Cardano Completes Initial Phase, Faces Funding Uncertainty

Cardano founder and Input Output Global (IOG) CEO Charles Hoskinson has announced the completion of the initial phase of the Cardano blockchain. In a recent social media statement, he confirmed that the original roadmap, particularly its core scalability goals, has been fulfilled. However, the future of Cardano remains uncertain as IOG continues to develop advanced technologies like Hydra and Leios without secured funding.

Hoskinson emphasized that while Cardano’s foundational objectives have been met, the ongoing work on Hydra, a layer-2 scaling protocol, and Leios, a transformative layer-1 upgrade, is being undertaken at significant financial risk. IOG is currently self-funding these initiatives, which Hoskinson clarified may not continue if community-backed support does not materialize. “We’re currently developing Leios and Hydra at risk. If we don’t receive funding, we’ll complete the current work and then move on to new opportunities,” Hoskinson stated, underscoring the high-stakes scenario IOG now faces.

Since Cardano’s inception, IOG was granted 2.4 billion ADA to help nurture and expand the ecosystem. However, that allocation was tied to the now-expired original contract, which terminated in 2020. This historical detail has become a flashpoint in recent discussions, particularly as some critics question whether Cardano is truly “complete” and are calling for a retrospective audit of the original funding and milestones. One such social media commenter recently challenged the claim that Cardano’s development has concluded. Hoskinson responded by reiterating that the original obligations tied to that funding ended years ago, asserting that IOG’s current contributions exceed any initial commitments.

The debate over funding has escalated as the community prepares to vote on a proposed budget. Hoskinson has urged Cardano stakeholders to approve the budget to avoid damaging delays. He highlighted that the Cardano Treasury holds a considerable reserve of ADA that should be deployed strategically to maintain the momentum of ecosystem growth. “The Treasury has a large stockpile. Delaying funding decisions only hurts the ecosystem,” Hoskinson noted, cautioning against unnecessary obstacles that could stall progress. Yet, the funding dispute has also become a battleground for deeper grievances within the Cardano community. Hoskinson voiced his disappointment with individuals who he believes are exploiting the process to settle personal vendettas. Detractors have raised past IOG shortcomings, including the underwhelming outcome of the Atala Prism project in Ethiopia, as reasons to deny future funding. Despite acknowledging that mistakes were made, Hoskinson defended IOG’s overall track record and the broader success of the Cardano network.

During a recent ask-me-anything (AMA) session, Hoskinson took time to highlight the remarkable progress Cardano has achieved since its inception. He cited its valuation, global reach, and the growing ecosystem of decentralized applications as evidence of its importance in the crypto landscape. “Cardano today is a $25 billion ecosystem with millions of users and thousands of decentralized applications. It’s one of the top 10 cryptocurrencies and a major success story in the blockchain space,” he said. Nevertheless, he acknowledged the presence of “disgruntled” voices in the community and emphasized the need for decentralized governance to navigate such disagreements constructively. “Delegated representatives (dReps) now hold the power. This is what decentralization is all about,” Hoskinson concluded.

The path forward for Cardano now hinges on decisions made by the community through its decentralized governance framework. Whether IOG will continue to spearhead the next generation of upgrades or step aside depends on the outcome of these funding decisions. As Cardano enters a new era post-roadmap, the ecosystem’s fate rests in the hands of its stakeholders, and the choices they make could very well define its long-term trajectory.