Cardano Approves $96M Treasury For Network Upgrades With Milestone Funding

Cardano’s community has approved a 96 million ADA treasury allocation to fund major network upgrades aimed at improving scalability, developer onboarding, and interoperability, with a milestone-based funding structure designed to ensure accountability and transparency [1]. The initiative, supported by 74% of voters, includes key projects such as Hydra, which will enable faster and more affordable transactions, and Project Acropolis, which will introduce a modular node architecture to simplify development and reduce operational costs [1]. These improvements are intended to lower the average transaction cost and block time, currently at 0.34 ADA and 20 seconds respectively, while also enhancing smart contract capabilities and cross-chain compatibility [1].

To address community concerns regarding the size and use of the allocated funds, the proposal includes oversight mechanisms such as monthly progress updates, detailed engineering timesheets, and quarterly budget reports. An independent oversight body, Intersect, will administer the funding and ensure that deliverables are met before subsequent payments are released [1]. This approach aims to provide greater visibility into how treasury funds are used and to build trust among stakeholders, who had previously expressed concerns about transparency and accountability [1].

The upgrades are part of a 12-month development plan that will bring measurable improvements to the Cardano network. By reducing RAM usage and operational costs for stake pool operators, the upgrades are expected to support a more sustainable and efficient ecosystem [1]. Additionally, the modular architecture and improved interoperability will help attract a broader range of developers and use cases, strengthening Cardano’s competitive position in the blockchain space [1].

In parallel, other major blockchains are also advancing their networks in 2025. Solana has increased its block capacity by 20%, raising the compute unit limit to 60 million, while Ethereum has expanded its gas limit to nearly 44.92 million and launched the Pectra hard fork to improve data processing and staking flexibility. These developments highlight a broader industry trend of infrastructure upgrades aimed at improving performance and scalability [1].

Cardano’s strategic focus on scalability, cost reduction, and developer experience aligns with the competitive landscape, positioning it to attract more developers and users. The structured approach to funding and execution, combined with community engagement, is seen as a key factor in ensuring long-term growth and innovation [1].

[1] Source: [1] Cardano Proposal for $71M Network Upgrades Gains Approval Amid Community Transparency Concerns (https://en.coinotag.com/cardano-proposal-for-71m-network-upgrades-gains-approval-amid-community-transparency-concerns/)