Cardano Community Approves $71M for Network Upgrades via On-Chain Vote

Cardano’s community has authorized $71 million in funding to drive major network upgrades, marking a pivotal step in decentralized governance. On August 4, Input Output Global (IOG), the primary development team behind Cardano, secured approval to access 96 million ADA—valued at approximately $71 million—from the Cardano treasury. The approval came after a vote in which 74% of participants cast their support, with 200 votes in favor, six against, and seven abstentions [1].

This decision represents the first time the Cardano community has directly funded core development via on-chain governance. Tim Harrison, Executive Vice President of Community and Ecosystem at IOG, emphasized that the funding reflects a commitment to openness and collective responsibility in the design and evolution of the protocol. The funds will support a 12-month roadmap focused on enhancing scalability, improving the developer experience, and enabling interoperability with other blockchains, ultimately aiming to make the platform faster and more accessible [1].

The allocated resources will be directed toward two major projects: Hydra, a Layer 2 scaling protocol designed to boost transaction speed and lower costs, and Project Acropolis, which involves a redesign of the Cardano node to make it more modular and future-ready [1].

To maintain accountability, the funding will be disbursed in stages, with payments controlled by Intersect, an oversight body, based on predefined project milestones. IOG has committed to providing monthly progress updates, detailed engineering timesheets, and quarterly budget reports to ensure transparency and community oversight [1]. Despite the strong vote in favor, some community members raised concerns about the large funding amount and called for more clarity on how the funds will be spent. A few suggested that the proposal could have been split into smaller components, each with its own vote and budget. These concerns highlight the ongoing need for open dialogue and transparent governance in decentralized systems [1].

The approval underscores the community’s confidence in Cardano’s long-term vision and the importance of continuous innovation in the blockchain space. As the upgrades move forward, the network aims to strengthen its position as a key player in the broader blockchain ecosystem. The move also sets a precedent for how blockchain development can be funded and managed through community-driven governance, potentially influencing similar efforts in other decentralized projects [1].

Source:

[1] Cardano Community Approves $71M for Major Network Upgrades

https://www.livebitcoinnews.com/cardano-community-approves-71m-for-major-network-upgrades/