Cardano Community Approves $71M for Core Network Upgrades with 74% Support

Cardano’s community has approved a $71 million treasury allocation for core development upgrades, with 74% voter support, marking the first direct community-driven funding plan of its kind[1]. The initiative, led by Input Output Global (IOG) under Charles Hoskinson, aims to enhance scalability, developer accessibility, and cross-chain interoperability over the next 12 months[2]. The allocation, totaling 96 million ADA, will be used to fund major projects such as Hydra and Project Acropolis, which are expected to improve transaction efficiency and node flexibility[2]. These upgrades are critical in addressing current limitations, including an average 20-second transaction time and a 0.34 ADA fee[2].

The approved funding reflects a shift toward decentralized governance, with progress updates to be provided monthly and budget reports every three months to maintain transparency[2]. This approach aligns with broader trends in blockchain governance, such as Ethereum’s Core Dev grants, while distinguishing Cardano’s strategy through its focus on public infrastructure rather than marketing or exchange listing incentives[2]. For instance, the treasury will not be used to cover SNEK’s request for 5 million ADA to secure Tier 1 exchange listings, as IOG has explicitly rejected such proposals[2]. Instead, a treasury bond model is being introduced, enabling projects to borrow ADA and repay after generating revenue[2].

The financial implications of these upgrades may include reduced transaction fees, increased throughput, and a boost in Total Value Locked (TVL), which could enhance the platform’s appeal to developers and users alike[2]. ADA is currently trading above $0.73, having gained more than 2.6% in the last 24 hours[2]. However, technical indicators remain mixed, with short-term analysis suggesting downward pressure and key support levels around $0.72 and $0.67–0.71 under close watch[2]. Long-term on-chain metrics, on the other hand, show a growing network with increasing active addresses, indicating sustained user engagement despite price volatility[2].

Fractal analysis suggests that if the network continues its development and adoption trajectory, ADA could potentially reach $5.96, mirroring its 2020–2021 surge[2]. The success of the upgrades will depend on the platform’s ability to maintain key price levels and attract renewed investor interest. The timing of these developments also coincides with broader market activity, as Cardano’s ecosystem moves toward a new phase of technical maturity[1].

Source: [1] Cardano Approves $71M for Core Upgrades (https://coincu.com/352452-cardano-approves-71m-for-core-upgrades)

[2] Cardano Treasury Approves $71M Development Fund (https://www.fxleaders.com/news/2025/08/04/cardano-treasury-approves-71m-development-fund-ada-tests-critical-support-at-0-73/)