows. As of writing, ADA is trading at $0.7357, marking a nearly 3% gain in the past 24 hours.
