Cardano Community Approves $70M Funding for Network Upgrades With 73.93% Support

The Cardano community has approved the Input Output Engineering (IOE) funding proposal with 73.93% support, signaling a significant step forward in decentralized governance and technical development. This approval enables the deployment of key network upgrades such as Ouroboros Leios and Hydra, designed to enhance scalability, reduce transaction costs, and improve real-time transaction capabilities. The proposal also incorporates Mithril, which accelerates node bootstrapping, and Project Acropolis, aimed at simplifying node architecture for developers [1].

The funding package, valued at over 96 million ADA (approximately $70 million), is the first of its kind to be directly approved by ADA holders through Cardano’s treasury system. Administered by the independent organization Intersect, the funds will be released in stages based on the achievement of specific development milestones. IOE has pledged to maintain transparency by providing monthly progress updates, detailed engineering timesheets, and quarterly budget reviews [2].

The approved upgrades represent a broader strategic vision for Cardano, which includes improving throughput, optimizing performance, and enabling more advanced smart contract functionalities. These enhancements are expected to expand the platform’s interoperability and support more complex decentralized applications. Additionally, the funding will support RAM optimization and the implementation of nested transactions, further strengthening the network’s technical foundation [3].

Ricky Rand, General Manager at IOE, highlighted the importance of the community’s decision, calling it a model for decentralized funding at scale. He emphasized the organization’s commitment to delivering the upgrades with accountability and transparency, aligning with the expectations of the Cardano community. A dedicated committee and smart contracts will oversee the spending process to ensure responsible use of funds at each development stage [4].

Cardano founder Charles Hoskinson has underscored the importance of stakeholder collaboration, noting that the success of the network will depend on the collective effort of its community. He has also proposed a sustainable bond-based funding model for future projects, suggesting that this structure could help prevent treasury misuse and ensure long-term financial stability for the ecosystem [5].

The successful vote reflects a broader trend in blockchain governance, where communities are increasingly taking direct control of protocol development. By approving the IOE funding proposal, Cardano’s stakeholders have demonstrated confidence in the governance model established by the Chang and Plomin upgrades. This shift from centralized decision-making to community-driven funding marks a significant milestone in the platform’s evolution [6].

As the upgrades progress, ADA holders can expect improved network performance, greater developer accessibility, and enhanced real-world applicability for the Cardano ecosystem. If executed successfully, the upgrades could serve as a blueprint for how decentralized communities can effectively govern and fund large-scale technological developments [7].

Source:

[1] AInvest, https://www.ainvest.com/news/cardano-community-approves-70m-grant-network-upgrades-price-4-128-2508/

[2] Mitrade, https://www.mitrade.com/insights/news/live-news/article-3-1009165-20250804

[3] Cardano, https://cardanofeed.com/cardano-community-approves-70-million-grant-for-ioe-network-upgrades-amid-ongoing-treasury-funding-debates-757

[4] Binance, https://www.binance.com/square/post/27823480261514

[6] Binance, https://www.binance.com/en/square/post/27825120252697