Cardano Community Approves $71M Treasury Funding for Core Network Upgrades

Cardano's community has authorized a significant funding allocation of 96 million ADA—valued at approximately $71 million—to support a year-long plan of core development upgrades. The proposal, put forward by Input Output Global (IOG), the project’s primary development team, passed with 74% of the vote, with 200 votes in favor, six against, and seven abstentions. This marks the first time the Cardano community has directly approved treasury funding for core network development [1].

The funding will be disbursed in phases, contingent on the completion of key development milestones. An independent body, Intersect, will oversee the release of funds, ensuring alignment with the outlined roadmap. To maintain transparency and accountability, IOG will be required to submit monthly progress reports, detailed engineering timesheets, and quarterly budget updates [2]. A dedicated oversight committee and smart contract-based checks will also monitor the implementation process.

Among the key upgrades planned are enhancements to Hydra, a scalability protocol aimed at enabling faster and cheaper transactions, and Project Acropolis, an initiative focused on modularizing the Cardano node for improved developer accessibility and flexibility [2]. The upgrades also aim to reduce RAM usage and operational costs for stake pool operators while establishing a foundation for more advanced smart contract capabilities and better cross-chain interoperability.

Cardano currently averages a block time of 20 seconds, with an average transaction cost of 0.34 ADA, according to blockchain analytics firm Messari [2]. These proposed changes are expected to enhance the network’s competitiveness and efficiency within the broader blockchain ecosystem. However, the approval was not without controversy. Some community members expressed concerns over the scale of the funding request, the resource allocation strategy, and the possibility that the proposal should have been split into smaller, independently voted sections [2]. A competing proposal from the Cardano Technical Steering Committee (TSC) was submitted but ultimately not endorsed by Intersect.

The approval of this funding aligns with broader trends in the blockchain industry, where major networks like Solana and Ethereum are also advancing significant technical upgrades in 2025. Solana recently increased its block capacity to 60 million compute units, while Ethereum has raised its gas limit and is preparing for its next major upgrade, Fusaka, scheduled for late 2025 [2].

The development also comes amid heightened scrutiny of IOG and its leadership, following allegations of ADA manipulation. Cardano founder Charles Hoskinson recently stated that an audit of IOG’s ADA holdings is nearing completion and will soon be made public. Hoskinson has denied any wrongdoing and plans to livestream the audit once finalized [2].

Overall, the approval of the 96 million ADA funding reflects a growing emphasis on decentralized governance and community-driven development in the Cardano ecosystem. If executed effectively, the planned upgrades could position the network as a more scalable and developer-friendly platform. Success, however, will depend on the timely delivery of these enhancements and the continued transparency of the development process.

Source:

[1] Cardano Community Approves $71 Million Treasury Funding for Network Upgrades (https://coincentral.com/cardano-community-approves-71-million-treasury-funding-for-network-upgrades/)

[2] Cardano Development Team Secures Approval for 96M ADA to Advance Network Upgrades (https://www.ainvest.com/news/cardano-community-approves-71m-treasury-protocol-upgrades-2508/)