Cardano community approves $71M treasury for network upgrades via 74% vote

The Cardano (ADA) community has taken a decisive step forward in strengthening its decentralized governance model by approving a $71 million treasury allocation for core network upgrades. The funding, equivalent to 96,817,080 ADA, was authorized through a decentralized governance vote with 74% support, demonstrating broad consensus among stakeholders [1]. This move marks a pivotal evolution in Cardano’s development approach, transitioning from a centralized decision-making process to one driven directly by ADA holders [2].

The approved funds will be allocated toward two key initiatives: the development of Hydra and Project Acropolis. Hydra, a Layer 2 scaling solution, aims to significantly enhance the network’s transaction throughput by enabling multiple off-chain transaction channels, known as “heads.” This innovation allows users to conduct transactions off-chain while still benefiting from the security of the mainnet, with the goal of achieving near-zero transaction fees and processing millions of transactions per second [3]. These improvements are expected to make the Cardano network more scalable and accessible for global use.

Project Acropolis, on the other hand, represents a comprehensive restructuring of the Cardano node architecture into a modular design. This approach is intended to improve flexibility for developers, reduce complexity, and lower the barrier to entry for new contributors. By enabling independent modification of node components, the modular structure will support continuous innovation and greater adaptability in the rapidly evolving blockchain space [4].

Additional enhancements include the Ouroboros Leios consensus mechanism, designed to increase transaction throughput without compromising decentralization or security, and the Mithril project, which aims to shorten node bootstrapping time and offer lightweight client support for improved accessibility [5]. These upgrades are part of a broader vision to streamline operations for node operators and simplify the developer experience, ultimately fostering a more inclusive and efficient ecosystem.

The vote, which involved 213 participants, received strong backing with 200 in favor, six against, and seven abstentions. This high level of support reflects a unified vision among stakeholders for the future of the network [6]. Charles Hoskinson, founder of Cardano, acknowledged the significance of the vote and expressed gratitude to the community for its trust and continued support. He emphasized the importance of collaboration in shaping the future of the protocol.

The execution of these upgrades will require careful planning and rigorous testing, but Cardano’s track record of methodical development and active community engagement suggests the network is well-positioned to manage these challenges [7]. The anticipated improvements in transaction speed, cost, and developer experience are expected to significantly enhance the platform’s utility, particularly in decentralized finance (DeFi) and enterprise applications [8].

This milestone not only reinforces Cardano’s competitiveness among Layer 1 blockchains but also highlights the effectiveness of its decentralized governance model. By securing community approval for core development initiatives, Cardano has demonstrated a commitment to transparency, inclusivity, and long-term innovation [9].

Sources:

[1] Cardano Community Approves $71M Treasury for Core... (https://www.ainvest.com/news/cardano-community-approves-71m-treasury-core-development-roadmap-2508/)

[3] Cardano Community Approves $71M for Key Network... (https://www.ainvest.com/news/cardano-community-approves-71m-key-network-upgrades-2508/)

[5] Cardano Community Approves IOE Funding, Advances Decentralized Governance (https://cryptofrontnews.com/cardano-community-approves-ioe-funding-advances-decentralized-governance/)