Cardano Community Approves $71M Treasury for 2025 Upgrades With 74.01% Support

The Cardano community has reached a landmark decision by approving a $71 million treasury funding proposal to support core development and network upgrades for 2025. The initiative, backed by 96.8 million ADA, was ratified with 74.01% support from Delegated Representatives (DReps), far surpassing the 67% threshold required for approval. The proposal also received constitutional validation from five out of seven members of the Cardano Constitutional Committee, including the Cardano Foundation, IOG, and the Eastern and Atlantic councils [1][2].

This governance milestone marks the first time the Cardano community has directly approved treasury funds for core development under its on-chain governance system. The funding will be disbursed in stages, contingent on the delivery of key milestones such as Ouroboros Leios, Hydra enhancements, and Project Acropolis, which aims to re-architect the Cardano node for greater flexibility and developer accessibility. Each phase will be verified by independent oversight, with Intersect—a member-led body—monitoring progress through smart contracts and a dedicated committee [2][4].

Transparency is a central component of the plan, with IOG obligated to publish monthly progress reports, engineering timesheets, and quarterly budget summaries. This level of accountability has been emphasized by both supporters and critics within the community. While some questioned the overall size of the funding and the allocation structure, others welcomed the move as a sign of evolving governance maturity. The approval reflects a broader shift toward community-driven decision-making, where stakeholders directly influence the development trajectory of the network [2][5].

The timing of the vote aligns with a broader wave of blockchain upgrades in 2025. Solana recently expanded its block capacity, and Ethereum executed its Pectra hard fork in May. Meanwhile, Cardano’s governance developments have rekindled interest in the network, especially after founder Charles Hoskinson announced an audit of IOG’s ADA holdings—a move that has drawn mixed reactions from the community [2][6].

The ratification of this funding underscores the growing importance of decentralized governance in blockchain development. It demonstrates how community-driven models can align development goals with user expectations, ensuring that upgrades not only meet technical benchmarks but also address real-world performance issues such as high block processing times and transaction costs. As these enhancements are rolled out, their impact on Cardano’s scalability, efficiency, and overall adoption will be closely monitored by both investors and developers [1][3].

Source:

[1] Cardano Community Approves $71M for Core Network https://www.ainvest.com/news/cardano-community-approves-71m-core-network-upgrades-74-support-2508/

[2] Cardano Team Secures $71M Approval to Advance ADA https://cryptonews.com/news/cardano-team-secures-71m-approval-to-advance-network/

[3] Cardano Community Approves $71M Grant for IOE Upgrades https://www.cryptotimes.io/2025/08/04/cardano-community-approves-71m-grant-for-ioe-upgrades/

[4] Cardano treasury allocates $71m in ADA for protocol https://crypto.news/cardano-treasury-allocates-71m-in-ada-for-protocol-enhancements/

[5] Cardano Approves 96M ADA Treasury Funding for Core https://thecoinrise.com/cardano-approves-96m-ada-treasury-funding-for-core-development/