Cardano Community Approves $71M Upgrade Plan Boosting ADA Price 74% Majority Vote

The Cardano community has approved a $71 million funding proposal for network upgrades, marking a pivotal moment in the blockchain’s governance evolution. The initiative, passed with 74% support in a community-led vote, allocates 96 million ADA tokens from the network’s treasury. The decision involved 200 votes in favor, six against, and seven abstentions, showcasing strong consensus among stakeholders [1]. This funding will be distributed in stages, with Intersect, a Cardano-affiliated organization, managing the process to ensure transparency and accountability [1].

The development plan, spanning 12 months, focuses on improving scalability, enhancing the developer experience, and boosting interoperability. These upgrades aim to increase Cardano’s transaction throughput and reduce costs, addressing key limitations that have hindered the network’s growth. The initiative also includes efforts to attract more developers by providing tools and resources that simplify application development on the Cardano platform [1]. Interoperability enhancements will allow Cardano to better communicate and transfer assets with other blockchain networks, a critical feature in an increasingly interconnected crypto ecosystem [1].

Two key projects under the plan are Hydra, designed for fast and low-cost transactions, and Project Acropolis, which will re-architect the Cardano node for improved flexibility. According to Messari, a blockchain research firm, Cardano currently processes transactions at an average cost of 0.34 ADA with 20-second block times [1]. The upgrades are expected to reduce these costs and improve efficiency further.

The approval has already had a positive impact on ADA’s price. The token has broken out of a month-long consolidation between $0.70 and $0.90, with technical indicators suggesting continued upward momentum. Analysts have identified a V-shaped recovery pattern and set price targets at $1.50 and potentially $3.00 in the longer term [1]. The cryptocurrency has shown resilience by maintaining support above the $0.70 level, with immediate resistance at $0.76. A breakout above this level could push the price toward $0.88 in the short term [1].

Retail investor interest has also increased, reflected in rising Google Trends searches for “Cardano price” and “ADA price prediction.” This growing attention is often a precursor to broader market participation, especially when paired with improving technical patterns. The current price structure resembles past bull market cycles, though it is developing more gradually [1]. Monthly consolidation above the exponential moving average has historically led to accelerated price movements for ADA, and with downside liquidity cleared and renewed retail interest evident, technical analysts view the conditions as favorable for continued upward movement [1].

The approval of this funding highlights the significance of decentralized governance in blockchain development. By allowing the community to directly allocate resources for key upgrades, Cardano is reinforcing its commitment to decentralized decision-making. The development team will be required to provide monthly updates, engineering timesheets, and quarterly budget breakdowns to maintain transparency. Smart contracts and an independent committee will also oversee the implementation process [1].

This milestone not only addresses technical limitations but also positions Cardano for long-term growth. The combination of structural upgrades and positive market signals suggests that ADA may be entering a phase of sustained momentum, potentially reaching levels last seen during the 2021 bull market. The successful implementation of the proposed improvements could strengthen Cardano’s competitive position in the evolving blockchain landscape [1].

Source: [1] Cardano Community Approves $71 Million Network Upgrade in Historic Vote (https://coinmarketcap.com/community/articles/6893841cd9eae331a6d9d335/)